Trump tax cut leaves blue states bluer, but they do have a way out (SALT sends NY, CA scrambling)

The American Spectator ^ | 05/04/2018 | HUNT LAWRENCE AND DANIEL J. FLYNN

[SeekAndFind]

High-tax states face a choice: reduce taxes or lose taxpayers.

Stephen Moore and Art Laffer forecast in the Wall Street Journal the loss of 800,000 California and New York residents over the next three years. The exodus, the economics experts say, comes because of the tax bill, which limits the state and local tax (SALT) deduction to $10,000, passed in December. Previously, the feds forced no monetary limit on filers.

California taxes individuals earning $1 million or more at a rate of 13.3 percent. New York levies an 8.8 percent rate upon individuals making a similar amount of money annually. In the past, the federal government in effect incentivized higher taxes at the state level by allowing filers to write off state taxes. By limiting this deduction to $10,000, when millionaires theoretically pay more than ten times or more that amount in state income taxes,

Congress refuses to continue granting tax breaks for those least in need of them and to states effectively empowered to do so by the limitless nature of the SALT deduction in the past.

Along with California and New York, states such as Oregon, Iowa, Minnesota, Vermont, New Jersey, and Hawaii, which also boast income tax rates above eight percent, face a tax-hike flight. A certain percentage of their inhabitants, common sense dictates, find the prospect of surrendering tens or hundreds of thousands of dollars of income to their state governments intolerable, and move to states with less draconian rates.

In fact, something along these lines already occurs. Anyone with a cursory knowledge of the differences in the tax climate across states can compare Electoral College maps from, say, the 1950s onward to see the declining political power of New York and Massachusetts — long ridiculed as Taxachusetts — and the rise of Texas and Florida,

[mewzilla]

Except that prop tax money isn’t going to schools, is it? It’s going to pensions and health bennies...

[mewzilla]

How can other states manage? Take a good look at their budgets. A lot of them aren’t. And the ones who have moved or are trying to move to a defined contribution system are coming in for a ration of excrement from unions and their uniparty pols.

Only advice I can give, and I hate to say it, is own the least expensive home you can bear to live in if you’re fortunate enough to have a choice.

[NonValueAdded]

comes because of the tax bill, which limits the state and local tax (SALT) deduction to $10,000, passed in December. Previously, the feds forced no monetary limit on filers.

Why are the RATs complaining??? Doesn't this capping of certain itemized deductions get those fat cats closer to paying their "fair share?" /s

[dragnet2]

If the taxes as so great, why ya sellen?

[Kickass Conservative]

I thought Liberals thought the Rich should pay their Fair Share. Why are they complaining?

[dragnet2]

We spend very little $ on heat or AC in CA and the weather allows us to grow much of our food. That alone is worth a small fortune makes up for many of these criminal taxes in CA.

With near perfect weather year round and so much to do, I'll be staying in CA and will continue efforts to destroy these leftist. I've lived in nasty weather states and venues. It's just not for me!☺

[RGF]

Sounds like your sibling can never actually “own” their house, they are just renting it from the state at $25 K / year. It’s about that bad in Texas as far as property taxes go, maybe worse.