Roskam Pushing for Some Continued Property Tax Relief — 3 Comments

  1. I pointed this out to our U.S. Congress Rep. Randy Hultgren early last week that the removal of this deduction would be devastating to Illinois taxpayers who pay some of the highest property taxes in the nation.

    I asked if Mr. Roskum was trying to keep this deduction?

    He assured me that his colleague Congressman Peter Roskum was working hard on the issue.

    So glad to hear things are progressing on this front.

    And i see bi-partisan support for keeping this deduction.

  2. The Tax Bill eliminates the current personal deduction of $4050 and current standard deduction of $6350, which now totals $10,400 in deductions.

    This would be replaced with a $12,000 standard deduction and no personal deduction.

    This means an increase of $1600 deductions in return for disallowing local and State tax deductions.

    BIG LOSS for all Woodstock taxpayers.

    A $200,000 home with homestead exemption pays $7644 property taxes.

    $7644 deduction would be lost, replaced with only $1600 increased deduction.

    That is a loss of $725.28 new higher federal taxes to a Woodstock taxpayer assuming the lowest 12% bracket (below $37950 income).

    Now add to that the lost State income tax deduction(5% of income).

    Median income $58000 x .05= $2900. At 12% +25% (next bracket up)= $227.7 + $50.01= TOTAL $277.71 additional federal tax increase attributed to loss of State tax deduction.

    Total Federal TAX INCREASE due to new tax law= $1003 INCREASE for Woodstock taxpayers earning median income living in median value homes.

    (offset partly by unknown lower bracket shifting. If current 10%-15% brackets on income of
    $0 – $9,325 $9,326 – $37,950 are blended to 12%, that would lower taxes on $37950 earners by $672)

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