Posted on 01/03/2018 8:46:12 AM PST by SeekAndFind
The Republican tax overhaul may not do a great deal to boost overall economic growth but its already having one stimulus effect. Call it the Full Employment Act for Tax Pundits.
Ever since the contours of the plan made clear that residents of high-tax states would take the biggest hits, a cottage industry devoted to strategizing blue-state tax work-arounds has emerged.
As a reminder, Americans for generations have been able to deduct the amounts paid for state and local income tax, as well as property tax, from their federally taxable income. But the new law caps that amount at $10,000, making it far more expensive to live and work in those places and conceivably hurting local economies and housing markets.
The state governments in California, New York and New Jersey are all mulling legal challenges to the federal law. But theyre also eagerly hunting for ways to revamp their own tax systems to cushion the blow to their residents.
And theyre in luck. From Medium posts to academic papers, from Twitter chats to economic think tanks, tax strategery is proliferating.
As New York Gov. Andrew Cuomo put it just before Christmas, announcing a plan to encourage New Yorkers to prepay 2018 property taxes, I say this is an economic civil war. Not North and South over the issue of slavery [but] an economic civil war pitting red states against blue states.
Call your GOP representative and tell them: Vote NO on this tax monstrosity. #GOPTaxScam pic.twitter.com/dHvgx8QWCh— Jerry Brown (@JerryBrownGov) December 18, 2017
(Excerpt) Read more at marketwatch.com ...
I thought the DEMS wanted higher taxes. Well, the blue states are getting what they wanted.
Seems fair to me.
Most of them in Illinois will. Our district map has been so gerrymandered its not funny.
L
There needs to be a correction. Its about bloody time.
Their move was a correction for them.
In a free market, real supply and demand determines the selling or rental price.
“State-run charities? Letting some slimy Democrap Governator compete with the Salvation Army and Little Sisters of the Poor for charity dollars??”
Only a soul less blue state Never Trumpster could come up with this terrible concept.
The problem with most charities is they are controlled and run by liberals who get most of the donations as salaries and office expenses.
Ummm...
They were characters in the Beatles feature length 1968 cartoon Yellow Submarine. I'm betting you'd have to ask your dad...
Man, that was a LOOONNNG time ago.
“making it far more expensive to live and work in those places”
Awwwww, sniff sniff, boo hoo!
And it’s not FAR MORE expensive. Frankly, I don’t give a rat’s poop.
And wait until a “lawyer for the poor” files suit claiming that state lotteries have to be treated the same way, with players receiving a dollar for dollar tax credit.
If a person “donates” $1,000 to the state “charity for transportation,” then a poor person of color is being treated unfairly if their $1,000 in lottery play (which helps schools...or so they claim) doesn’t result in a $1,000 tax credit (or refund if they’re low income).
Really screw with blue state finances. I’ll grab the popcorn.
exactly!
DEMS have all ways wanted higher taxes.
Well, the blue states are getting what they wanted.
Seems only fair.
“They were characters in the Beatles feature length 1968 cartoon Yellow Submarine. I’m betting you’d have to ask your dad...”
I was 36 years old in 1968-———too busy to pay much attention to anything-——but family.
.
The state as charity idea is a total waste of time. It will generate zero tax advantage the moment the donor receives the intended quid quo pro of a reduction in his state tax obligation. This is longstanding tax law.
How is the new tax code going to affect blue states? I have not been to my tax guy yet.
That would be thoroughly illegal. IRS publication Charitable Contributions - Quid Pro Quo Contributions states that if you get ANYTHING of value in return for a "charitable" contribution, then you must subtract the value of what you got.
Fun little movie.
What a$$holes! The “payroll tax shift” would reduce the employee wages by the amount formerly paid in state taxes. Please tell me how that would be calculated? There is no way to calculate it.
This idea is nothing but a legal fiction. Your employer takes the money right away, when you earn it, and doesn’t give it to you. That is EQUIVALENT to you paying it yourself. Know what a legal fiction is?
And it was calculated on the invalid assumption that the payrate reflected in your current paycheck is valid over the entire year, and not just for that pay period. So if you quit your job during the year, and not Dec 31, the amount the employer took was too much, and you have no way to get it back. How do you plan to get it back? You are assuming that the employer keeps that money in escrow for you, when in reality the employer sent it to the government.
Now there is some convoluted thinking. More correct, the FEDs are making tax policy independent of the States. To adjust the Fed tax plan to what States are doing is exactly what Leonard Lance is complaining about.
Ask your Mom...Though she was born a long, long time ago. Your mother should know. Your mother should know.
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