Federal Income Tax Reform Proposal - Effect on Californians (Oakland: rent, buying)

[Independentthinking]

Originally Posted by BBMW

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

Don't hold your breath waiting for any logic here. This is what happens when all you've got are generic cut/paste jobs and op/eds. Many posters here seem to rely on the propaganda from the media to do their talking for them because they don't have a cogent argument they can make on their own

[2sleepy]

Originally Posted by BBMW

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

then state income tax would be collected as it is now, the difference is that if part of it is designated as a charitable contribution that portion would be deductible on your taxes.

[Independentthinking]

Yeah, she honestly thinks with how poorly this state manages money, that this would work with people designating their state taxes to specific items. ROTFLMAO! There's simply no logic here. And stupid gimmicks like these are not going to work. The Middle Class in CA should just bend over and grab their ankles.

[payutenyodagimas]

Originally Posted by BBMW

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

they should lessen unnecessary spending

[Independentthinking]

Originally Posted by payutenyodagimas

they should lessen unnecessary spending

That would be called an oxymoron when you're referring to the government of CA doing that. It's not in their DNA.

[BBMW]

And you don't think the IRS wouldn't see through this, and disallow it? They would in a heartbeat.

Originally Posted by 2sleepy

then state income tax would be collected as it is now, the difference is that if part of it is designated as a charitable contribution that portion would be deductible on your taxes.

[BBMW]

Of course, this is the answer. But that's no fun.

Originally Posted by payutenyodagimas

they should lessen unnecessary spending

[Independentthinking]

Originally Posted by BBMW

And you don't think the IRS wouldn't see through this, and disallow it? They would in a heartbeat.

Exactly.

This is complete desperation on the part of the politician and the fact that nonsense like this get bandied around the internet is ridiculous. Hard to imagine anyone thinking this would work .

[2sleepy]

Originally Posted by BBMW

And you don't think the IRS wouldn't see through this, and disallow it? They would in a heartbeat.

They might but 17 states already have programs called "tax credit scholarships" where donations to private schools are offset by a credit on the donor's state income tax and the IRS has upheld it as being legal. The difference would be the money in California would go to public schools, so could the IRS say "you can do this for private schools but not public?" I'm not sure they would

[jbgusa]

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.

Let's see what the IRS position on that dodge is.