Government

Politicians are truly an abomination in the human experience 🧐

Governors and legislative leaders in New York, California and other states are considering legal challenges to elements of the law that they say unfairly single out parts of the country. They are looking at ways

One proposal would replace state income taxes, which are no longer fully deductible under the new law, with payroll taxes on employers, which are deductible. Another idea would be to allow residents to replace their state income tax payments with tax-deductible charitable contributions to their state governments.

Such ideas may sound far-fetched. And until recently, they were mostly the province of tax professors and bloggers. But they are now getting serious consideration in state capitols where some lawmakers see the Republican law as a thinly veiled assault on parts of the country that typically vote for Democrats.

Companies, of course, have long sought to exploit loopholes in the tax code. Governments, as a rule, have not. State leaders, however, said Congress, in singling out certain states, had broken an implicit compact with the states.

“The game has changed,” said Stephen M. Sweeney, the Democratic president of New Jersey’s Senate. “They’ve completely turned the tables against us.” New York Times 1-1-18

“They’ve completely turned the tables against us.”‼️ Oh my!

The people who have turned the tables against us are the state politicians who have mismanaged state finances, have pandered to public worker unions and allowed our taxes to climb well beyond affordability for most of their citizens. And now that circumstances have placed a spotlight on them, they squeal like a stuck pig.

This is like the person who lives beyond his means; accumulates large credit card debt and screams when interest rates rise.

If these high tax states have been spending and creating long-term liabilities under the assumption their high taxes will be subsidized by federal taxpayers so it’s all okay, then who is to blame now? Is it any coincidence that these states have long been headed by and/or controlled by liberal leaning individuals?

As it turns out, nothing is free, not even promises from government. 🤪

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3 replies »

  1. Changing state income taxes on wage income to employer paid wage taxes is interesting – it has an added benefit to the individual of avoiding federal and FICA and FICA-Med taxes, and the added benefit of avoiding FICA-MED and FICA employer paid taxes.

    Negatives to employers – could be none
    Negative to individuals – lower wage based benefits – employer match, social security, etc.

    Never heard of that myself before.

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  2. New Jersey has a high tax rate mostly due to many reasons which are self inflicted. But in defense of those overspending state politicians, New Jersey receives less in return of the federal taxes that it sends to Washington than other most states. Depending on the study, it is usually in the bottom 10th in tax dollars returned. Several of these high tax states are in the same boat. Just maybe if more of the states federal tax money got returned to be used in those states, then maybe they could have lower state taxes rates.

    But more than likely, the public unions would get better benefits and the rates would stay the same.

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  3. Somewhat to my surprise, I am a little sympathetic with Jerry Brown and Andrew Cuomo. But just a little. I’ve lived in both states and find their political system largely inefficient and corrupt. But the federal tax system has accommodated to some degree the awful situation in both states, as well as several others of course. So now a day of reckoning is at hand. There is blame enough to go around and come around.

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