Posted on 01/05/2018 6:55:15 AM PST by MNDude
A California Senate leader introduced legislation Thursday aimed at circumventing a central plank in the new Republican tax law, introducing a model that — if successful — could be replicated across the country.
California Senate President Pro Tempore Kevin de León (D) introduced a bill that would allow taxpayers to make a charitable donation to the California Excellence Fund instead of paying certain state taxes. They could then deduct that contribution from their federal taxable income.
(Excerpt) Read more at washingtonpost.com ...
Yea, because the state is a recognized federal non profit? Hahaha try again nutters
Tax break for the rich!!!!!!!!!!
Tax break for the rich!!!!!!!!!!
Tax break for the rich!!!!!!!!!!
Russia, Russia, Russia
3) Charitable donations are not deductible unless you itemize, which with the higher standard deduction is expected to shrink from 30% of filers today to as low as 10% under the new law.
At some point Trump is going to have to deal with California. I’m talking Army,Navy, Air Force and Marines. And jail for a whole lot of treasonous hispanic leaders and a relic liberal from the 70s. Enough is enough of this rogue state.
Doesn’t he agree that Californians should pay their fair share?!?!?
Wouldn’t they need to specify that donations go to ANY charity to remain legal. To whom would you rather donate ? Drug-induced, money-burning legislators... or your church or Red Cross down the road.
I don’t think a reasonable court will let it fly.
—
California does not have reasonable courts ...
What this is really about, IMHO, is that these states fear an exodus when the pain of high taxation starts to bite their residents. Instead of addressing the issue honestly, the politicians resort to (possibly illegal) chicanery--although that's nothing new for leftists.
CA should get their own country and stop messing mine up.
How is that not laundering or at least fraud?
Exactly!
That's the rationale behind all this; classify the state as a charity. Good luck with that. I hear the phones ringing now at the U-Haul center. Head east young man, head east.
....which raises another concern as more and more flee California. Do they bring their politics with them ? One would think those leaving oppose much of what we don't like about California; high taxes, regulations, etc
Don’t think any but the most progressive court would agree. A debt is a debt. One cannot pay part of a debt and then contribute the rest voluntarily.
If the debt is divided into two parts, an involuntary amount derived by a formula ( like property taxes are) then the other part then declared due via “contribution”, one could lawfully pay the first part and refuse to “contribute” the latter.
Like snowballs in hell, it “aint gonna” happen!
Sounds like a George Costanza creation.
A lot of the comments here seem to overlook an important consideration here: that the general approach California is looking at has already passed muster in a Federal court case some years ago.
“could serve as national boilerplate for skirting Trump’s tax law”
Ok, you go ahead and try that in a non-commie state, and see how you will “skirt” reelection.
Xavier Becerra and his team of imported legal eagles are providing top-notch legal advice.
Hope this group has an accurate image of the hard drive on their server. /sarc
Why not California DACA Fund and let them absorb all DACA individuals and their “chained “ relatives!
Trump should push a law, all DACAs have free sanctuary in Califreeka. Go there or go “Home”!
de Leon must be a real Ponce.
From the article, “De Leon’s office said that one-third of taxpayers, about 6 million people, itemized deductions on their tax returns and claimed an average of $18,438 for state and local taxes.” So he has mixed in real estate taxes, which remain deductible with the capped state income taxes? If so, then that 6 million number is probably greatly reduced.
So let’s say that this “charity” scheme is implemented and average taxpayer from his 6 million make an $8,438 donation. At best, the taxpayer gets a reduction in taxable income at the maximum bracket rate of 37% or a reduction in federal income tax of $3,122.06. And yes, that would be an incentive to contribute, no avoiding that. It does assume their charitable contributions are not capped (at 60% of AGI), which would reduce the benefit. They are still out $5,315.94.
And that all presupposes the “charity” passes muster. Wouldn’t it be special if the application languished in IRS review for a couple of years á la Lois Learner. Further, the “charity” will probably be run as a slush fund (think Clinton Foundation), buying votes with distributions, buying special access, favoring one class over another, with far less voter control than they would have over legislated distribution schemes. Not to mention lucrative salaries for the ex-pols who would run this slush fund.
And no, de Leon, when you say “The Republican tax plan gives corporations and hedge-fund managers a trillion-dollar tax cut and expects California taxpayers to foot the bill” what has really happened is that the rest of the country is no longer subsidizing your extortionate tax scheme by letting your fat cats pay less than their “fair share” by writing it all off.
Finally, corporations are a pass-through entity. Taxes they pay are included in their pricing to their customers. Reduce their tax burden and the pressure to reduce prices in a competitive market should take care of that.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.