Posted on 03/12/2019 7:25:36 AM PDT by SeekAndFind
THE PROBLEM CALIFORNIA FACES:
With an average “SALT” bill of $18,438 in 2015, the ability to deduct all SALT payments saved the average Californian about $4,000 in federal taxes. But implementation of the TCJA for the 2018 tax year is expected to cost the average Californian $1,800.
According to the Cleveland Federal Reserve Bank, the resulting higher tax payments will also have a negative wealth effect of about 7.9 percent on California home values.
A Sacramento Bee study based on U.S. Census data found that about 130,000 more residents left California than arrived from other states in 2017.
The Newsom administration is afraid the combination of higher effective federal tax rates and falling home values will accelerate the “negative net domestic migration rate,” as very wealthy Californians “vote with their feet” by moving to low-tax states.
Gee, how’d THAT happen?..........................
Mexifornia’s future is Venezuela.
But perhaps the big one will speed things up.
Choke on it Newsom....more illegal alien votes you cannot support.
It seems most of us did not learn the lesson of 2009.
Anybody who goes to the U.S. Congress with a sufficiently butt-puckering Chicken Little tale of impending terror and doom WILL get a bailout. Regardless of how widely that is opposed.
The threatened collapse of our largest state would surely do the trick.
Taxpayers leaving and illegals don’t pay taxes but are supported by remaining taxpayers.
As California (and other high-tax states) have the massive federal subsidy of their taxes eliminated, their taxpayers will make attempts to minimize/avoid those taxes. Flipping the old axiom: If you STOP SUBSIDIZING something, you’ll GET LESS of that something. It’s an old TRUTH.
Wasn’t CA just bragging about all the rich people moving on to take the place of the middle classers moving out?
Yeah, it's one thing to get the votes - quite another when they demand to be paid for their loyalty and there is no one left to loot.
As a Tennessean, not having to have my federal taxes go to California is a relief
NY, CA, IL - all looking at budget gaps and huge liabilities - even though the economy is doing well, and stock markets are near all-time highs.
Their progressive uni-party states are completely out of control
One silver lining of the next financial crisis - these leftist places will be brought to their knees.
Trumps greatest act was making it impossible for rich californians to deduct california income tax from their federal income tax. Genius!!!
Sounds like grounds for a tax increase.
“As a Tennessean, not having to have my federal taxes go to California is a relief”
CA’s net overage of Fed taxes pays Tennessee’s net under payment.
Tennessee receives more in Federal expenditures than it pays in taxes. CA pays more in Fed taxes than it receives in expenditures.
Tenn has never subsidized CA.
Just wait, we’re going to have to bail out NY and CA. How about tell them we will bail them out if they lose half their electoral votes.
With individual red vs. blue state comparisons this is true. But I'm thinking that if California residents must pay more federal income taxes because of the elimination of some SALT deductions, then whole groups of states WERE subsidizing California and others. Those federal income tax dollars were made up somewhere before California residents had to pay them.
CA has paid more in Fed taxes than it received in total Fed expenditures since WWII.
Every year.
How can you equate that with subsidy by other states, when the very opposite is true?
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