Should my trash pick-up be tax deductible?

… and what about HOA fees?


For openers, let me declare: I think that I end up worse off under the proposed GOP tax plan.

That said, I’m all for eliminating the deduction for state & local taxes.


Here’s why I’m not swayed by the whiners in the high tax & spend states ..


1) Federalism

First, the U.S. is a Federation of states.

That means that on many issues, each state can chart its own course.

Said differently,  tax-payers in each state have some control over their destiny.

They have clout in local elections and have some clout over how their elected officials behave.

So. taxpayers can influence the services that state & local governments provide.

State & local taxes fund services that tax-payers want the state & local governments to provide.

For example, if residents want to support sanctuary cities & states, and provide free services to non-citizens …  that’s their prerogative.

But, if people in other locales don’t want the government providing those services … and don’t charter their local governments to do so. why should they be forced to subsidize the largesse of the communities that do?

It’s as simple as that.


2) Fair & equal

On a more transactional level, there are variations in the way some local services are provided and paid for.

For some folks, the fees associated with services are charged via S&L taxes.

Currently, the taxes that fund those services are tax deductible.

But, in some instances, the local governments outboard the services to private companies and folks pay those companies directly.

In those cases, the fees are not tax deductible.

Two quick examples.

In many communities, local taxes fund government provided trash collection … it’s bundled in the services that are funded by local taxes … so it’s tax deductible.

I live an a county where the government doesn’t provide trash collection services.

I (and my neighbors) have to pay about $450 per year to a private hauler.

That expense isn’t tax deductible.

Is that fair & equal treatment under the law??

Or, what about people who live in “private” neighborhoods with Home Owners Associations that charge an HOA fee and provide services like trash pick-up, snow removal, swimming pools, etc.

Folks who get those services through their local governments  are, in effect,  able to deduct the associated costs as part of their state & local tax deduction.

Not so for the folks paying for those services through a non-government HOA.

How is that fair?


So, while I’ll be getting dinged by the proposed tax rule changes, I still think eliminating the S&L tax deduction is a good idea …



Follow on Twitter @KenHoma            >> Latest Posts

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s