Posted on 01/10/2018 10:37:15 PM PST by Oshkalaboomboom
Democrats in high-tax blue states are already plotting ways to avoid the new tax law, hoping to seize on gimmicks that will allow their residents to cut their federal tax burden without costing the states themselves any money.
The Democrats are trying to get around a new $10,000 cap on how much of their state and local taxes residents can write off on their federal forms. High-tax states fear their residents will quickly top the $10,000 limit, leaving them grumbling over their higher tax bills.
New York Gov. Andrew Cuomo has suggested switching some of his state’s tax collections from personal income to a corporate payroll tax, saying those aren’t subject to the $10,000 cap.
New Jersey and California Democrats, meanwhile, suggested allowing residents to pay some of their state taxes as charitable deductions, saying they could then claim the federal tax deduction for money they’re paying to the state.
“I think we need to do everything humanly possible to cut taxes and find ways to [give] people relief in the face of this tax hike bill, which … is directly targeted at states like ours,” Rep. Josh Gottheimer, New Jersey Democrat, said this week on MSNBC.
Mr. Gottheimer is helping spearhead the effort in New Jersey along with Democratic Gov.-elect Phil Murphy, who has also raised the prospect of challenging the new law in court.
In California, state Sen. Kevin de León has formally introduced legislation that would allow taxpayers to make a charitable donation to a state-run fund that they could, in turn, deduct from their own tax liability, minimizing the loss from the new limit on the so-called SALT deduction.
“The Republican tax plan gives corporations and hedge-fund managers a trillion-dollar tax cut and expects California taxpayers to foot the bill,”
(Excerpt) Read more at washingtontimes.com ...
They’ve gotten to bargaining very quickly.
It’s not just democrats. This forum has at least three Turkey-Lurkeys heralding financial disaster. It will be interesting to see if they are as devastated as they thought they would be.
>>>“The Republican tax plan gives corporations and hedge-fund managers a trillion-dollar tax cut and expects California taxpayers to foot the bill,”<<<
Because there are no Corporations and Hedge Fund Managers in CA...
Tax fraud is a felony
They’re not loopholes any more. They’re conspiracies. Part of PDJT problem with these inferior federal appeals courts stems from their including things beyond the 4 corners of the issue. Or more succinctly they are taking campaign rhetoric and using it as a basis for their injunctions against Trump’s EO.
Let’s hope the IRS takes the same tact and comes down hard on people using this faux loophole.
If you’re referring to Blue State FReepers displeased with this bill, they have good reason to be upset. Despite the existing SALT deductions, NJ, CA, & NY pay far more to the fed (per household) than every other state.
But this bill wouldn’t be an issue if federal spending wasn’t so damn high.
Fraud is still fraud even if State legislators and Governors are the one behind it. They should be charged with Federal Tax Fraud if they try this stuff.
Beautiful
This fraud, if attempted, would be perfect for the application of the RICO statute.
Paying taxes as charitable donations to the state?
Could be a prelude to voluntary taxation?
those numbers are based on corporations showing their taxes in those states. Take corporate taxes out and those numbers fall apart.
My comment references only household contributions apart from business tax contributions. And only TX is relevant when business taxes are factored in.
Why do they pay more per household?
Is it because the average household income is higher?
Why is the average household income higher?
Answer those questions and I don’t believe there will remain a rational reason for them to be upset. Individual taxes are paid on a progressive individual income tax schedule that liberals love. Why should they get a bigger deduction benefit because the cost of living in their state is higher? Why don’t they lower the cost of living in their states so they pay less (/s) instead of whining?
The blue-State democraps are such frauds after years of arrogant superiority lecturing anyone opposed to their government largess that the rich need to pay their “fair share” - are now trying to avoid paying taxes. LOL Hey!! These rich states need to pay their fair share! My theory is that most of the taxpayers in these states will see a decline in their federal income taxes and an increase their state income taxes. Time for them to look inward.
“Democrats in high-tax blue states are already plotting ways to avoid the new tax law...”
Wait, I’m confused. Haven’t the Dems and liberals always preached that the wealthy should pay more taxes?
Gotta love those ‘tax the rich’ folks, doncha?
They almost snapped their pointy heads off when they whip-sawed over the fact that they - who ARE the rich - are actually gonna have to pay more in taxes.
More ignorant progressive elitism on display.
Just before the death of actor W. C. Fields, a friend visited Fields’ hospital room and was surprised to find him thumbing through a Bible. Asked what he was doing with a Bible, Fields replied, “I’m looking for loopholes.”
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