Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Officials in high-tax states are arguing that the law's $10,000 cap on the state and local tax (SALT) deduction is unconstitutional. The cap is particularly harmful to residents of blue states that tend to have higher taxes.
“By eliminating the SALT deductions, Trump’s tax bill will jack up taxes for more than half a million Marylanders,” Frosh, a Democrat, said in a news release. “It is an attack on state sovereignty and an attempt to cripple our ability to educate our kids, protect the Chesapeake Bay, and build the infrastructure that Maryland needs to be competitive in the world economy."
The people who call for the rich to pay higher taxes are a bunch of phonies.
I think they are just mad because they will actually have to pay these tax increases instead of having a secret loophole to escape and keep their riches.
The people who screeched about Obama`s deficit for 8 years are a bunch of phonies. See how that works?
The high tax states are understandably peeved by this because it makes their onerous taxation more transparent. The old system used federal redistribution to a) mask just how absurd their taxes were and b) not lose residents/businesses to lower tax states. It also helped cover up the real effects of property/environment regs meant to keep property values sky high, with many of the $1M+ mortgage holders getting mad tax breaks to be able to actually afford propping up an artificially overvalued housing market.
Basically, the SALT cap blows away a ton of smoke, breaks a bunch of mirrors, and knocks down a bunch of card houses. All of these things will result in increasing angst toward profligate state/local government. Any angst towards any level of government is good, and more angst is better.
Thing about federalism though....the states are, or should be, sovereign. If one state is high tax and unfriendly to its citizens, and a neighboring state is much nicer...welcome to competition within a market. Not fed.gov's job to protect the states from the consequences of their regulations and policies. Everyone in America can deduct up to $10k. Equal as equal gets. If that doesn't go as far for folks holding a subprime ARM on their $2 million condo in Manhattan as it does for the $125k mortgage holder in Podunk, TX...well, life is all about choices and opportunity costs.
That's the best thing about the SALT cap - it makes state government much more transparent, and let's everyone get a lot more in tune with the consequences of their choices.
Exactly. Uncovering a thing does not equal creating it.
teh basis of the lawsuit is that the cap on SALT is unconstitutional, but since the constitution requires that taxes be levied equally, and the presumption would be that any deduction also be levied equally, there is no constitutional issue here.
They may have had a case, maybe, prior to 1913, but ever since then, the Constitution has this gem:
Quote:
Originally Posted by 16th Amendment to the US Constitution
The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.
(emphasis mine)
Without regard to any census or enumeration...
Without regard...
The states ratified that amendment, and no amendment has superseded it. Therefore, they can take the $10k SALT cap and suck on it. If that makes their oppressive state taxes look bad...oh freaking well. Doesn't make it unconstitutional.
It was not a secret loophole. It was there for everyone to see. I took it. Yup. Felt no guilt. It’s going to hurt having it capped. I am not a liberal. Still not happy about it.
I wish we could let Republicans in high tax states take the deduction. I supported the change but I hate the fact that people like you weren't grandfathered.
On the OP's point, yep, as usual Libs are liars and hypocrites.
I find it amusing that the "tax the rich" liberals who are mad about paying higher taxes are blaming trump. He isn't the one who sets the state tax rates. I live in a no tax state so the only thing the tax cut did for me is lower my taxes.
What it does, in effect, in the high tax states is force the people who voted for higher taxes to actually pay for higher taxes - as opposed to having the country as a whole subsidize them.
It is amazing that they don't see the irony in their protests against the wealthy paying higher taxes.
That's the thing that immediately struck me from the start. If you're property taxes and state income taxes are 10 grand or over.....you've got a higher income than most in this country, at least in the vast majority of cases. So if liberals want the rich to pay more in taxes....isn't this a very easy way to ensure that ?
I'm a bit confused by their logic. Isn't this a progressive tax, which liberals tend to be in favor of ?
They may have had a case, maybe, prior to 1913, but ever since then, the Constitution has this gem:
(emphasis mine)
Without regard to any census or enumeration...
Without regard...
The states ratified that amendment, and no amendment has superseded it. Therefore, they can take the $10k SALT cap and suck on it. If that makes their oppressive state taxes look bad...oh freaking well. Doesn't make it unconstitutional.
my point was that the cap is set across the board, and not just on high tax states.
What it does, in effect, in the high tax states is force the people who voted for higher taxes to actually pay for higher taxes - as opposed to having the country as a whole subsidize them.
my point was that the cap is set across the board, and not just on high tax states.
I understood that, I was saying that they wouldn't have much of a case prior to 1913, and in agreement with you, they have zero case now.
It is exactly equal, totally within every constitutional enumerated power of Congress, and duly created, passed and signed into law. Yes, high tax states must now figure out their next move, but that is not fed.gov's problem.
The right wants to lower taxes to pat themselves on the back like they are helping the people, while is makes it easier to get out of paying them, like Trump.
With taxes being so high, lowering them a little still keeps the power at be filthy rich.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
