Thousands of Northern Virginia homeowners face higher taxes
A report by the Democratic staff of the House Oversight and Government Reform Committee, of which Connolly is a member, documents these impacts of the tax law:
None of the approximately 547,600 homeowners currently living in Northern Virginia will be allowed to claim deductions for interest on home equity loans they use for any purposes other than home improvement.
About 106,800 homeowners in Northern Virginia with existing home equity loans will not be allowed to claim full home equity interest deductions as they did in the past.
About 174,100 Northern Virginia homeowners will lose the ability to deduct the full amount of their property taxes because their combined state and local tax deductions are more than $10,000.
“The Republican tax scam will hit most Northern Virginia taxpayers hard in their pocketbooks, especially local homeowners who will now be forced to pay more for their greatest asset – their home,” Connolly said. “While President Trump and Republicans in Congress gave their billionaire friends a giant tax cut, more than 174,100 Northern Virginia families will no longer be able to deduct their full property taxes next year.”
Before that tax law was enacted, homeowners could deduct interest on home equity loans if they use those funds for unexpected medical emergencies, to pay for college education, or for any other purpose. Now they can only deduct that interest if they use the loans for home improvement.
I don’t know about other readers, but my taxes have gone down as a result of the new federal tax law.
I find it relevant that this site did not report at all on the increase in property taxes for 2019 approved by the Fairfax County Board of Supervisors, but sees fit to post, with no input from those with opposing views, the Democratic report on the new federal tax law.
I understand this website near the bottom of its Internet, but not Mobile, homepage, states it covers issues from a “progressive viewpoint” but the above is very biased.
The owner of this site seems to be communicating that tax increases are bad, but only when Republicans can be blamed for the tax increases. When Democrats increase taxes it is either good or not News.
Why no post on the 2019 increase in Fairfax County property taxes? This tax increase is relevant to the readers of this local blog.
Put the pitchfork down dude, she did report on it back in February.
LOL Connolly arguing against higher taxes. Can't deduct over 10k of property tax bill-so basically homes valued a little under $1 million in Fairfax County. Sounds like paying their fair share to me.
Uh, hey, state income taxes are also bundled into this $10k limit, not just property taxes. With Virginia's state income tax, it isn't too difficult for a working, home-owning family to bump up against this $10k limit.
The Tax Cuts and Jobs Act (P.L. 115-97) (TCJA) represents the most significant overhaul of the tax system in decades. One of the most contested provisions during the bill’s drafting was the proposed repeal of the itemized deduction for state and local income, sales, and property taxes (SALT deduction). The authors report the latest status of the SALT deduction, present the common arguments for and against repeal, and provide a brief overview of the SALT deduction’s impact during the last major tax reform debate in 1986.
Good point. But a family making 250k and living in a house worth 500k would pay about 1500-2000 more in taxes if they itemize. Hardly a struggle on a 250k income. And this calculation doesn't include an offset lower income taxes which which cut that in about half.
Hardly a struggle? The middle class (YES, this includes hard working 6-figure earning 2-income families) ALREADY support the rich, and the 40 some-odd percent of Americans that pay no income taxes. And they should pay MORE? Absolutely not! Here’s what my rule for tax deductions would be – does it benefit working families? Than it stays. Trump and Republicans would love nothing more than to take every single tax deduction used by working families – mortgage interest, state income tax, 401k, student loan interest, etc. – all to prop up tariffs, corporations, the 1%, and destitute red district layabouts.
^ BINGO.
Thanks, Trump and congress. This was a blatant giveaway to backwater red districts where properties are worth zilch and everyone is destitute or on disability.
No matter how many howling Republicans come out in these comment sections, Mason District, and Northern Virginia, overwhelmingly vote Democrat. Just a reminder.
Yeah because half of them aren't even from VA, but move down here from the Northern states.
Classy. Way to generalize and marginalize. Go to any midsize city and they aren't hit by the cap. Plus where was Connolly's "analysis" on the income tax cut that benefits nearly everyone's bottom line.
So by my calculation, if your home is worth less than 890,000 then the local deduction cap does not affect you. Cry me a river. Go on zillow and set the minimum value for a house in Annandale at 875K and see how nice and big the houses are. Nice try, Gerry.
Hi, Mr. Open-Minded, why should the rest of the county subsidize high tax states with their ability to deduct their high local taxes?
Susie – Great point, not to mention that the blog owner will only post comments after approval. I have had dozens never show up because the owner of this site cherrypicks
it’s not a point at all, Susie is wrong. If you don’t like the blog, don’t read it.
B/c the blog owner is a liberal.
Yes it is true that tax cuts gave crumbs to a large majority of people but study after study has shown that these cuts have disproportionately benefiting the rich and corporations. In fact the graph here shows that Corporations are reporting massive profits largely due to tax cuts. https://www.liteforex.com/blog/analysts-opinions/euro-the-more-you-have-the-more-you-want/
And at what cost, debt is going to hit Trillion dollars soon but that's only an issue to Republicans when Democrats are in charge. History has shown that there is good chance any economic benefit from this is going to be temporary.
This juiced economy (remember the mid-2000's), crazy debt and inflation is headed for trouble. I am just waiting on the Trump recession to buy a house. Give it a year or two.
G
Yeah, well always a Republican since I moved here in 1985, and still am!
Anonymous 12:12
I'm with you on that ~ cherrypicking. Go ahead and mention something she doesn't agree with – and it will never see the light of day. Just like Trump blocking Twitter followers because he didn't want to see their comments.
Lol no
If you own a home over $800K, you are rich and deserve to be paying more than those with cheaper-valued homes. This effect is moral and progressive so the government can keep more of the money to assist the working poor and less fortunate.
This is factually incorrect. The total amount of federal taxes a person pays is going down, regardless of the change to how much property taxes can be deducted. Connelly is misleading people and trying to justify local taxes that are too high.
Fairfax County is screwing just about every middle class family. Their real estate taxes have sky-rocketed…why for social programs, for renaming a school at the tune of $1.5 million; for paying overtime into 100 hour a week to many of the needed protectors. Instead of hiring new employees, they use overtime for their justification. Also for their generous retirement program. I have friends that work for the City and they all say that the abuse of tax dollars are over the top and they cringe when talking about this. It is shameful that our taxes continue to go up with politicians doing this. Please….go blame on Trump…need to blame it on someone. FFC, do your job and do it effectively. You are a scam to the middleclass families. Time to move out of here. Fed up with the trash, the broken sidewalks, the overgrown roads, the dead hanging trees and the traffic. Disgraceful