Like most middle class Oregonians, I rely on itemized deductions to reduce my federal tax burden. The deduction for state income taxes is important to Oregonians because we pay a much higher than average (among the 50 states) state income tax. The elimination of that deduction would adversely impact myself and a lot of other middle class Oregon taxpayers.
And who benefits from our loss? The wealthy elite. Currently the top tax rate for couples applies to those making over $470,700. Under “tax reform” the top rate will apply only to those making over $1,000,000. A million dollars a year? How many people in southern and Eastern Oregon make that kind of money?
So: middle class Oregonians will pay more federal income tax due to the elimination of the deduction for state income tax, and people making between $470,700 and $1,000,000 will pay less. What kind of upside-down logic is that — stiffing the middle class so the wealthy elite can pay less? I ask our Congressman, Greg Walden, to protect the deduction for state income taxes and let the wealthy elite pay their fair share.