Posted on 05/10/2018 9:22:19 AM PDT by SeekAndFind
On December 22, 2017, President Trump signed a massive tax cut and reform bill crafted by Republicans without the help of one Democrat vote.
One of the bill’s more controversial measures was the limitation of the state and local tax (SALT) deduction to $10,000 through 2026. According to the CPA Journal, taxpayers in California, New York, New Jersey, Illinois, Massachusetts, Connecticut, and the District of Columbia lose the most by the limitation of the SALT deduction. That said, most taxpayers will see their federal taxes reduced, even in high-tax states.
Tax laws, as with the regulatory compliance burden and lawsuit climate, inform business decisions. Money follows earnings. People invest to maximize their returns. Business owners, to the extent they can, look for opportunities to grow their operations and maximize profits.
Now that many small business owners and investors have had a few months to digest the reality of the Trump tax cut and its SALT limitation, it appears job creation is accelerating in low-tax states relative to the high-tax states most affected by the tax law change.
Comparing the most-populous 15 states, there are five high-tax states and ten low-tax states. California, New York, New Jersey, Illinois, and Massachusetts comprise the largest high-tax states. The low-tax list is: Arizona, Florida, Georgia, Michigan, North Carolina, Ohio, Pennsylvania, Texas, Virginia and Washington.
In 2017, the ten low-tax states saw seasonally adjusted nonfarm private industry job growth of 1.78% . The five high-tax states saw their non-government employment rolls grow 1.66% in 2017, not statistically significant from the low-tax states. National seasonally adjusted nonfarm private industry job growth was 1.73 percent in 2017.
The first quarter of employment data from the U.S. Bureau of Labor Statistics is beginning to show a significant divergence in employment growth between the low-tax and the high-tax states.
(Excerpt) Read more at foxnews.com ...
More WINNING! Nope, still not tired of it !
Good, informative article.
Good. The unlimited SALT deduction was welfare for blue states who run their local governments into the ground. SALT subsidized high-tax state and local governments at the expense of the federal budget and taxpayers from low-tax jurisdictions.
Yes...the static fanatics who called Reagan a dunce are going to have to come up with a new tune! Massive migration from commie states due to businesses moving to low tax havens will strip the liberals of their congressional power in the long run!
I’m wondering when the economy will improve to the point that Maryland reduces taxes on workers and retirees...not holding my breath, but I retire in about two years, and I’m sure hopeful!!! By the time I retire, my income will be seriously slammed by Maryland taxes on retirement income and pension. Can’t move...I’m home where I belong in the house I love. Sigh.
we are in a home we love too but no way are we staying in NY when I retire in 5 yrs. Plus my son and DIL are here in Ny as well.
Yeah this isn’t even politics really; it’s math. More money for businesses to spend, the more they’re likely to spend. Duh.
Since when is Michigan a low tax state? Did I miss something?
Where is South Carolina? Everybody tells me it is a low tax stat.
I thought Virginia and Pennsylvania were moderate tax states, not low tax states.
Are they just going by state income tax, or are they including sales tax, excise tax, and property taxes as well?
That will be NEVER!
If I had a hammer... :)
I should follow your lead and move from Maryland. I am on the Eastern Shore in a really lovely neighborhood (modest house, but it was first in the neighborhood which now hosts megahouses (my little 1000 sq house looks SOOO out of place!). I adore it, and I love being surrounded by Bay and beaches. So I guess for me it’s a question of...is it worth it for me to pay for it? Still not sure about that.
Sorry, didn’t mean to hijack thread! Back to business, all!
I saw a commercial on TV recommending businesses move to New York for low taxes
Let’s hope that liberals stay in blue states instead of bringing their politics to red states.
Liberal filth who advocate and vote for increasing goobermint power via taxation hurt worst??? Onoz!!!
Yeah, but they also contaminate the voter pools in the free states they invade.
Economics 101!
Retiring this year in CT—same situation.
But-the Republicans won enough House seats to push through a repeal of the state income tax on Social Security tax last year—never thought they could actually do it.
Good. The socialists are always crying that “the rich” don’t pay “their fair share”. Well now they’ll get to do so. I’m sure they must be thrilled by the opportunity to pay more of their income in tax. Right?
As I read it they only took the top 15 most populous states and divided them by high and low taxes.
Other states which have lesser population may still have lower taxes yet.
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