Democrats in high-tax states plot to blunt impact of new tax law


#1

One proposal would replace state income taxes, which are no longer fully deductible under the new law, with payroll taxes on employers, which are deductible. Another idea would be to allow residents to replace their state income tax payments with tax-deductible charitable contributions to their state governments.

Kirk Stark, a law professor at the University of California, Los Angeles, has suggested that states encourage residents to donate money to their state governments, then let the governments credit those donations against their state income taxes. Such donations would qualify as charitable donations, which are still fully deductible on federal taxes.

Another idea would be for states to partly or completely replace their income taxes with payroll taxes paid by employers, similar to existing taxes for Social Security and unemployment insurance.

“They want to target us for certain provisions?” Mr. Cuomo asked at a recent news conference. “Well, let’s see if we can redesign our tax code to get out of the federal trap that they set.”

And none talk about cutting state spending. All talk about subverting the tax system, everyone should try it if the states can do it, everyone can. If you want personal time with the IRS.

One has to ask, why are taxes in NT/California/NJ higher than the rest of the country?

Time for a tax system with no deductions, period.


#2

Well, the whole meme about red states getting all the money is coming home to roost. I think that calling a state tax a charity however is little different that the democratic chorus about red states…