Posted on 07/09/2011 1:19:44 PM PDT by Clairity
Despite all the talk about curbing tax breaks for corporate jets and big oil companies like Exxon Mobil and Chevron, the largest dollars in President Barack Obama's proposed deficit-reducing tax hikes ($293 billion over ten years) come from limiting the value of itemized tax deductions claimed by the better off.
While it's gotten little notice on the mainland, Obama's birth state has just raised its taxes on the well off in much the same way. Last month, Democratic Governor Neil Abercrombie signed S.B. 570, making Hawaii the first state in the nation to place a dollar cap on the itemized deductions that better off taxpayers can claim.
For 2011 through 2015, singles in Hawaii with adjusted gross income above $100,000 will be allowed to claim a maximum of $25,000 in deductions for mortgage interest, charitable giving, medical expenses and the like, while couples with AGI above $200,000 will be allowed no more than $50,000.
(Excerpt) Read more at blogs.forbes.com ...
This is basically eliminating the mortgage deduction -- that will help the real estate market! (/sarcasm). It will help it crash completely, because people bought their houses based on what they can afford, figuring in the tax break, and if that is eliminated, all of a suddent, they won't be able to make their mortgage payments, so there will be many more foreclosures.
Look for lots of hard working people to leave the state of HI for better opportunities elsewhere.
Same as when the income tax started. It was supposed to be a tax on the top 1% ONLY.
Now look at what we have, a tax code that is so effing huge and riff with laws that NOBODY can escape.
It's way past time for a revolution!
They have a problem being thieves and non productive burdens on the producers.
Hawaii is one of the most LEFTIST states we have....GOOD....they are getting exactly what they deserve for electing these DEMOCRATS!!
And if Obama and the Dems hike taxes in the US, the “rich” are the most mobile, they WILL leave the country, leaving the Dems to try to squeeze more money from the rest of us.
People need to focus on defeating Obama and the Dems in2012.
I was looking at that number and thinking of all the single federal employees working for the military that are going to be super-screwed.
And mortgages in Hawaii are ridiculously high for what amounts to shoe boxes.
Next the state will wonder where all the rich haoles went.
If Hawaii soaks its rich citizens before Obama gets to them, how will poor POTUS *ever* get this deficit thingie fixed?
And it is much harder to vote with your feet when you live in Hawaii.
Somebody help me here. I haven't had opportunity to donate a billion dollars recently, but it was my understanding that the entire amount would be a deduction against taxes.
Wouldn't the loss of that deduction, especially if the billion was raised through sales of equities not yet taxed, increase the burden of the giver from one billion dollars to 1.3 billion dollars or so?
Are the liberals really trying to claim that charities will not suffer if the cost of giving a billion dollars rises by 30%?
Whatever it is that Bill Gates is willing to give up, if the amount that must go to the state increases, how will the amount given to the charity not decrease?
The effect of this law will be to impoverish Hawaii. Working people who can leave will do so, very wealthy people will stay but find ways to hide their income outside of the state, and revenues will crash. The people of Hawaii won't learn anything from the debcale (they never have) and the libtards will redouble their efforts.
In Hawaii, $100,000 isn't a lot of money, and if you have a serious medical emergency $25,000 is a very low cap on deductions. So much for "rebuilding the middle class," or "compassion."
When I used to live in that part of the world 20 years ago they were very protective of Hawaii to the point of extreme racism. I saw it as protectionist and it was fine by me, but they have now gone way past protecting their turf and have become lazy and needy by demanding haole’s money. Hell, most of the “Hawaiian’s” are of Japanese or Pilipino blood anyway.
Yes, the truly rich are mobile, but a Leftist’s definition of “rich” (someone not already on welfare) often is NOT mobile. A person making $100,000 in Hawaii is not likely to be able to pack up and move to the mainland or anywhere else on a dime.
These folks will just have to go broke in place.
Which, come to think of it, is really what these Communists want: to destroy the middle class and make everyone, except their little clique, government slaves.
The really scary thing is that this is what Obama wants to do to the whole country.
Destroy real estate, and the economy completely, destroy charities, so everyone will be dependent on the government.
“the largest dollars in President Barack Obama’s proposed deficit-reducing tax hikes ($293 billion over ten years) come from limiting the value of itemized tax deductions claimed by the better off.”
The people who are most likely to vote with their feet are also most likely to be able to afford to do it, though. The poor saps who will lose their jobs as maids, cooks, etc. to the wealthy, yeah, they’ll be stuck. But they’re also the ones who keep voting these redistributionists into office, too.
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