PRLog - Sep. 2, 2014 - AMESBURY, Mass. -- Steve Stanganelli, CFP® and independent candidate for 1st Essex State Representative for Amesbury, Newburyport and Salisbury, has proposed a common sense and practical plan for reducing the tax bite of paying property taxes: Make property taxes on your primary residence a tax deduction item. For renters he suggests that the state increase the maximum tax deduction one-third from $3,000 to $4,000.
Steve Stanganelli, CFP Proposes Tax Changes for Property Owners and Renters
"This is only fair," said the independent Amesbury-based financial planner and tax preparer. "In my tax practice I see landlords and investment property owners who can write off their property taxes against their rental income to lower their income tax bill. But homeowners have no such relief on their state income tax return while they do on their federal return," said Stanganelli.
And for renters, Stanganelli noted that the current maximum tax deduction of 50% of rent up to a maximum of $3,000 hasn't been increased for inflation in several years while rents have increased especially after the recent housing crisis.
"These are just two common sense ways to reduce a family's tax bite and household expenses and will help make it more affordable to live in Greater Newburyport as well as throughout the Commonwealth,"
Stanganelli also offered ways to help pay for such tax credits. "We have to reign in medical costs and reduce duplication in government services. One way to reduce medical costs is to stop supporting monopolies in health care systems. And in government services we can do better in delivering services more cost-effectively than to have multiple agencies offering social assistance for example without any cross-checks. By consolidating agencies and through better computer database management we'll improve efficiency and lower the chance that someone is getting state aid who isn't eligible."