The Tax Man Cometh.
Agree or disagree with the Tax Cut Bill that is now Law, in which State Deductions are capped at $10.000. This means that all those high tax states in NE, upper mid-west and West Coast with unfundable pension liabilities, RE taxes through the roof and out of control spending will have a reckoning with their citizens.
Y'a see, they were able to do all that in-State tax and spend, and give tax-payers a break because they could write the difference off on their federal taxes. No more.
Come April, there will be a revolt.
Will it be against their State Gubmints? Will it be against the Fed Legislature? Or just Trump?
Regardless, This will not be pretty.
There is a reason there is an exodus from these States to those that are not so burdened.
I live in a State with no income tax. How about you?
The Pharisees cometh. Render unto Baker, Brown, Cuomo, Malloy, Murphy, Rauner, et al what is theirs...
Heh!
Comments
I live in a state that
does have individual income tax. When the tax cut went through, I increased my deductions because I figured I’d get royally bent over in April. I’ll probably still get bent over but maybe not as far.
"The “jumpers” reminded us that one day we will all face only one choice and that is how we will die, not how we will live." Chris Hedges on 9/11
If you are a normal wage earner,
you will likely be paying less in taxes because the standard deduction was doubled.
And you've referenced a Mr. Andy, so the standard deduction for married/filing jointly was increased to $24,000.00 (from about $12,000, I think). These amounts should cover what was previously taken as personal deductions.
For example, my itemized deductions were barely over the standard deduction in 2017. But now, the standard deduction is about $2,000 higher, so my taxes are lower in 2018 compared to 2017.
Unless you had some super high income or deductions, weird transactions, or maybe business income, you should come out fine. Even the personal deductions that were discontinued for Schedule A (itemized deductions) are allowable on Schedule C (business income/expenses).
dfarrah
Happy New Year, all ! :) :)
We were advised to make quarterly payments on the pitiful ss/pension income that the withholding was too low on, otherwise face stiff penalties that were not there last year, so we have been making the quarterly payments. Have relatives that have not.
Found this:
Yup, "there will be hell to pay" methinks.
Is it time to don the yellow vests yet? /s
Thanks EdMass. No income tax state that we file from.
A truth of the nuclear age/climate change: we can no longer have endless war and survive on this planet. Oh sh*t.
I don't know that
paying taxes quarterly on what a taxpayer (TP) would be paying overall anyway is an issue.
There could be stiffer
paymentsfines for underpayment of taxes on a quarterly basis, but TPs (business or individual) have always been expected to remit taxes on some sort of regular basis and/or when income exceeds a certain amount.So, I don't see how this is 'hell to pay,' if TPs aren't paying per the schedule according to the regulations.
dfarrah
asdf yes they have butfew regular taxpayers have faced this.
A truth of the nuclear age/climate change: we can no longer have endless war and survive on this planet. Oh sh*t.
Exodus
The vast majority of the exodus from northern states has been due to Baby Boomers retiring and seeking warmer climes. Perhaps the tax law will cause a slight increase in future years, but history shows that even when tax rates were higher than today (pre-Reagan), people lived where the jobs were and retired elsewhere if they could.
Statistics
Tax Reform and Interstate Migration
Low-Tax States Almost Double The Job Growth Of High-Tax States After Trump's Tax Cut
Wealthy Taxpayers Are Fleeing These States in Droves
Never missing a chance to tax someone -- The Exit Tax
The Growing Specter of State “Exit Taxes” as Residents Abandon High-Tax States
Your "vast majority" explanation no longer works, imho.
Best
Prof: Nancy! I’m going to Greece!
Nancy: And swim the English Channel?
Prof: No. No. To ancient Greece where burning Sapho stood beside the wine dark sea. Wa de do da! Nancy, I’ve invented a time machine!
Firesign Theater
Stop the War!
I guess the wealthy taxpayers
could downsize their homes to avoid property taxes rather than moving.
If they move to Texas, Texas has very high property tax rates (compared to Colorado, which has an income tax). So, I hope the movers looked at the whole picture and not just one number to justify their move.
I think 'no income tax' states manage to take taxes out of somewhere to make up the difference. I recall when I moved from Texas to Colorado, I was shocked at how low it was to renew licenses/car stickers, the low utilities costs, etc., compared to Texas. I figured it was because of the state income tax in Colorado.
