From Woodstock resident Susan Handelsman:
What Ending Property Tax Deductions Would Do To Congressman Randy Hultgren’s District
In my understanding, if SALT deductions are eliminated, new tax bill will mean tax increase for local median income earners.
New tax bill would eliminate personal deduction of $4,050 and current standard deduction of $6,350, 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.
Tax increase for Woodstock taxpayers.
A $200,000 home with homestead exemption pays $7,644 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 $37,950 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, with 25% bracket on the balance assumed unchanged.)