Democratic States Oppose Trump Tax Reform Which Makes Wealthy Pay Fair(er) Share

[Revoltingest]

Like the title?
It's click bait, for sure.
But it's also accurate in their language.
They're taking the tax cuts, but they don't want to lose
deductability of their home property taxes over $10,000/year.
They say they're being singled out, but it applies to everyone.

Ref....
https://www.youtube.com/user/theyearinreview?feature=etp-gs-rew-rx1
New York, New Jersey, Connecticut and Maryland sued the federal government over the Republican-led tax overhaul Tuesday, alleging the new law championed by President Donald Trump unfairly singles out high-tax blue states.

The lawsuit, filed in the Southern District of New York, was dismissed as a long-shot political stunt by supporters of the new tax code, but New York Gov. Andrew Cuomo said it is a practical act of self-defense against an adversarial federal government. The challenge alleges that lawmakers crafted the new tax code to target left-leaning states and interferes with their constitutionally granted taxing authority.

"This is their political attempt to hurt Democratic states," said Cuomo, a Democrat who is considered a possible White House contender in 2020. "It's totally repugnant."

The tax law passed by Congressional Republicans and signed into law last year by Trump caps a deduction for state and local taxes at $10,000. The deduction was especially popular in high-tax, Democratic states, where many homeowners will see big increases in their federal tax bill. New York estimates that taxpayers will pay $14 billion more in 2018.

The suit seeks to block the cap on deductions for state and local taxes, known as SALT. It names the Internal Revenue Service and the U.S. Treasury Department as defendants. Cuomo first announced plans to sue seven months ago and was quickly joined by leaders from the other states.

 

[Milton Platt]

Like the title?
It's click bait, for sure.
But it's also accurate in their language.
They're taking the tax cuts, but they don't want to lose
deductability of their home property taxes over $10,000/year.
They say they're being singled out, but it applies to everyone.

Ref....
https://www.youtube.com/user/theyearinreview?feature=etp-gs-rew-rx1
New York, New Jersey, Connecticut and Maryland sued the federal government over the Republican-led tax overhaul Tuesday, alleging the new law championed by President Donald Trump unfairly singles out high-tax blue states.

The lawsuit, filed in the Southern District of New York, was dismissed as a long-shot political stunt by supporters of the new tax code, but New York Gov. Andrew Cuomo said it is a practical act of self-defense against an adversarial federal government. The challenge alleges that lawmakers crafted the new tax code to target left-leaning states and interferes with their constitutionally granted taxing authority.

"This is their political attempt to hurt Democratic states," said Cuomo, a Democrat who is considered a possible White House contender in 2020. "It's totally repugnant."

The tax law passed by Congressional Republicans and signed into law last year by Trump caps a deduction for state and local taxes at $10,000. The deduction was especially popular in high-tax, Democratic states, where many homeowners will see big increases in their federal tax bill. New York estimates that taxpayers will pay $14 billion more in 2018.

The suit seeks to block the cap on deductions for state and local taxes, known as SALT. It names the Internal Revenue Service and the U.S. Treasury Department as defendants. Cuomo first announced plans to sue seven months ago and was quickly joined by leaders from the other states.

<heavy sigh> At first, I didn't know who to believe. Then I realized the answer is "nobody".

 

[suncowiam]

Like the title?
It's click bait, for sure.
But it's also accurate in their language.
They're taking the tax cuts, but they don't want to lose
deductability of their home property taxes over $10,000/year.
They say they're being singled out, but it applies to everyone.

Ref....
https://www.youtube.com/user/theyearinreview?feature=etp-gs-rew-rx1
New York, New Jersey, Connecticut and Maryland sued the federal government over the Republican-led tax overhaul Tuesday, alleging the new law championed by President Donald Trump unfairly singles out high-tax blue states.

The lawsuit, filed in the Southern District of New York, was dismissed as a long-shot political stunt by supporters of the new tax code, but New York Gov. Andrew Cuomo said it is a practical act of self-defense against an adversarial federal government. The challenge alleges that lawmakers crafted the new tax code to target left-leaning states and interferes with their constitutionally granted taxing authority.

"This is their political attempt to hurt Democratic states," said Cuomo, a Democrat who is considered a possible White House contender in 2020. "It's totally repugnant."

The tax law passed by Congressional Republicans and signed into law last year by Trump caps a deduction for state and local taxes at $10,000. The deduction was especially popular in high-tax, Democratic states, where many homeowners will see big increases in their federal tax bill. New York estimates that taxpayers will pay $14 billion more in 2018.

The suit seeks to block the cap on deductions for state and local taxes, known as SALT. It names the Internal Revenue Service and the U.S. Treasury Department as defendants. Cuomo first announced plans to sue seven months ago and was quickly joined by leaders from the other states.

The economy in California is not the same economy in North Dakota. So to say that it affects everyone is a bit of a stretch.