There are probably all kinds of tables of comparison on the internet.
dfarrah
So,
can you explain the constant transfer of federal tax dollars from high tax states to low tax states?
Exit taxes.....
how outrageous.
Just like those stupid termination fees for contracts for phone or other electronics....hey, here is something the dems could run on! They could outlaw all such exit fees!
dfarrah
It's too early to tell.
According to your Cato link, "The tax law may prompt an
outflow of mainly higher-earning households from higher-tax
states to lower-tax states.
Even before the new tax law, a substantial number of
Americans were moving from higher-tax to lower-tax states."
As I said, there may be an effect but it's far too early to discern causes. So yes, my "vast majority" explanation still works. Because on average, 10,000 Baby Boomers per day are retiring.
I know Republican theology states that people leave because of taxes but IMHO that is just a tiny portion of what drives migration.
'Taxes are the price we pay for civilized society.'
A quote from Mr. Justice Oliver Wendell Holmes.
I am not a virulent anti-tax person, as you seem to be.
I live in Massachusetts, formerly Taxachusetts. They cleaned up the tax levels 20 years ago, and the state provides a lot of services. The state ranks number one in secondary education and in overall health indexes. It is a hell of a lot more pleasant than that psuedo-Libertarian shithole nextdoor, New Hampshire. My tax rates are quite managable. Of course, I live far away from Boston, where house prices are reasonable.
As for the 10k cap, it is only a problem for idiots who paid obscene prices for inflated real estate close to Boston. And, people who did that are usually well enough compensated that they can suck up a few thousand dollars in extra taxes.
As for out migration, do you really expect intelligent, educated people to go to third world countries like Florida and Texas, where there are very few high-paying jobs, where the government doesn't care about the environment or the populace? This year, Florida had red tides on both coasts from Febuary until September, due to unregulated fertilizer runoff from sugar farmers. What little ground water Texas has is being poisoned by fracking, and there is the small problem of constant earthquakes.
As the other comment said, a lot of the movement is retirement. And, of course, the whining super rich hedge fund managers who don't really live where they live, they just have a mailing address there - those assholes are moving to low tax states, which has an outsized impact on the tax collections of the states they are leaving.
Are you saying that states must lower their tax rates to keep Wall St. weasels at home?
Please read the above links
provided to edg...
Oh, and I'm from Mass, still Taxachusetts too. So you're on board with the legislature boosting there pay in the dark of night this year -- again? You want Baker to increase his pay over $100,000 to $250,000? And I'm sure you're totally cool with Billy Bulger pulling down pensions from the State and UMass in excess of $500k.
Sheesh.
Prof: Nancy! I’m going to Greece!
Nancy: And swim the English Channel?
Prof: No. No. To ancient Greece where burning Sapho stood beside the wine dark sea. Wa de do da! Nancy, I’ve invented a time machine!
Firesign Theater
Stop the War!
hey, you forgot to mention welfare queens,
and all those people buying lobster with their SNAP money.
The earth is a multibillion-year-old sphere.
The Nazis killed millions of Jews.
On 9/11/01 a Boeing 757 (AA77) flew into the Pentagon.
AGCC is happening.
If you cannot accept these facts, I cannot fake an interest in any of your opinions.
Deleted because responded to wrong comment
Stop the presses, MA politics is corrupt.
You offer up these old as the hills problems as excuses for your across the board anti-tax stance. In the larger scope of things, these sub-million dollar bits of corruption don't even move the needle. The Big Dig alone was $15 B worth of corruption.
Is that all you got? Because all I'm hearing is a typical Republican "government is bad" rant.
Blue states lose money to red states
This is a misrepesentation of the facts worthy of Fox News. The truth is that the Federal government takes more money from high tax states than they give back to those states in taxes. Here's a chart of that
States don't move. People do.
The Feds have been giving $ back to people from Blue States not in full to those State Gvmnts ergo the discrepancy vis a vis Red State returns. It's Math. Based on formulas written and approved by Democratic Legislatures going back to the 1960's.
Regardless of politics, people are leaving Blues states for Red. You can't deny facts?
Prof: Nancy! I’m going to Greece!
Nancy: And swim the English Channel?
Prof: No. No. To ancient Greece where burning Sapho stood beside the wine dark sea. Wa de do da! Nancy, I’ve invented a time machine!
Firesign Theater
Stop the War!
People are leaving Blue states for Red because
they are short-sighted and stupid.
The earth is a multibillion-year-old sphere.
