Posted on 12/15/2017 7:55:38 PM PST by KingofZion
Limiting the SALT deduction could affect as many as 6 million Californians—one of every three taxpaying households in the state, according to Michael Cohen, director of the state Department of Finance. The average deduction for property taxes is about $6,000, he has told the state congressional delegation, and the separate deduction for state and local income taxes comes to nearly $16,000 per return.
One option that could be considered by the Legislature would be to redefine state and local taxes as charitable contributions, which remain fully deductible under the GOP tax proposals. The idea isn’t as implausible as it seems: The Internal Revenue Service and federal courts have ruled that government entities can count as charities for the purpose of the charitable deduction, even when the donor receives a full state or local tax credit in return.
Indeed, legislators in Sacramento already are working on a plan to give taxpayers the option of making charitable deductions to state government and taking a tax credit. [SNIP]
California and other states already have similar systems in place, Stark told me. California’s college access fund grants a 50% state tax credit for contributions to the Cal Grants program, which aids low-income college students. The program, which this year was extended through 2023, hasn’t been especially popular—although a maximum of $500 million in credits is available each year, only $5.4 million was claimed in 2016, the latest year available. That’s probably because the 50% tax credit isn’t very alluring, and only AMT taxpayers would find the credit to be of any use, Stark says....
(Excerpt) Read more at latimes.com ...
??? I thought the federal income tax system as we know it started in 1913, via constitutional amendment allowing for it?
Taxes as a charitable deduction? Well I would have never believed mandatory health insurance would be declared as a tax by the supreme court.
Pass the popcorn!
These people are nuts. Isn’t charity voluntary? If state taxes are now a charity, they should be voluntary as well. Right?
BkMked.
This is genius, and a big F U to the anti-California communists who want to redistribute our wealth.
One option that could be considered by the Legislature would be to redefine state and local taxes as charitable contributions
That’s tantruming leftist crazy talk. And you “love it”? Ok.
The state can do what ever they want, the feds don’t have to abide by state laws.
These people are nuts. Isn’t charity voluntary? If state taxes are now a charity, they should be voluntary as well. Right?
Yep. POTUS has driven them insane. LOL.
CA shows its insanity once again.
Cool! Can I simply decline to make my “charitable contributions” to California and Santa Clara County? That’s far better than deducting those “contributions” on my 1040.
Well you’ll be given a choice, you can voluntarily give the state a charitable contribution equal to what you would pay in income tax, or involuntarily pay the income tax.
If a man can simply declare he is a woman anytime he wants and if we can declare two homos are “married” then why shouldn’t we be allowed to declare taxes are “charitable contributions.” We can be “definitional fluid” any time we want. It is the zeitgeist, after all.
I suppose it all depends on what the meaning of “is” is.
You have it totally backwards!
SCOTUS would strike it down. Atleast I hope they would by a 5-4 vote.
I’ve got an idea, CA can lower their damn tax rates!
Another option is for the non-liberal residents to move.
Why are conservatives cheering greater aid for corporations?
They are primarily responsible for destroying traditional values and enforcing PC culture.The big ones are led by Liberals.
F**- em’.
Truly one of the great mysteries of this abortion of a tax bill. Freepers have been cheering on tax increases for millions of middle class individuals, and a massive rate cut for Facebook and Google.
I wonder how many Republican congressmen from California will be returning in 2019. Or from New York. Or from New Jersey. Or from Illinois.
Ummm, maybe because most of us have jobs and wish for continued employment.
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