Finance is more about percentages than it is about flat rates or numbers. When you have limits that do not reflect the local market values, then it can affect some worst than others.

You're better at finance than most here so I'm a bit surprised from your assertion.

 

[Revoltingest]

You're better at finance than most here so I'm a bit surprised from your assertion.

You shouldn't be.
I constructed the title to be not only clickbait, but also accurate.
The progressive income tax also discriminates in locales with high
incomes associated with the high cost of living, eg, Democratic
enclaves such as NYC, SF, DC. Disparate effect in the tax code
by party is nothing new, & nothing held unconstitutional because
effect is not linked to intent.

What's really going on is fear of market adjustment. States with
high property taxes fear that they'll have to lower them to be
competitive with other states, or they'll see flight, & loss of tax base.

Since the tax increase only applies for tax payments over $10,000/yr
it's effect will be on wealthier homeowners. The suits filed will benefit
them only. It's the Democrats who object to this tax increase which
offsets the tax rate reduction. Yet they are the ones who loudly objected
to the tax cuts. This seems contradictory. Or hypocr....uh....you know.

Reducing deductability of high property tax & home mortgage loan
interest payments is a good reform.
1) It applies to those most able to pay.
2) It discourages housing bubbles by incentivizing against speculative
price escalation.
3) It's fairer to renters, who typically cannot deduct the interest &
property tax portions of they rent payments.

 

[Revoltingest]

<heavy sigh> At first, I didn't know who to believe. Then I realized the answer is "nobody".

The deductability limitation is real.
The suits are real.
The consequences will be real.

 

[suncowiam]

You shouldn't be.
I constructed the title to be not only clickbait, but also accurate.
The progressive income tax also discriminates in states with high
incomes associated with the high cost of living, eg, Democratic
enclaves such as NYC, SF, DC. Disparate effect in the tax code
by party is nothing new, & nothing held unconstitutional.

Since the tax increase only applies for tax payments over $10,000/yr
it's effect will be on wealthier homeowners. The suits filed will benefit
them only. It's the Democrats who object to this tax increase which
offsets the tax rate reduction. Yet they are the ones who loudly objected
to the tax cuts. This seems contradictory.

Reducing deductability of high property tax & home mortgage loan
interest payments is a good reform.
1) It applies to those most able to pay.
2) It discourages housing bubbles by incentivizing against speculative
price escalation.
3) It's fairer to renters, who typically cannot deduct the interest &
property tax portions of they rent payments.

Well, as long as you agree that it's discriminating.

I'm not sure what Democrats you are suggesting. I'm fine with the tax cuts as many do not itemize their return so the increase to the standards do help. But like I said earlier and to which you agreed to, having those flat caps is clearly designed to discriminate against liberal areas with very high cost of living. Discrimination still occurs to various groups like the gay community and the Constitution doesnt protect from it so to suggest that a process is not unconstitutional is not exactly an overall litmus test.

Personally, I was fine with Trump's tax cuts except for those flat caps. I've already vested much of my time and capital into certain strategies and shouldn't have to be penalized for my offiliation or my home area.

 

[Revoltingest]

Well, as long as you agree that it's discriminating.

I'm not sure what Democrats you are suggesting. I'm fine with the tax cuts as many do not itemize their return so the increase to the standards do help. But like I said earlier and to which you agreed to, having those flat caps is clearly designed to discriminate against liberal areas with very high cost of living. Discrimination still occurs to various groups like the gay community and the Constitution doesnt protect from it so to suggest that a process is not unconstitutional is not exactly an overall litmus test.

Personally, I was fine with Trump's tax cuts except for those flat caps. I've already vested much of my time and capital into certain strategies and shouldn't have to be penalized for my offiliation or my home area.

You know....the deductability limitations affect Republicans too.
The difference is that they're not filing suits to keep both the
income tax reductions & the full property tax deductability.

 

[suncowiam]

You know....the deductability limitations affect Republicans too.
The difference is that they're not filing suits to keep both the
income tax reductions & the full property tax deductability.

I understand your point of the legal action...

What about Democrats that did not back this legal action?

Or what about Republicans that do not agree with the flat caps and could possibly agree with the law suit?

You're highlighting "Democrats" but let's be fair, this is still a specific demographic. Probably it's more politics than actually based on logic or fairness which both sides tend to do to support their partisan base.

 

[Revoltingest]

What about Democrats that did not back this legal action?

Good for them.

Or what about Republicans that do not agree with the flat caps and could possibly agree with the law suit?

They make me wanna puke.
Well, not that....but I disagree with them.

You're highlighting "Democrats" but let's be fair, this is still a specific demographic. Probably it's more politics than actually based on logic or fairness which both sides tend to do to support their partisan base.

According to the article, the suits are based upon the states being Democratic.

"This is their political attempt to hurt Democratic states," said Cuomo, a Democrat who is considered a possible White House contender in 2020. "It's totally repugnant."

 

[suncowiam]

Good for them.

