The post-Christmas retail sale receipts will be much lower this year in many blue states as homeowners line up to prepay their 2018 real estate taxes.
These lines in many municipal offices seem to rival those on Black Friday before the stores open are a result of President Trump signing the new tax law last week.The new legislation puts a cap of $10,000 that filers can deduct for state and local taxes on their federal tax bill. So for people who live in a high tax state — which usually coincides with it being a Blue State homeowners could benefit by paying the tax in 2017, while the deduction has no limit for 2017.
This is the exact reason I am against Trump’s “tax cut”. It punishes the exact segment of the economy that has kept the US moving forward the last 10 years.
The dwindling middle class, who funded President Obama’s healthcare program, now have to foot the bill for Trump’s tax cuts for those Americans who are richer than them and poorer than them.
Washington seems to believe that people who have done the right thing their whole life — by going to college, getting a decent job, buying a house and starting a family — have been in the bullseye of politicians to fund their socialistic programs.
While the tax bill came so late in the year to affect holiday retail sales, it will certainly dampen the post-holiday sales, as middle class homeowners reallocate resources to grab the tax break one more time.