by Countable | 12.20.17
The recently-passed tax bill puts a $10,000 cap on state and local tax (SALT) deductions—which is bad news for high-tax states like California, New York, and New Jersey.
But Bloomberg explained that there are a couple of "tricks states may use to get around the SALT deduction."
Charitable Gifts: Residents could "make charitable gifts to the state instead of paying income tax."
Replace income tax (paid by individuals) with payroll taxes (levied on employers): "Channeling collections into payroll taxes would also allow both itemizers and non-itemizers to benefit, and states would keep more money within their borders."
Will your SALT deductions be affected by the new tax bill? Would you support states creating workarounds for SALT? Hit Take Action and tell your reps, then share your thoughts below.
(Photo Credit: Aslan Alphan / iStockphoto)
Written by Countable
And, so it starts. If we had a functioning Congress and administration, one not interested in penalizing liberal, forward-thinking states for their lack of support (ie, votes), tricks like this would be unnecessary, especially three hours after a new, punishing tax bill is approved. Listening to members of Congress justify the elimination of most of the SALT deduction by characterizing high tax states as "mismanaged, freeloading bastions of liberalism" is incorrect. New York and New Jersey already give more to the federal government in taxes than they receive back in benefits. Congress had a chance to correctly and fairly reform our tax code in a sane and bi-partisan manner. Unfortunately for the majority of us, they chose not to. We will be paying for their arrogance for years.
That we’re even talking about how States, and their residents, can protect themselves from the Federal Government shows the depth of the insane disconnect between Washington Plutocrats and every other tax payer in this Country.
Blue states once again subsidizing Red states. http://www.businessinsider.com/the-states-the-most-and-least-dependent-on-the-federal-government-2015-7. Ignorance is bliss.
States could legalize cannabis, impose a reasonable sales tax and enjoy a windfall that could pay for healthcare for kids or public education. Or provide relief from federal income taxes for those who actually need it.
These are great ideas for getting around the stupidity of this tax bill: Charitable Gifts: Residents could "make charitable gifts to the state instead of paying income tax." Replace income tax (paid by individuals) with payroll taxes (levied on employers): "Channeling collections into payroll taxes would also allow both itemizers and non-itemizers to benefit, and states would keep more money within their borders.": Course these states would have to be smart states. That leaves out the red states for the most part.
Here’s a way to get around the removal of the SALT deduction: LOWER YOUR FUCKIN STATE INCOME TAXES
Appears the liberal forward-thinking high-tax states are chock full of the wealthiest 1% among us. Truly an irony that they’ll be looking to liberal Democrats to restore their preferential state tax deduction. Maybe they’ll note the irony that the President and Republicans do not always favor the rich.
This let's those of us in low tax states to quit subsidizing those in the high tax states. Hurrah for Trump and a Republican Congress that got this done.
Yes, New York State should move towards higher payroll taxes. Would also allow for us to blaze the trail towards Medicare for every man, woman and child in our grand state!
The Blue states JUST DO NOT GET IT! Most Liberals are blinded to it! And the Democratic party can't read HISTORY! HIGH TAXES are NOT the answer! Less welfare, fewer social programs, jobs for everyone, and a moderate tax to support a lean, mean Military is THE ANSWER. Sorry, but, NO WORK, NO EAT, and don't give me the drivel about the starving masses. How many of the millions of migrants, OBAMA let into this country? What percentage of them have jobs? The government is afraid to post that data! Why? Germany posted the percentage of working migrants and it is less than 4%. The other 96% are freeloaders which refuse to work, even though they offered them jobs and training. Yes, I'm for lower taxes, but anyone that isn't, is free to donate up to 100% of their money to the government. There is no limit on that, if you really feel that strong about it! What I'd really like to see, is for the Democrats in Congress to shut up for 6 months, stop blocking everything, and see if the Repubs can actually accomplish something! What a novel idea! Are you too chicken to see if they could do something, or are you afraid they would succeed?
This sounds like a great option to work around SALT without having to cut programs for the vulnerable in our society. Replace income tax (paid by individuals) with payroll taxes (levied on employers): "Channeling collections into payroll taxes would also allow both itemizers and non-itemizers to benefit, and states would keep more money within their borders."
These workarounds are interesting. I doubt the charitable gift would work. Too many people would not pay it. And I doubt the legality would hold up. The payroll tax seems like a manageable and fair way around the new federal income tax laws.
I am an Ohio resident, and my income tax is 2%. I will not be affected by the new SALT deductions rule, but I believe that states should implement their own SALT work-arounds.
Yes, yes, yes. BTW It is an outrage that married couples only get the $10,000 SALT cap while singles get $10,000 each. I thought the GOP were all about family values. Not when it comes to tax fairness.
In the States of California, we refused to give to the Wealthy few.
trump just gave us more swamp! Wow!
Why should the rest of us in the country subsidize the high tax states? Perhaps the constituents in the high tax states should look at how their local legislators are spending their monies. I have read several articles, for example, how suspended teachers in NYC are still n the payroll while hey are on suspension and how several of these states are handling retirement packages of a state retirees. These are not the Nations taxpayers responsibility so fix hem n your state.
Wow what a great tax bill. Now states and individuals have to figure out loopholes for their taxes. Way to go
Is it time for more SALT talks??
Do you have a Hail Mary pass. Because after this tax proposal we need one they seem to have gotten one got to pass the bill twice another words a pass the buck. They think they’re pretty smart but there must’ve been something they forgot do you have any ideas cause I really don’t know where to go with us right now maybe in a few days I’ll figure out something but right now totally confused again. I’m hoping for the mueller investigation to come and pick those guys out put him in jail just like they did during Watergate I can’t believe that some of that announcing that MSNBC the investigative reporting I can’t believe it that’s not right I mean it was that just a story or all that was made up term is Mr. Miueller going to figure out what really did what parts of that really did happen.?