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As Caps on Federal Deductions
Begin, High-Tax States
Seek a New Scheme

PJ Media, by Tom Knighton

Original Article

Posted By:Hazymac, 1/3/2018 9:30:30 AM

For many, there are few things quite as enjoyable as watching high-tax states kvetch that the new GOP tax plan caps deductions on federal tax returns for state and local taxes. Taxpayers in other states have long subsidized the spendthrift ways of states like California and New York. Those states could always sell yet another tax increase to their citizens, who knew they could deduct the increase on federal returns. But those days are over, and high-tax states are scrambling to figure out how to keep having their cake and eating it, too. The New York Times reports: "One proposal would replace


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Reply 1 - Posted by: Jethro bo, 1/3/2018 9:55:20 AM     (No. 11498452)

Suing the Feds for a change in a tax deduction? No doubt some Obambi or Clinton or Carter appointed Black-robed Demigod will say, sure, the mean old Feds can´t do that. Love the ´charitable´ deduction for paying a tax. Wish we could get taht in flyyover country.

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Reply 2 - Posted by: Mushroom, 1/3/2018 9:55:22 AM     (No. 11498453)

The discontinuance of the ability to deduct credit card and loan debt created the Second Mortgage, so why wouldn´t the States find another way to squeeze more out of them?

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Reply 3 - Posted by: miceal, 1/3/2018 11:05:06 AM     (No. 11498559)

Heaven forbids they should cut spending and lower their own taxes...

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Reply 4 - Posted by: skeptical1, 1/3/2018 12:24:50 PM     (No. 11498652)

I´m not buying the argument that the old rule was a "subsidy" of blue states by red states. Incomes tend to be higher in blue states, so even after they are trimmed by state taxes, the net federal amount is still higher. Wikipedia has a list of IRS revenue per state, and those that were highest in 2015, on a per capita basis, were mostly blue (but not 100% blue). California and Texas´s per capita contribution to the IRS was about the same.

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Reply 5 - Posted by: Davids918, 1/3/2018 12:52:13 PM     (No. 11498678)

#3, or improve the business climate to grow the economy to create more revenues.

California will live on the new marijuana tax revenues they will obtain, for a little while, until they spread that around and don´t have anything left, then ask for more taxes, again.

The new gas tax of 12 cents per gallon is already spent, and only has enough to fix some of the roads, but not improve any of the, or add any new roads.

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Reply 6 - Posted by: FL_Absentee_Voter, 1/3/2018 1:49:25 PM     (No. 11498747)

#5 - But as promised, education in California is fully funded through lottery revenues. /s

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Reply 7 - Posted by: dvc, 1/3/2018 2:25:13 PM     (No. 11498811)

If tax payers in high tax states pay less in federal taxes than someone who has otherwise identical earning and situation in a low tax state that is a fundamental wrong. Federal taxes should be exactly equal for all in the same situation.

And because they pay less federal tax than they should if treated equitably, the other states are effectively paying more than their fair share - which has the effect of subsidizing the high tax state.

The lower federal tax bill is wrong, and evening it out is fair. Federal taxes should have nothing whatsoever to do with state taxes.

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Reply 8 - Posted by: Rumblehog, 1/3/2018 8:46:11 PM     (No. 11499254)

Sooner or later they run out of other peoples´ money... like now.

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