They make me wanna puke.
Well, not that....but I disagree with them.

According to the article, the suits are based upon the states being Democratic.

"This is their political attempt to hurt Democratic states," said Cuomo, a Democrat who is considered a possible White House contender in 2020. "It's totally repugnant."

Possibly that was the intent with the flat caps? Why not instead make it a percentage possibly against the HUD fair market value?

Maybe regardless of who filed the lawsuiy, there is actually merit to it.

 

[Revoltingest]

Possibly that was the intent with the flat caps? Why not instead make it a percentage to possibly to the HUD fair market value?

I wasn't involved in designing the tax code
changes, so I don't know their reasoning.
But I hope they thought as I did.
I'd prefer to eliminate all personal deductions
in exchange for even lower tax rates.

Maybe regardless of who filed the lawsuiy, there is actually merit to it.

It looks baseless.

 

[suncowiam]

I wasn't involved in designing the tax code
changes, so I don't know their reasoning.
But I hope they thought as I did.
I'd prefer to eliminate all personal deductions
in exchange for even lower tax rates.

It looks baseless.

Your opinion is noted. The result of the law suit will clarify how legal the tax laws have been. That's only a good thing, right?

 

[Revoltingest]

Your opinion is noted. The result of the law suit will clarify how legal the tax laws have been. That's only a good thing, right?

Court is a crap shoot.

 

[suncowiam]

Court is a crap shoot.

With that logic, why even have a legal system in the first place?

 

[Revoltingest]

With that logic, why even have a legal system in the first place?

Because to not have one would be even worse.

 

[Jumi]

<heavy sigh> At first, I didn't know who to believe. Then I realized the answer is "nobody".

To wade through piles of . that politicians produce is to realize they're almost all confused.

 

[bobhikes]

Like the title?
It's click bait, for sure.
But it's also accurate in their language.
They're taking the tax cuts, but they don't want to lose
deductability of their home property taxes over $10,000/year.
They say they're being singled out, but it applies to everyone.

Ref....
https://www.youtube.com/user/theyearinreview?feature=etp-gs-rew-rx1
New York, New Jersey, Connecticut and Maryland sued the federal government over the Republican-led tax overhaul Tuesday, alleging the new law championed by President Donald Trump unfairly singles out high-tax blue states.

The lawsuit, filed in the Southern District of New York, was dismissed as a long-shot political stunt by supporters of the new tax code, but New York Gov. Andrew Cuomo said it is a practical act of self-defense against an adversarial federal government. The challenge alleges that lawmakers crafted the new tax code to target left-leaning states and interferes with their constitutionally granted taxing authority.

"This is their political attempt to hurt Democratic states," said Cuomo, a Democrat who is considered a possible White House contender in 2020. "It's totally repugnant."

The tax law passed by Congressional Republicans and signed into law last year by Trump caps a deduction for state and local taxes at $10,000. The deduction was especially popular in high-tax, Democratic states, where many homeowners will see big increases in their federal tax bill. New York estimates that taxpayers will pay $14 billion more in 2018.

The suit seeks to block the cap on deductions for state and local taxes, known as SALT. It names the Internal Revenue Service and the U.S. Treasury Department as defendants. Cuomo first announced plans to sue seven months ago and was quickly joined by leaders from the other states.

The state of New Jersey has the lowest return of Taxes paid to the federal government to Federal assistance from the government out of all states. Currently I pay 8900 per year in Taxes for my 1300 sq/ft cape home on less than half an acre. I have 2 Kids, 1 going to college next year both me and my wife work and we have never grossed more than 100,000 per year. While not effected I have friends with slightly bigger house in different counties in the same income bracket give or take 10,000, are any of us Rich?

 

[metis]

Any tax structure that hurts those in need is simply unethical by almost any basic moral standards, as are the cuts to Medicaid, the ACA, and CHIP. Nor is Trump's tax cuts "conservative" since it significantly ramps-up the deficit.

It is a win-fall for the wealthy-- "pure" & simple.

 

[Revoltingest]

The state of New Jersey has the lowest return of Taxes paid to the federal government to Federal assistance from the government out of all states. Currently I pay 8900 per year in Taxes for my 1300 sq/ft cape home on less than half an acre. I have 2 Kids, 1 going to college next year both me and my wife work and we have never grossed more than 100,000 per year. While not effected I have friends with slightly bigger house in different counties in the same income bracket give or take 10,000, are any of us Rich?

You still get to deduct the full amount of your property taxes.
And now you'll get to pay a lower income tax rate.

 

[Revoltingest]

Any tax structure that hurts those in need is simply unethical by almost any basic moral standards, as are the cuts to Medicaid, the ACA, and CHIP. Nor is Trump's tax cuts "conservative" since it significantly ramps-up the deficit.

It is a win-fall for the wealthy-- "pure" & simple.

But the wealthy will now pay taxes on income which was previously excluded.
You aren't one of them, are you?