The Nazis killed millions of Jews.
On 9/11/01 a Boeing 757 (AA77) flew into the Pentagon.
AGCC is happening.
If you cannot accept these facts, I cannot fake an interest in any of your opinions.
Have you looked at
the gorgeous large houses in Texas you can buy for less than $300,000?
dfarrah
Houses in flood plains, surrounded by toxic air
(blows around rich and poor equally don't you know, starved public education, privatized prisons, lack of safety net, on and own. But yeah, lookit those house prices.
Sorry. You know all that. End of rant.
A truth of the nuclear age/climate change: we can no longer have endless war and survive on this planet. Oh sh*t.
It depends on where you are at in
Texas.
dfarrah
Not really, pollution any where the wind blows, rich or poor...
NONE of us know what areas will be most impacted by the gutting of the EPA under Mr. Trump.
A truth of the nuclear age/climate change: we can no longer have endless war and survive on this planet. Oh sh*t.
That can be said about any geographic situation.
You want to compare the best of Texas to the worst of Massachusetts. Cherry pick much?
Yeah,
but when you strap that Glock to your hip it really makes you feel like a man. AND the survivor of the shoot out was defending himself, so there are no consequences.
Heh. Shot through the heart
https://en.wikipedia.org/wiki/Firearm_death_rates_in_the_United_States_b...
Heh.
A truth of the nuclear age/climate change: we can no longer have endless war and survive on this planet. Oh sh*t.
In a proper balance of payments calculation . . .
the amount refunded to people by the federal government for state taxes should be netted from the state tax figure. I am not familiar with that particular map, but I have seen many and they all show that red states are the beneficiaries of blue states.
"Keep the government's hands off my medicare!"
Those links provide no statistics relevant to your claim
They talk about tax rates and the fleeing residents. They do not provide anything like the chart I provided.
If you want to dispute my chart, produce one of your own. Saying "Its math." simply does not cut it. I am not into believing assertions without evidence. You made a claim, its on you to produce the facts to back it up.
The diarist really isn't talking
about the ins/outs for federal taxes/federal funding per state.
He is talking about the Federal tax deductions for state income taxes and property taxes eased the overall tax burden for the wealthy. And because the wealthy could take these deductions, their opposition to state/local taxes was probably lessened.
Now, these deductions are gone, and states will likely be forced to revise their spending. And wealthy people will not be happy with these changes.
Or that is how I took what was written.
dfarrah
Thanks, same here. n/t
A truth of the nuclear age/climate change: we can no longer have endless war and survive on this planet. Oh sh*t.
As I said to EdMass, produce some statistics...
You just have more assertions without evidence.
I'm waiting.
Tip of iceberg - Dem Chair of Budget (on C-Span) just announced
that he'll be working to close about a Trillion Dollars MORE tax expenditures this coming Congress.
After I make clips of the video, I'll Tweet them out, then post the Tweets here. Not surprised, 'cause I knew Yarmuth was a budget hawk from his interviews on XM POTUS Channel.
I'd say this is 'why' (as I guessed a couple weeks ago) the 'rule' exempting tax increases for the lower 4 percentiles was nixed.
Blue Onyx
Everyone thinks they have the best dog, and none of them are wrong.
hny to you and yours!
Wonder about this guy...
Will he be the quarterback for the
Obamacare II wolf in Medicare for All sheeple clothing?
A truth of the nuclear age/climate change: we can no longer have endless war and survive on this planet. Oh sh*t.
Hi, DO--Happy New Year's to you and JB! Yeah,
I definitely wouldn't trust Yarmuth as far as I could see him. Hey, if/when you get a minute--or 3 minutes, to be exact--check out the link I posted at EB, earlier this evening. (in the Post Script)
Minutes 4:47 - 07:27 contain some worrisome declarations, regarding what he plans to do as House Budget Committee (as Chair).
I included a direct quote in the blurb at EB.
His idea of MFA is one in which Aetna testifies as a so-called stakeholder. Whew!
Hopefully, we here at C99 can be all over that topic, next year. I'll clip the video sometime next month, and hope that folks will be willing to Tweet out his words from that interview.
Hey, you Guys have a good one!
See you next year.
Cheers!
Blue Onyx
Everyone thinks they have the best dog, and none of them are wrong.
Thanks.
A truth of the nuclear age/climate change: we can no longer have endless war and survive on this planet. Oh sh*t.