Ivanka in Bayville: Tax reform will be the law of unintended consequences | Mulshine

Star Ledger ^ | 11.14.17 | Paul Mulshine

[Coleus]

-snip-

But let me focus on one historical instance of a tax-reform plan gone wrong. That was pointed out to me by my old high-school buddy Jim Byrnes, who was just re-elected to the township council of Berkeley Township, which includes Bayville as well as a chunk of oceanfront across the bay.

It concerns big boats. Back in 1991, President George "Read My Lips; No New Taxes" Bush signed into law a bill meant to reduce the deficit by imposing a 10 percent "luxury tax" on yachts costing more than $100,000. What Bush forgot is that yachts really are a luxury - and people stopped buying them. That meant that Viking Yacht, a boat-builder down Route 9 a bit in New Gretna, had to lay off pretty much its entire work force.

"They used to hire every electrician that graduated from the county college," Byrnes said. "They were all laid off."

A study showed that a total of 7,600 boat-builders were laid off, with unemployment costs to the treasury that far exceed any tax revenues. Before long, that luxury tax was repealed and the workers rehired.

Byrnes said he expects to see his town take an even worse hit if this tax package goes through as written. That's because the reform could restrict the deductibility of property taxes to $10,000 a year - or even zero in the Senate version - and of mortgage interest to the debt service up to $500,000 on new purchases.

The House and Senate versions differ on which other deductions would be allowed, but both exclude the state income tax. Without a deduction for the income tax, only a very small percentage of filers would find it advantageous to itemize.

[House Atreides]

Wahhh...wahhh...wahhh. More whining about tax subsidies going away,

[immadashell]

Congress Critters in action. Flat Tax is the ONLY fair tax.

[ichabod1]

What does this have to do with Ivanka Trump?

[immadashell]

Simple solution: stop paying property tax. Give the money to charity, give the money to someone to buy your foreclosed house at auction for a fraction of its assessed value. Give the money to anyone except a government. A tax revolt is the only way to control these fiscal idiots.

[Revel]

“What does this have to do with Ivanka Trump?”

Not a dang thing as far as I can tell. Click bait?

[Coleus]

What does this have to do with Ivanka Trump? >>

She gave the talk.

[Billyv]

Would that be fair as in just, or a facade, an imitation, or just something that looks like the real thing, an imitation? Fair is a word with several meanings only one of which is just. The only truly just tax is a per citizen tax, the same $ for every breathing soul. A family of six would pay six times the amount of a single person. No distinction based upon income or property.

Taxes are a necessary evil, those necessary evils at a national level are defined in the constitution, all else is an abuse of power.

[lightman]

Kill the tax shift (shaft) bill ping!

[lightman]

With fewer taxpayers able to itemize, the incentive for charitable giving will be wiped out.

Why bother to give to The Salvation Army or any other charity if the IRS is crediting you as though you had given $24,000,00?

[lightman]

The “unintended consequence” of this tax shifting/shafting bill is that donations to non-profits will plummet after April 15, 2019.

[SkyPilot]

Wahhh...wahhh...wahhh.

Our resident Pericles shows up to demonstrate his wisdom, maturity, and oratory skills.

[SkyPilot]

Of course this bill will have unintended consequences.

Many Freepers who are cheering this tax increase on are in for a BIG surprise.

I am old enough to remember George Herbert Walker Bush's "luxury" boat tax. It did wipe out the boating industry in the US - along with tens of thousands of direct jobs (most of them blue collar), not to mention many small businesses that were boat manufacturer suppliers who laid of thousands of worker. It also inflicted a great deal of economic pain on marinas and restaurants - the "benefits" of that tax just rolled down hill.

Even if the Senate allows for some deductibility on property taxes (as the House bill does), that will have unintended consequences.

http://nymag.com/daily/intelligencer/2017/11/how-the-gop-plans-to-get-its-tax-bill-out-of-the-senate.html

Because state and local taxes will still not be deductible, and tax payers will be horribly squeezed by both the Feds and at the local level, the States will respond by jacking up property taxes even more. They will argue that "at least some of that is deductible in the GOP tax bill."

Even National Review acknowledged this fact.

Further, if the GOPe removes the hypocritical and political nightmarish provision that corporations (who are already getting a HUGE tax cut in this bill) are no longer able to also deduct their SALT taxes, that still won't help individuals. Instead, the Senate is planning on using that additional revenue on the business side - again! They want to feed the money to S corps, LLCs, and other "pass throughs." Again, no one cares about the middle class.

And here is how short sighted (and frankly, stupid) many Freeper are:

Senators ponder automatic tax increases if revenue falls short

Well, revenues probably will fall short. I don't think these tax cuts will bring the "growth" they believe, because many corporations are not going to "re-invest". Many are simply going to use the cash to buy back their own stocks.

The Moment Gary Cohn Realized His Entire Economic Policy Is A Disaster

So AFTER they take away your deductions - FOREVER - they will then implement "Automatic" tax increases as revenues do not keep up with what was "Projected."

And they won't even have to vote on that - it will be in the new Tax Law!!!

And most Freepers are buying this load of manure Tax Bill lock, stock, and barrel.

[Incorrigible]

As one of the people living in Liberal occupied New Jersey, I’m somewhat sympathetic with this bill. New Jersey, New York and California vote for very few Republicans. Further, the people they vote for always look to increase taxes on the wealthy. Well, now they’re getting what they voted for. The SALT deduction made it possible to live in high tax states with little demand on statewide politicians. People with second homes on the Jersey shore will be adversely affected but that’s the breaks for voting for Hillary.

Politically this tax bill rewards Trump voters and punishes Hillary voters. That’s a good thing even if us few Trump voters get caught on the wrong aide of the line.

[kearnyirish2]

I don’t think anyone in the high-tax states like NJ or NY are falling for this; our government worker castes are so entrenched they won’t even cut back when we lose population (and House seats) - they certainly won’t care if people are driven into bankruptcy by this. It won’t do anything to the state budgets; they’ll just auction off foreclosed homes if we don’t raise their money.

[Salvey]

Politically this tax bill rewards Trump voters and punishes Hillary voters. That’s a good thing even if us few Trump voters get caught on the wrong aide of the line.

This fellow New Jerseyan agrees with you.

[combat_boots]

Steve Daines is a no vote (Montana)

Cuts for small business are too small

[lightman]

This Trump voter from a high tax swing state which tipped the scales for DJT is facing a $7000.00/year tax increase from this bill.

Think PA will ever vote GOP again?

Some “thanks”.

[SkyPilot]

This bill will have terrible consequences for your state (NJ). Not only will it affect home prices, but middle class families are going to be squeezed between state, local, and property taxes on one side; and higher Federal taxes on the other. There are millions of Trump supporters in states like MA, NJ, NY, CA, IL, and others. This bill stabs them in the neck, and violates Trump’s campaign promise to bring tax relief to all middle class American’s. The “forgotten” middle class as he called them.

I cannot for the life of me fathom how or why either of you would support this bill. Is there some tax benefit to a business, corporation, or other avenue to you personally that would come with this bill that you have not shared?