Property Taxes, Professor, Harvard discussed on Marketplace All-in-One


Yeah when you pay state and local taxes you get to deduct though is anur federal income tax returns about forty four million people do that every year the house bill gets rid of most of us deductions with an exception for up to ten thousand dollars in property taxes the senate bill goes even further and it gets rid of state and local tax deductions entirely kenneth rogoff an economics professor at harvard says that hurts some states more than others the state and local tax reduction is a huge benefit for states like new york and california which how very high tax rates compared to other so getting rid of it would be a big blow to residents and lawmakers from those states and some of them are republicans by the way and what about the corporate tax rate both bills low rate from 35 to twenty percent rate but in the senate bill that cut wouldn't go into effect until 2019 and that's ruffling feathers because a big part of these gop push for tax reform is the promise that corporations will get a lower tax rate at kenneth rogoff again if they differ it for a year people might wonder will it ever happen there's an election in two thousand eighteen and the idea is if lawmakers lower that tax rate before that happens it would be harder and more costly to repeal another area that probably a lot of people are interested in is the deduction for student loan interest how did the bills handle that one.

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