On Sunday, U.S. President Donald Trump announced the possibility that, once the tariffs take effect, there could be a reduction or elimination of income taxes for individuals earning less than US$200,000 a year.
“When the tariffs cut in, many people’s income taxes will be substantially reduced, maybe even eliminated entirely. Focus will be on those earning less than $200,000 a year,” the Republican president wrote today on his social media platform, Truth Social.
“Also, massive numbers of jobs are already being created, with new plants and factories currently being built or planned,” he added.
“It will be a bonanza for America!!! The External Revenue Service is happening!!!” the U.S. President concluded.
This week, a coalition of twelve states, led by the attorneys general of Oregon and Arizona, filed a lawsuit seeking to block the tariffs imposed by Trump, arguing that the tariffs are “illegal.”
The lawsuit aims to block the imposition of a 145% tariff on most products from China and a 25% tariff on most products from Canada and Mexico, important trading partners of the plaintiff states.
It also challenges the 10% tariffs on most products imported from the rest of the world, as well as the Trump’s plan to raise tariffs on imports from an additional 46 trading partners starting on July 9.
Ok so about the same as up here. Glad to have my perspective corrected.
I know there are specific states that have less tax, though, right?
Yeah, State income tax is reduced in some places. My federal taxes are ~$250/wk while state taxes are ~$50/wk. That’s middle of the road for state tax. I know California and NY charge a lot more, but they also get a lot of that with higher property taxes. Which I wouldn’t have to pay because I don’t own property.
Also it’s not technically a tax, but health insurance is another $100/wk for a plan that requires me to spend $8000 out of pocket before they even consider paying for anything. If I don’t take that employer offered health insurance, I have to pay an additional tax penalty at the end of the year that goes to the health insurance companies, so it’s kinda a tax.
Brutal
Hey, they gotta pay for those warplanes and missiles somehow. Awesome how the roads and infrastructure around us is totally collapsing and taxes keep going up for poor people.
Am glad my boss got that PPP loan though. Him and his son got new houses and cars when they cashed it out then laid everyone off.
It’s not really true unless you are wealthy enough to have an accountant shuffle your money around for you. Most states end up around the same amount once all is said and done cause that’s how much it costs to run a state.
Makes sense. Well then fuck, sucks all over doesn’t it?
doesn’t Nevada have no state income tax?
When States have low income/sales/property tax they pretty much always have a higher income/sales/property tax to make up for the difference. This part doesn’t really make it into the discussion cause it’s sorta complex and most American just like to whine about the tax rate in general and nothing beyond that.
Yeah, but you have to live in Nevada to live there.
options include “Shitty Vegas” and “Smaller and Even Shittier Vegas” (Reno)
No income or sales tax in NH, but it’s not a good thing. It actually makes taxes regressive because property tax has to be so much higher to pay for the schools. People in poor communities pay sometimes 10x the property tax rate for much worse schools.
Yes, we pay federal income tax and state income tax. Some states have variable income based rates, some are flat. Iirc there’s some state (North Dakota maybe) that has zero state income tax for lower income people.
Don’t get me started on how sales tax disproportionately affects lower income people.
Ik Florida has no state income tax. As a result you get shit public services and also you’re stuck living in Florida lol
The other states with taxes have good public services, right?
Not great compared to other developed countries but noticeably better. New York State has more resources for neurodivergent people than Florida and I believe their SNAP benefits give out more as well.
You don’t have to tell me, been working poor my whole life but i would like to get you started because i steal other people’s words for conversations in real life so my positions sound smarter
I’m sure you get the gist then
For arguments sake let’s say someone making 100k a year and someone making 50k a year both consume the same amount of necessities. Therefore they are paying the same ~10% tax on groceries, gas, clothing, household items, etc. While they both pay the same amount of sales tax, in reality, the tax burden is doubled on the 50k earner. They have half as much money but are paying the same amount of sales tax.
Personally, I think sales tax should just be abolished, but that’s in a world where that lost tax income is coming from taxes on high earners and the wealthy.