CA is the land of nuts and flakes, what does anyone expect from a one party state dominated by foreigners?
Won’t work?
Doesn’t Tax law looks at the reality of transactions. Not the window dressing?
Just like ObamaCare, it will be deemed as a Tax since it is in Lieu of taxes. Someone needs to sue right now.
And since most of the really rich live in NY and Calif. what's the surprise?
And voters in California and New York will continue to vote...with their feet.
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Possibly a shell game, but in the present situation, it will sell.
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This is the way the communist libeRATS FORCE caliMEXICO to stay blue!!
I thought liberals loved paying taxes? Why would they scheme so hard to avoid them. Oh, they’re being hypocrites as usual, I see.
Maybe the best lesson that Californians would learn is to send the money to the Caymans and watch the Caymans nationalize it or have the Brits tax it there . . . :)
All the IRS has to do is declare that those “charitable contributions” are not tax deductible after declaring they do not meet the definition under Federal tax law. It’s not a shell game, it’s a pipe dream.
Tax fraud which is a felony
So predictable.
Protecting all the Liberal Silicon Valley Millionaires and Billionaires?
Meanwhile, Moonbeam adds additional Gas Taxes, higher Vehicle Registration Fees and stealth Carbon Taxes which directly impact the Working Poor and Middle Class and there is nothing but silence.
Luckily no Liberal Millionaires and Billionaires were hurt with Moonbeams new Tax and Fee Policies.
Would love for these States to implement these schemes and then the IRS charges the super rich individual that use these illegal schemes with criminal tax evasion.
I say go for it Anything to keep government from picking your pocket is worthwhile
Then we can also use similar schemes to avoid paying California’s outrageous taxes
I think the states could mandate that impacted people pay $5,000 in “child support” to each child of theirs, then tax that away.
Most of the taxes are for K-12 education and Medicaid anyway.
Another possibility is to start charging income-based tuition for K-12 schools. That would require a state constitutional change.
Rich towns will privatize their streets (parks, beaches, etc.) since the tax to maintain them would no longer be deductible. FedEx and UPS might have to pay access fees which Amazon Prime would have to eat.
Another possibility is to levy a paycheck tax on the employers instead of income tax on the employees.
anybody who’s ever paid federal income taxes, and certainly any lawyer or CPA or enrolled agent knows that the benefits received in return for any contributions are subtracted from the amount of the deduction and it is just the remaining balance, if any, that is actually deductible under federal tax law. the actual NET deduction, NOT the gross deduction
in short, the Californication political hacks that are proposing this shuck-and-jive realize it will not work, it is already (for a very long time) illegal
these political hacks are obviously just posturing for the hoipolloi
Say I live in New York but my employer is in New Jersey.
How does Cuomo propose to collect his tax from an employer who physically isn’t there?
This part needs a rebuttal. "State and local taxes" explicitly includes property taxes, which are roughly 1.2% yearly of what you paid for your house. A $500K house would be $6000 in property taxes by itself. That lowers this $140K income benchmark way down.
I'm not arguing against the new limit, just correcting this unforgivably narrow view of what a "typical" CA SALT deduction is and how many would generate it.