Federal Income Tax Reform Proposal - Effect on Californians (private school, vouchers)

[2sleepy]

Originally Posted by BBMW

I'm pretty sure in order to be considered charitable gifts, they'd have to be voluntary. How many people would voluntarily pay taxes, especially in the amounts the government of California (and it's localities) demand.
And S&L payroll tax deductions would also be subject to the cap.
Both of these are non-starters.
Look for a mass migration from blue states to red states.

Non starter? Designating part of your income tax as a charitable contribution already exists: "16 other states grant state tax credits for contributions to “scholarship organizations” that often fund private schools as a back-door vehicle for private school vouchers. Those have passed IRS muster."

Let the games begin: Tax plan opens new opportunities for taxpayers and state legislators to save key deductions - LA Times

Any out migration will not be to 'red states', if they occur they will be to blue or purple states with lower taxes.

[expatCA]

Originally Posted by 2sleepy

Non starter? Designating part of your income tax as a charitable contribution already exists: "16 other states grant state tax credits for contributions to “scholarship organizations” that often fund private schools as a back-door vehicle for private school vouchers. Those have passed IRS muster."

Let the games begin: Tax plan opens new opportunities for taxpayers and state legislators to save key deductions - LA Times

Any out migration will not be to 'red states', if they occur they will be to blue or purple states with lower taxes.

Actually most to to Purple or near purple states as they see the advantages of balance and no party has total control which always ends in problems either Blue or Red. Next are Red States. Some movement to Blue States but other than on the west coast not much. Now lower taxes and fees is definitely a draw. Why can't the largest State population wise, the 6th largest economy in the world, not do better with taxes? Where is the money going. Note; not to Red States as the difference between the Fed tax paid by CA residents comes back at 99% and is not a State possession in any event. Simply better management is needed.

[CA4Now]

Originally Posted by 2sleepy

There are strategies that blue states might be able to use to mitigate the damage caused by the new tax law...

It looks as if you and Kevin de Leon are on the same page.

California Senate Democrats are considering some ideas to counter the GOP tax plan - LA Times

[2sleepy]

Originally Posted by expatCA

Actually most to to Purple or near purple states as they see the advantages of balance and no party has total control which always ends in problems either Blue or Red. Next are Red States. Some movement to Blue States but other than on the west coast not much. Now lower taxes and fees is definitely a draw. Why can't the largest State population wise, the 6th largest economy in the world, not do better with taxes? Where is the money going. Note; not to Red States as the difference between the Fed tax paid by CA residents comes back at 99% and is not a State possession in any event. Simply better management is needed.

Why can't they do better with taxes? Do you mean like Oklahoma and Kansas where they've cut school to 4 days a week? I'll pass on that thank you.

[Independentthinking]

Originally Posted by CA4Now

It looks as if you and Kevin de Leon are on the same page.

California Senate Democrats are considering some ideas to counter the GOP tax plan - LA Times

Laughable. I hardly think a Middle Class family has the discretionary income lying around to have any impact at all on this one. But if you have a mathematical example eveyone can see (so no, you can't just copy and paste some generic link), by all means, let's see it so we can all disect the numbers together.

In fact, here. Let's use an example of my friend's tax situation and you tell me how to massage the numbers...

Married couple (no kids)

Income - $140k

Itemized deductions: $40k

State and Local Taxes $9300
Property Tax $8000
Mortgage Interest $20,000

Personal Exemptions: $4050 x 2

Old way : 140k-$40K- $8,100= $91,900k of taxable income.

Tax calculation 0-18650k @ 10% = 18650 x 10% = 1865
$75,900k-$18,650k =57,250 x .15 = 8588
$91,900 - $75,900 = 16,000 x .25 = $4,000

Total taxes: 1,865 + 8,588 + 4,000 = 14,453

Republican Way: 140k-27,300 (no personal exemptions and SALT limited to $10k)= $112,700 of taxable income

Tax calculation: $90k x 12% =10,800
$22,700 x 25% = 5,675

Total taxes: 10,800 + 5,675 = 16,475

Additional taxes owed: $2,022

OK, your turn. How do we manipulate these numbers to make Kevin's plan work?

[2sleepy]

Originally Posted by Independentthinking

Laughable. I hardly think a Middle Class family has the discretionary income lying around to have any impact at all on this one. But if you have a mathematical example eveyone can see (so no, you can't just copy and paste some generic link), by all means, let's see it so we can all disect the numbers together.

Why would it require discretionary income? The state would withhold the same amount of tax that they do now and you could indicate how much you want to "donate". And don't put me to task to prove it works, you are claiming it wouldn't work - so how about you go first and prove that it's not feasible.

Here's what they do in 17 states, the only difference is that they donate to private schools and I would expect that in California the donation would be to public schools, or maybe there would be other services you could designate
https://www.nytimes.com/2017/05/17/u...-a-profit.html

[Independentthinking]

Originally Posted by 2sleepy

Why would it require discretionary income? The state would withhold the same amount of tax that they do now and you could indicate how much you want to "donate". And don't put me to task to prove it works, you are claiming it wouldn't work - so how about you go first and prove that it's not feasible.

Here's what they do in 17 states, the only difference is that they donate to private schools and I would expect that in California the donation would be to public schools, or maybe there would be other services you could designate
https://www.nytimes.com/2017/05/17/u...-a-profit.html

I don't usually waste my time responding to you mostly due to your dodging when you're clearly wrong (which you have been on a number of occasions). You've got your example. Don't forget to include how the state will handle all it's different departments and pet projects with income being redirected. And please stop wasting my time and eveyone else's with your links. It's math
Prove your point.

[2sleepy]

Originally Posted by Independentthinking

I don't usually waste my time responding to you mostly due to your dodging when you'Re clearly wrong (which you have been on a number of occasions). You've got your example so put up or shut up. Don't forget to include how the state will handle all it's different departments and pet projects with income being redirected.

I'm surprised by that..the only times that I've noticed that you fail to respond to my posts is when you don't have a good rebuttal.

[Independentthinking]

Originally Posted by 2sleepy

I'm surprised by that..the only times that I've noticed that you fail to respond to my posts is when you don't have a good rebuttal.

Yawn. Still waiting.

[BBMW]

What happens when people decide not to contribute to the state as a charity?

Originally Posted by 2sleepy

Non starter? Designating part of your income tax as a charitable contribution already exists: "16 other states grant state tax credits for contributions to “scholarship organizations” that often fund private schools as a back-door vehicle for private school vouchers. Those have passed IRS muster."

Let the games begin: Tax plan opens new opportunities for taxpayers and state legislators to save key deductions - LA Times

Any out migration will not be to 'red states', if they occur they will be to blue or purple states with lower taxes.