How some states are rebelling against the new GOP tax code

[Yo_Mama_Been_Loggin]

Officials in New York, New Jersey, California, and Maryland are going to the mat against the White House, reworking their tax codes to ease residents' pain from new limits to federal deductions for state, local and property taxes.

Starting this year, the Tax Cuts and Jobs Act, the recently enacted federal tax overhaul, caps payers' deductions on their property, state and local income taxes (SALT)  at $10,000.

In 2015, the average New Yorker's SALT deduction was more than $22,000. In New Jersey and California, those deductions were around $18,000, while Marylanders claimed an average deduction of nearly $13,000.

Previously, there was no limit on deductions for these local levies. The change means many residents in these states and many others will now pay more to the federal government.

"We're attempting to come up with ways to negate and blunt the harsh and unfair Republican tax policy," said Kevin de León, the Democratic leader of the California State Senate.

To combat the new SALT deduction cap, politicians are proposing some creative concepts.

Some of the ideas include granting a charitable deduction — which remains uncapped — after filers pay property taxes. Another idea does away with income taxes and applies a statewide payroll tax to be paid for by employers — which is deductible to them.

"The whole intent is to ensure that you get the benefit of the deduction you would otherwise lose," said Joseph Bankman, the Ralph M. Parsons Professor of Law and Business at Stanford Law School.

https://www.msn.com/en-us/money/markets/how-some-states-are-rebelling-against-the-new-gop-tax-code/ar-AAv4WUx?li=BBnbfcL&ocid=edgsp

[BigmanPigman]

1. YEAH blue states! RESIST!

The AGs and lawmakers in the highly taxed blue states have been fighting the GOP and the Fucking Moron for a year. I love the blue states and support them for doing anything they can to get around the unfair GOP BS.

[Hoyt]

2. That's an interesting outcome.

[roamer65]

3. CA has the Democratic majorities to pass the following.

Create a new tax bracket at the state income tax level that claws back the federal tax cuts for people making more than $500k a year.

Use the money to hand out tax credits for those below that income and more SALT deduction than the 10k limit.

[unblock]

4. This is why all forms of income should generally be taxed the same way

Otherwise people waste a lot of time and money and effort recharacterizing income and spending so it fits the preferred categories in a defective tax code.

This tax bill is horrendous in this regard. People ole will be setting up pass-through companies to take advantage of new loopholes, etc.