Monday, September 30, 2019

Judge dismisses states' lawsuit, blue state rich to pay higher taxes

The Tax Cuts and Jobs Act of 2017 was NOT a tax cut for the richest Americans, no matter what the liberal, biased media talking heads want you to think.

I wrote about this here.

I wrote about it again, here.

Now a federal judge has dismissed a lawsuit filed by the most affected states and the rich, mostly white coastal and big city elite will pay. They will no longer be able to claim state income taxes over $10,000 on their federal tax returns, a net tax increase that will result in billions and billions of new taxes on high income earners in blue states with high state taxes.

The 2017 law was a net tax increase for the wealthiest people in the bluest of states, who have ridden the state and local tax deduction to billions in tax breaks for decades.

The best thing about this law: It hurts liberal states and lets large states with no or low income taxes skate free. Florida, Michigan, Ohio, Pennsylvania and Texas all voted for Donald Trump in 2016.

While everyone living in states that impose an income tax have enjoyed this deduction--myself included--people living in states like California, Illinois, New Jersey and New York have had it much better. Those states impose truly burdensome taxes on their citizens and their only respite has been that those taxes are deductible at the federal level.

This is a big deal, y'all. Many blue states have budget problems so dire that if their magnitude were extrapolated to the federal level, there would be blood in the streets and a torch-and-pitchfork parade to Capitol Hill.

Those previously massive budget outlays for all of the feel-good social programs, state employee salaries & pensions, abusive regulations and general nanny state intrusiveness are paid for in large part by the federal subsidy through the now-gone SALT deduction.

That means people in Alabama have paid for people in California to let the state regulate everything from their driveway size to their garden hoses. Immigrant resettlement and sanctuary state services. 10-year full vesting in retirement benefits. Free healthcare, free food, free gas, free cellphones, free internet. All paid for by working folks from Birmingham to Malbis.

Not anymore.


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