[Jim Robinson]

But it’s not a contribution or gift if the state decides the amount and forces you to pay it.

[shawnlaw]

True dat, but the states will probably create returns that give the taxpayer the option of paying a tax of X% and gift to the state of Y% similar to the check the box elections for contributions to the election fund or pay Z% in tax with no deduction.

The choice is voluntary on the part of the taxpayer and the circuit courts in each jurisdiction with this scheme will most likely allow it. Tax court and SCOTUS may hold differently and ultimately the Congress would change IRC 170 to exclude “gifts” and “contributions” that are related to the states taxation of its citizen. It’s going to be a fun year for us tax lawyers!

popcorn please...