Posted on 01/08/2018 1:06:02 PM PST by NohSpinZone
Their outrage at the slap from Washington is understandable; it seems hardly coincidental that congressional Republicans would target a deduction that matters most to blue states. But rather than respond with real tax reforms of their own, they’re resorting to tax-dodge gimmickry.
A case in point is the proposal Senate President Pro Tem Kevin de León (D-Los Angeles) unveiled Jan. 3 in California. De León would enable residents to contribute money to a new “California Excellence Fund” in exchange for an equal amount of tax credits — for example, a family that owed $4,000 in state taxes could contribute $4,000 to the fund and wipe out its state tax bill. They could then deduct their contribution to the fund from their federal taxable income, just as they used to do with their state tax payments. That’s because the new federal tax law leaves the deduction for charitable contributions intact, unlike the one for state and local taxes.
(Excerpt) Read more at latimes.com ...
No wonder these clowns are so hell-bent on puffing up phony gossip writers and their silly books. That's all they have. Meanwhile:
1. Companies across the companies are giving hefty bonuses to rank-and-file employees and raising their wages
2. Many companies are planning to make significant capital investments into their businesses including hiring new workers
3. Meanwhile, the party without ideas are busy figuring out tax gimmicks to justify their profligacy because they'd rather cut off their arms than to lower taxes.
Shameful, even for Commie California's abysmal moral and ethical standards.
The democrats killed the Senate filibuster for judges, and I’m certain they regret that move (I cheered at the time). If they enshrine tax evasion, they will regret that too.
So these rich libs demanding that they be taxed more.......are phonies?
Wait a minute! Under that law, can they not also claim that deduction against their State taxes? In this case, it is a circular formula error.
$100,000 income
$4,000 charitable donation
$96,000 taxable wages (for state and fed)
I suppose the state deduction may be one year in arrears. But the state would likely lose $400 to $600 in revenue for that tax payer, no?
They can’t classify a charitable income for the fed but not the state can they? Or is it a “fake charity” that people don’t actually write a check for? Of course that would be felony fraud.
Except that the IRS method of calculating "charitable" donations as the amount of the donation MINUS anything of value you receive. Like a tax credit.
It more funny than anyone realizes, because, for the “rich” here in CA, people who derive most of their income from businesses and investments, this problem is a drop in the bucket. These limits on deductability only apply to personal taxes, so I doubt that loosing a deduction on personal sales taxes, property taxes, etc. means a whole lot to them. It's only a "rallying cry" for the RATs, who have taxed and spent this state and others like it into the poor house. They are increasing "taxes and fees" for virtually everything. We own a commercial building with an elevator. Eighteen years ago, the annual inspection fee was $110, the state inspector came around like clockwork once a year, and didn't ever find anything wrong. Now that fee is $220, the guy is lucky to come out once every 18 months, and always finds something that needs "fixing." And they send you a letter giving you 30 days to effectuate the "repairs" and if your service company fails to send them a confirmation letter within that timeframe, there is a penalty of $676 assessed. This last inspection the "problem" was "cobwebs in the hoist way." The only problem was, there weren't any, because the state actually hadn't done an inspection, they just had some clerk write up something with the hope of getting more money. So I really do hope that the Fed Gov makes it very clear that CA, NY and the other NE $hit hole states, can't perpetrate this scam. I'm willing to take my chances with the new law because of what it does for the country as a whole.
everyone knows that the value received back for any ‘contributions’ must first be subtracted before entering any claims of ‘charitable contributions’
in other words, we get to deduct our real (net) charitable deductions (NOT our gross payments in event we were given something of value back for our ‘contributions’-
this has been tax law at least my entire life.
everyone knows this/
the Californcation political hacks are just posturing is all
it is all BS
A conviction would destroy both the California Legislative and Executive branches and those participating could be imprisoned.
It would even involve the California Franchise Tax Board with the "Charitable Tax Credits".
Additionally, the IRS, while investigating and Prosecuting could impound the funds and accounts involved, forcing the State into insolvency.
On the "easier to screw California" method, the IRS could pull the Tax Exempt status of the "Charitable Entities" involved and make 'em pay income tax at 20 or 21%, impounding receipts and accounts until they do, or win in Federal Court.
Who is it that gives the IRS direction, now, I forget.
this is naïve. The charitable tax status is regulated by the feds. They could deny the deductibility.
“De León would enable residents to contribute money to a new “California Excellence Fund” in exchange for an equal amount of tax credits”
purely voluntary of course ...
I don’t know why the LAT editorial board would use the term “tax evasion” here. My understanding is that the strategy they’re considering to get around the SALT deduction limit has already passed muster with the IRS and/or Federal tax courts.
“The American Liberal.... 10 degrees left of center, until it directly affects them, then suddenly they are 10 degrees right of center”
And red states know their pockets are being picked to shower riches on illegals.
It looks like a dodgy scheme to me. The IRS does not usually rule on tax schemes in advance. How was this allegedly approved?
Just remember the Democratic Party has become the Party of Saul Alinsky i.e., Communists...there is no Democratic Party left like 40 years ago; the GOP Elitists were almost successful in destroying their own party to keep the Clinton Crime Family in power....follow the money from Clinton's to Lobbyists to uranium sales, money laundering for both parties and and Liberals who would rather have a crook as first female pres. of the U.S. than an American success story to lead them.
The Politically Correct and The Swamp are synonymous...don't elect or reelect those slimy ____ fill in the blank!
Currently there is no tax exempt organization called California Excellence Fund. Do you think that the IRS would grant tax exempt status to any such group?
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