Republicans are slowly waking up to the fact that their taxpayers are not happy about the newly imposed tax bill. Right now, the issue is the incoming $10,000 cap on the deduction for the State and Local Taxes or SALT as it is colloquially known. Alarms have already been sounded for the thousands of taxpayers living in relative higher taxed states.
Income first, tax later
The big problem is that the prepayment of taxes could be done only after an individual earns some amount of money. It is thus apparent that even if the government allows the prepayment of taxes, the latter could not be paid until that person earns money. Property tax bills are sent out by states. This happens every calendar year. This is why the IRS announced on December 27 that homeowners could only deduct the prepaid property taxes from the income tax filings the next time only if the concerned taxes on the property were first assessed and then paid during 2017. A majority of Washington area jurisdictions said that they are yet to send out the property tax bills for the coming year. It means that property owners could not pay in advance and later claim deduction prior to federal cap deductions taking effect. In short, those house owners who have prepaid their property taxes for 2018 have wasted their time.
It is apparent to anybody that the GOP have actually raised taxes by denying an excellent deduction which could be much more profitable compared to minor rate reduction. This is the reason no one is celebrating tax cuts.
Taxpayers located in states which are heavily taxed or saddled with steep property bills could blame President Donald J. Trump and the Republican Congress members for the tax pain. The GOP has found out that it will be more advantageous to give it to the blue state residents who have the advantage of itemizing with free use of SALT deduction. The tax bill is so partisan that it punishes people who did not vote Republican. This partisanship attitude has even been found to be present in a number of thinktanks like Heritage Foundation. Stephen Moore, the economist of the foundation, and an architect of the bill has joked that it is death for the Democrats- an attitude uncalled for. There is a strong possibility that the blue state residents would vote to push Republicans out of power in the next election.