Federal Income Tax Reform Proposal - Effect on Californians (earthquake, deductible)

[expatCA]

Originally Posted by wac_432

The rich will get MUCH richer, mostly at the expense of the Federal Debt. The poor and middle class will basically tread water, so by comparison they will seem poorer.
Even in the expensive parts of CA, the loss of 10K+ tax deductions and 750K mortgage deductions will only hurt the far-upper-middles, who can comfortably absorb the damage. They will be annoyed, and campaign/vote/think against Repubs, but not do much.
CA has the 2nd-most number of ultra-rich people in the USA, (LA and San Fran top the list of the most millionairs/billionairs for US cities trailing only New York). Very few ultra-rich people live in red states (I guess the ultra-rich like diversity, clean air/water/food, etc.) So, in terms of money accumulation, it will dramatically accelerate the total net wealth accumulation of Californians compared to poor states like... well pretty much everybody else except for some deep-blue Northeastern states. It will just be concentrated in the hands of a few.
If there's any truth to trickle-down (and there's not much) that means that everybody else in CA will benefit somewhat from that money influx.
So, big local picture: It's good news for CA, despite the headlines. We're robbing the federal coffers to make our rich corporate paymasters richer, and they live here, so that will help out our local economies somewhat. CA tax codes will shift to redistribute some of that wealth to keep social stability in our state. Good luck to the poor bastards in places like Texas or Kansas.
National big picture, it's still adding to the snowballing disaster of increasing economic inequality and federal debt. But, hey, if the USA eventually goes down, CA can form it's own country if need be.
I always get a giggle out of those who think that something as paltry as the federal (or state) tax code has any impact on where or how the wealthy live or do business. Yes, it affects those who operate on the razors-edge, but they aren't rich--they're just scraping by. The rich live where they want. The corporations cater to them because they are run by them. The rich and smart want to live in California, so the corporations put their HQ and development/design stuff here and move/keep manufacturing overseas or somewhere with cheap labor. The poison factorys choke and inject cancer into the poor who live and work around them, while we still get to enjoy the last relatively clean air, water, and land.
I thank my lucky stars every day that I made it out of the poison fields in flyover country, and to the golden state of opportunity, while it was still possible for an everyday schmo to do so.

UH, the air in most of CA is bad and stays that way day after day. You just can't see it and even the beach areas in SoCal have bad air.

Mind you the air in moist places is not very good now and most of that is due to man's activities including....... crowding into cities and areas like LA and OC.

[DKM]

Originally Posted by wac_432

The corporations cater to them because they are run by them. The rich and smart want to live in California, so the corporations put their HQ and development/design stuff here and move/keep manufacturing overseas or somewhere with cheap labor.
I thank my lucky stars every day that I made it out of the poison fields in flyover country, and to the golden state of opportunity, while it was still possible for an everyday schmo to do so.

I can confirm a listed corporation recently moved its HQ to near where I live to be close to where the smart people running it want to live. That was their press release anyway...

[JGC97]

Originally Posted by DKM

I can confirm a listed corporation recently moved its HQ to near where I live to be close to where the smart people running it want to live. That was their press release anyway...

What? Their press release actually stated that? No mention that it was an overall better decision because it was cost effective or any of the other reasons a business might want to set roots in California? It was only due to where the "smart people running it want to live?"

That's odd

[2sleepy]

Originally Posted by HereOnMars

What? Their press release actually stated that? No mention that it was an overall better decision because it was cost effective or any of the other reasons a business might want to set roots in California? It was only due to where the "smart people running it want to live?"

That's odd

I have a friend who scouted out new locations for businesses. He said that if the company requires an educated workforce and has key members who they want to retain, the search becomes focused on those issues rather than low taxes.

