Clobbered by new tax code, blue states — and pundits — plot their revenge

Marketwatch ^ | 01/03/2018 | Andrea Riquier

[SpeedyInTexas]

I thought the DEMS wanted higher taxes. Well, the blue states are getting what they wanted.

Seems fair to me.

[Buckeye McFrog]

And wouldn’t it require state-compelled charitable giving to a specific “charity” in order to work?

Thanks to John Roberts this is now within the realm of legal possibility.

[Lurker]

Most of them in Illinois will. Our district map has been so gerrymandered it’s not funny.

L

[Grampa Dave]

There needs to be a correction. It’s about bloody time.

Their move was a correction for them.

In a free market, real supply and demand determines the selling or rental price.

[Grampa Dave]

“State-run charities? Letting some slimy Democrap Governator compete with the Salvation Army and Little Sisters of the Poor for charity dollars??”

Only a soul less blue state Never Trumpster could come up with this terrible concept.

The problem with most charities is they are controlled and run by liberals who get most of the donations as salaries and office expenses.

[jonascord]

"Never heard of them but my kids probably did."

Ummm...

They were characters in the Beatles feature length 1968 cartoon Yellow Submarine. I'm betting you'd have to ask your dad...

Man, that was a LOOONNNG time ago.

[I want the USA back]

“making it far more expensive to live and work in those places”
Awwwww, sniff sniff, boo hoo!

And it’s not FAR MORE expensive. Frankly, I don’t give a rat’s poop.

[HombreSecreto]

And wait until a “lawyer for the poor” files suit claiming that state lotteries have to be treated the same way, with players receiving a dollar for dollar tax credit.

If a person “donates” $1,000 to the state “charity for transportation,” then a poor person of color is being treated unfairly if their $1,000 in lottery play (which helps schools...or so they claim) doesn’t result in a $1,000 tax credit (or refund if they’re low income).

Really screw with blue state finances. I’ll grab the popcorn.

[House Atreides]

“...How many will survive the 2018 election?”
******************************************
Ask us later in the year when most working taxpayers in blue states see their take home pay going up and tax withholdings going down. By the way, voting more ‘RATS into office does nothing to help overtaxation but will only make the problem worse.

[robroys woman]

exactly!

[Grampa Dave]

DEMS have all ways wanted higher taxes.

Well, the blue states are getting what they wanted.

Seems only fair.

[Mears]

“They were characters in the Beatles feature length 1968 cartoon Yellow Submarine. I’m betting you’d have to ask your dad...”

---

I was 36 years old in 1968-———too busy to pay much attention to anything-——but family.

.

[faithhopecharity]

The state as “charity” idea is a total waste of time. It will generate zero tax advantage the moment the “donor” receives the intended quid quo pro of a reduction in his state tax obligation. This is longstanding tax law.

[gunsequalfreedom]

How is the new tax code going to affect blue states? I have not been to my tax guy yet.

[PapaBear3625]

If states set up charities to fund programs, taxpayers could donate money to those charities. They could then receive tax credits applicable to their state tax levy, while still taking advantage of the federal tax benefit.

That would be thoroughly illegal. IRS publication Charitable Contributions - Quid Pro Quo Contributions states that if you get ANYTHING of value in return for a "charitable" contribution, then you must subtract the value of what you got.

[freepertoo]

Fun little movie.

[I want the USA back]

What a$$holes! The “payroll tax shift” would reduce the employee wages by the amount formerly paid in state taxes. Please tell me how that would be calculated? There is no way to calculate it.

This idea is nothing but a legal fiction. Your employer takes the money right away, when you earn it, and doesn’t give it to you. That is EQUIVALENT to you paying it yourself. Know what a legal fiction is?

And it was calculated on the invalid assumption that the payrate reflected in your current paycheck is valid over the entire year, and not just for that pay period. So if you quit your job during the year, and not Dec 31, the amount the employer took was too much, and you have no way to get it back. How do you plan to get it back? You are assuming that the employer keeps that money in escrow for you, when in reality the employer sent it to the government.

[Buckeye McFrog]

What a$$holes! The “payroll tax shift” would reduce the employee wages by the amount formerly paid in state taxes. Please tell me how that would be calculated? There is no way to calculate it.

The Dems could then counter with the claim that "you're gettin' SCROOOOOOD by your EEEEVIL Employer!", which is the sort of thing that gets them elected.

So, you see, it all works for them.

[gunsequalfreedom]

But New Jersey’s Leonard Lance was particularly vocal among blue-state Republican House members in arguing that state and local taxes should have remained fully deductible, noting that reducing that deductibility meant the tax overhaul was picking winner and loser states, curtailing federalism by interfering in local decisions...

Now there is some convoluted thinking. More correct, the FEDs are making tax policy independent of the States. To adjust the Fed tax plan to what States are doing is exactly what Leonard Lance is complaining about.

[D Rider]

Ask your Mom...Though she was born a long, long time ago. Your mother should know. Your mother should know.