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That's simply false.
Scenario 1: person makes 250k in taxable income (excluding SALT), has a $500,000 home & lives in Las Vegas
Scenario 2: person makes 250k in taxable income (excluding SALT), has a $2,000,000 home & lives in SF bay area
(yes, a $500k home in Vegas is roughly comparable to a $2M home in the bay area)
Scenario 1: Since you live in Nevada, you pay $0 in state income taxes & $5000 in property taxes, leaving you with $245,000 income before federal taxes. That results in a $61,400 federal tax liability. Effective tax rate: 61400/245000 = 25.1%
Scenario 2: Since you live in taxable income in California, you pay $20,700 in state income taxes & $20,000 in property taxes, leaving you with $209,300 of income, before federal taxes. That results in a $59,700 federal tax liability. Effective tax rate: 28.5%
Yes the 500k house in Vegas in comparable to the 2M home in San Fran (both are twice the median homes sell prices).
Let me point out to you were you are wrong
Scenario 1: Your calculations are correct except $4,830 on property tax but close enough
Scenario 2: $22,108 state income and $1,149 in CASDI with property tax on a $2M home in San Fran at $13,660. Since this is over the $10k cap their deductions stop at 10. Leaving em with $240,000 fed tax wages which is alot closer to the person in scenario 1 living in Vegas with a taxable income to the feds of $245,000.
This makes people across any state on a more equal playing field since they are all under the same fed government.
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