[payutenyodagimas]

Originally Posted by wac_432

If there's any truth to trickle-down (and there's not much) that means that everybody else in CA will benefit somewhat from that money influx.
So, big local picture: It's good news for CA, despite the headlines. We're robbing the federal coffers to make our rich corporate paymasters richer, and they live here, so that will help out our local economies somewhat. CA tax codes will shift to redistribute some of that wealth to keep social stability in our state. Good luck to the poor bastards in places like Texas or Kansas.
National big picture, it's still adding to the snowballing disaster of increasing economic inequality and federal debt. But, hey, if the USA eventually goes down, CA can form it's own country if need be.
I always get a giggle out of those who think that something as paltry as the federal (or state) tax code has any impact on where or how the wealthy live or do business. Yes, it affects those who operate on the razors-edge, but they aren't rich--they're just scraping by. The rich live where they want. The corporations cater to them because they are run by them. The rich and smart want to live in California, so the corporations put their HQ and development/design stuff here and move/keep manufacturing overseas or somewhere with cheap labor. The poison factorys choke and inject cancer into the poor who live and work around them, while we still get to enjoy the last relatively clean air, water, and land.
I thank my lucky stars every day that I made it out of the poison fields in flyover country, and to the golden state of opportunity, while it was still possible for an everyday schmo to do so.

i was even thinking why Congress didnt just eliminate all federal taxes?


CA can make it up whatever federal dough it receives

[CA4Now]

Casualty loss deduction? No more.

Thanks to Trump's tax plan, victims of disasters large and small are about to get scrooged - LA Times

[DKM]

Originally Posted by HereOnMars

What? Their press release actually stated that? No mention that it was an overall better decision because it was cost effective or any of the other reasons a business might want to set roots in California? It was only due to where the "smart people running it want to live?"

That's odd

I paraphrased it, is that okay? it was more along the lines of wanting to be near the place where their ideal employees would like to live. Since our area is nearly perfect to live in once you can afford it, its not hard to see this rationale.

[expatCA]

Originally Posted by CA4Now

Casualty loss deduction? No more.

Thanks to Trump's tax plan, victims of disasters large and small are about to get scrooged - LA Times

More twisted news.

"Among other things, Republicans are set on eliminating the tax deduction for uninsured casualty losses unless a national disaster is declared."

Rare for a fire lie CA hs had this year not to be called a National Disaster. Then people who do not carry enough insurance should pay.

"People with personal property damaged by disaster currently can deduct the uninsured loss when itemizing on their federal tax returns. Only the dollar amount that exceeds 10% of adjusted gross income can be deducted. But that is quickly reached when a home is destroyed.

"one of several California Republicans targeted by Democrats for ouster in November’s elections — has introduced legislation she says will guarantee that this year’s wildfire victims can deduct their losses."

Humm, no Dem trying to get such a law passed?

Will be interesting to see how this works out for most people.

[JGC97]

Originally Posted by DKM

I paraphrased it, is that okay? it was more along the lines of wanting to be near the place where their ideal employees would like to live. Since our area is nearly perfect to live in once you can afford it, its not hard to see this rationale.

Makes sense now. I just interpreted it incorrectly. Long day. <sigh>

[CA4Now]

Originally Posted by expatCA

More twisted news.

Your interpretation, perhaps?

Originally Posted by expatCA

Rare for a fire lie CA hs had this year not to be called a National Disaster.

Huh?

You quoted from the article: "People with personal property damaged by disaster currently can deduct the uninsured loss when itemizing on their federal tax returns. Only the dollar amount that exceeds 10% of adjusted gross income[/b] can be deducted. But that is quickly reached when a home is destroyed."

Keep reading, expat.

"But victims of future calamities will be cut loose to fend for themselves absent a national disaster declaration.

Not all casualties occur in natural disasters, of course. Kitchen fires can set a house ablaze. Cars can be stolen. Houses burglarized. Insurance might not cover it all. Tough.

A grease pan lights up, igniting the house. That’s a disaster for one family, but it doesn’t merit a presidential declaration. No deduction."

Originally Posted by expatCA

Will be interesting to see how this works out for most people.

Yes, it will.