SALT: Trump, Big Beautiful Tax

[August1991]

SALT= State and Local Taxes

Can an American explain this to me?

In Canada, some provincial/municipal taxes are deductible.

[August1991]

In Canada, we generally submit one single federal income tax form. In this federal form, we must declare a residence, declare an income and we pay a federal income tax - the provincial income tax is a portion, it is not deductible.

In Quebec, I submit two separate income tax forms. In my federal form, I can reduce some of my federal taxes based on Quebec taxes.

In Canada, we pay our local property/school taxes separately. In Quebec, I cannot deduct either from my federal/Quebec income taxes. 

 

[paxamericana]

On 6/30/2025 at 10:43 PM, August1991 said:

SALT= State and Local Taxes

Can an American explain this to me?

In Canada, some provincial/municipal taxes are deductible.

Those are deductible from federal

[August1991]

On 7/3/2025 at 10:02 AM, paxamericana said:

Those are deductible from federal

Please explain. WTF?

Imagine the incentives!

====

In Canada, I declare an income. The federal takes a cut. The province takes a cut. Municipal? The city has a property tax.

I cannot reduce any of these taxes with the tax I pay to the other level of government.

Imagine: Quebec government says that you can reduce your federal tax with taxes paid to Revenu-Québec.    

Edited yesterday at 12:40 AM by August1991

[paxamericana]

State sales tax and state income tax are deductible from the federal. If you make 200k and get taxed 50k by the state that year, your effective taxed income is 150k 

[August1991]

6 hours ago, paxamericana said:

State sales tax and state income tax are deductible from the federal. If you make 200k and get taxed 50k by the state that year, your effective taxed income is 150k 

WTF?

1. How does the federal IRS (CRA) calculate how much state sales tax a person paid?

2. Huh? 200K - why, God wish. In Canada, this would mean that if the provincial government taxes me, and if I earn more than 200,000, I could reduce my federal tax by the amount I paid to provincial tax.

Heck, Quebec already does this.

[paxamericana]

6 hours ago, August1991 said:

WTF?

1. How does the federal IRS (CRA) calculate how much state sales tax a person paid?

2. Huh? 200K - why, God wish. In Canada, this would mean that if the provincial government taxes me, and if I earn more than 200,000, I could reduce my federal tax by the amount I paid to provincial tax.

Heck, Quebec already does this.

1) they don’t, you have to calculate and prove it your self when they audit.

2) the recent bill aimed to reduce taxes on corporations. It’s built to encourage business spending.