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I don’t think he was saying that. He was saying they are counted as growth, but they are bad growth. It accounts for a net loss in revenue for the state.
One guy in my NJ town moved to Florida. He was paying so much income tax, that the newspaper said that he alone was a devastating loss to state revenue. He was paying around $150M a year in state income tax. So just by moving out of state for 6 months plus 1 day per year, he got a raise of $150M per year.
That is just one extreme example, but the same rings true for many wealthy people in NJ. Forget the $30k-$90k in property taxes, the nearly 10% income tax, and low threshold inheritance tax are enough to drive the wealthy out of the state.
The Palm Beach County Business Development Board is actively targeting high worth individuals in NY, NJ< CT to bring their businesses (or at least open back offices) in Palm Beach County. They have always used the argument of lower taxes, but have reported an upswing in interest and relocation inquiries.
That upswing was increased further after the SALT deduction phase out was announced.
If you live in a 300 sq ft studio in NYC, the property tax alone hits the $10K max. If such person is "rich" in your book, then that is you opinion and nothing more.
Their choice to overpay for housing. The rest of us shouldn't have to subsidize that.
I don't even own a multi-million dollar home in IL, but this is how the $10,000 SALT deduction cap impacts me:
The SALT deduction is capped at $10,000, even for a married couple. Just our real estate tax on our IL home (over $19,000/year) and IL income tax (over $34,000/year) is over $53,000. $43,000 of that has to be paid with after tax $, and since we're in the 37% tax bracket that'll cost us an extra $15,910/year, given that we itemize and already eclipse the $24,000 standard deduction for a household of two.
So that's not a tax cut, that's a tax increase.
At least now, red-staters won't be subsiding blue-staters' SALT taxes anymore, which really wasn't fair.
There's no penalty. With the lower tax brackets and changes to AMT your bottom-line will be roughly the same.
Isn't it nice reading that both the NY and NJ governors now are against a 'millionaire' tax because of the new tax law? Sure, it's easy to tax them but there's a point where they will leave the state taking all their tax revenue with them.
Why not stop spending so much?
The rich have been fleeing high tax states for some time now.
CT is getting into bad shape..they lost $6 billion in revenue with money fleeing and only got $3 billion back with people moving in.
And this migration trend of leaving high tax states for low tax states has been going on for quite a few years.
When do Democrats believe something is not a loophole? When they want to use it to avoid taxes, or better yet create a law to create a loophole. That the high tax states do not want to engage in real tax reform themselves, they engage in loophole creation and usage. City and state governments as charities? Strains credulity, don't you think?
In California, only 1/3 of taxpayers itemize, so who are they fooling? That rich Democrats speak differently when it is Democrats have pay their fair share is clear.
Well that studio may have cost you $750K to buy so yeah..they are rich.
It's more like $500K, and practically always purchased with borrowed money.
Since when did a large mortgage make you "rich".
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