Read entire CNBC story here.

"Democrats in high-cost, high-tax states are plotting ways to do what their states’ representatives in Congress could not: blunt the impact of the newly passed Republican tax overhaul.

Governors and legislative leaders in New York, California and other states are considering legal challenges to elements of the law that they say unfairly single out parts of the country. They are looking at ways of raising revenue that aren’t penalized by the new law. And they are considering changing their state tax codes to allow residents to take advantage of other federal tax breaks — in effect, restoring deductions that the tax law scaled back."

One of their ideas is to screw around with their state income tax law so the state income tax paid becomes a charitable contribution to the state, and hence federally deductible.

I don't see how a state could be a "qualified charitable organization" as defined by the IRS.

I think they are just blowing smoke, and if not, might just be stupid enough to go up against the attorneys at the IRS.

love it

let 'em squirm and allow the people to see who they really are

I thought the rich weren't paying their fair share...Now the Dems are helping them to avoid paying more?

quote:

Originally posted by ChicagoSigMan:
I thought the rich weren't paying their fair share...Now the Dems are helping them to avoid paying more?

Right, I thought you could still deduct, but it's just capped now.

how much do you have to make (in a high tax state) to exceed the cap of what can be deducted?

High tax liberal states are worried that if their high taxpayers will no longer be able to deduct state taxes on their fed tax return, such taxpayers will move their money to other states with no or lower taxes, and states like CA will lose revenue.

Pretty sure the IRS is going to figure these schemes out.

“If you don’t care enough to cheat, you don’t care enough to win.” God Damned Commie motto

quote:

Originally posted by Scoutmaster:
High tax liberal states are worried that if their high taxpayers will no longer be able to deduct state taxes on their fed tax return, such taxpayers will move their money to other states with no or lower taxes, and states like CA will lose revenue.

Aside from moving to a state like WA, TX, etc., how are they gonna move their money out? You owe income tax for the state you reside (and sometimes just work) in.

Well, if they make the state income tax a “charitable contribution” it would follow that the tax is voluntary no?

They can all kiss my old white butt!

quote:

Originally posted by mikeyspizza:
One of their ideas is to screw around with their state income tax law so the state income tax paid becomes a charitable contribution to the state, and hence federally deductible.

I love this idea. We make charitable contributions every year, focusing on charities that make the most positive impact in the community. The thing is, charitable contributions are optional. If they turn state taxes into charitable contributions then the money that I would have had to send to the state will be sent to a real charity that will actually do good with it instead of pissing it away. Rock on CA.

quote:

Originally posted by radioman:

quote:

Originally posted by Scoutmaster:
High tax liberal states are worried that if their high taxpayers will no longer be able to deduct state taxes on their fed tax return, such taxpayers will move their money to other states with no or lower taxes, and states like CA will lose revenue.

Aside from moving to a state like WA, TX, etc., how are they gonna move their money out? You owe income tax for the state you reside (and sometimes just work) in.

People at that level of income usually have multiple business arrangements that can be structured in a way to minimize various state taxes IF there is sufficient motivation.

Edited to add: If a state like CA is projecting a notable hit on state income taxes, they have plenty of motivation to screw the rest of the people who don't have the flexibility and resources to avoid state income taxes. Problem is, the worse you bite the people, the more ways they find to change their affairs.

And how can you be forced to donate to a charitable organization?

Love seeing them squirm and whine tho.

quote:

Originally posted by 911Boss:
Well, if they make the state income tax a “charitable contribution” it would follow that the tax is voluntary no?

That's what I was wondering as well. Charitable contributions are not mandatory, and there are limits as to the amount of deduction that can be taken.

Mandatory charity - only in a Liberal mind is that not an oxymoron.

quote:

are worried that if their high taxpayers will no longer be able to deduct state taxes on their fed tax return

No, what they will do is start demanding that the politicians start cutting costs and reduce those taxes. They are seeing that in NJ. I believe up to 10k is still deductible.

quote:

Originally posted by rscalzo:

quote:

are worried that if their high taxpayers will no longer be able to deduct state taxes on their fed tax return

No, what they will do is start demanding that the politicians start cutting costs and reduce those taxes.

This, and hopefully it will have the intended consequences.

Residents in those high tax states are getting raped without even getting the common courtesy of a reach-around.

quote:

Originally posted by rscalzo:
No, what they will do is start demanding that the politicians start cutting costs and reduce those taxes.

And Jesus is coming back too, I wonder which will happen first.

People are fleeing NY en masse, someone has to make up the tax loss, they're not going to do that by lowering taxes.

No. The state gets grants from the feds for state functions, which are more and more controlled by feds anyway.

Fed taxes go up, state taxes disappear, and everyone pays for the profligacy of the God Damned Commies. Single payer state government!

quote:

Originally posted by cas:

quote:

Originally posted by rscalzo:
No, what they will do is start demanding that the politicians start cutting costs and reduce those taxes.

And Jesus is coming back too, I wonder which will happen first.

People are fleeing NY en masse, someone has to make up the tax loss, they're not going to do that by lowering taxes.

Look at Illinois. They lost their bond rating. Eventually they won’t be able to borrow another dime. The music will stop eventually. Just not sure what happens next.

I never understood why low tax/fiscally responsible sates should subsidize high tax/irresponsible ones. You want freebies, pay for it yourselves.