Good day all. One of the mantra’s of the Progressive Liberal Democrats, (AKA CommuNazis), is calling any plan to cut taxes by the Republicans as “Tax cuts for the rich!” This has been their battle cry since President Trump signed a massive tax cut into law last year.
However, rather then being “Tax cuts for the Rich!” it was the wealthy that got it in the wallet. One of the things the tax law did was cap the mortgage deduction on houses as well as deductions for other federal taxes to a maximum of $10,000.00.
This hit the states run by Democrats particularly hard, since this is where may of their rich donors live. With all their state taxes no longer deductible, many of the “Rich” are seeing actual hits to their bank accounts. Their response has been simple. They’ve been moving out of the high tax Progressive states for states that don’t have massive levels of taxation, and they’ve been taking their money with them.
This has caused tax revenues for the Blue states to basically collapse, causing the tax fattened hyenas in the various state governments to start raising taxes on the middle class. Since these people are less able to afford these taxes, they’re leaving too if they can, and the cycle is continuing. The states have been demanding that their congresscritters “Do something about this”, and now the Democrats are coming to the rescue. Here are the details from the Washington Examiner:
House Democrats advanced a bill Wednesday to temporarily repeal the limitation on state and local tax deductions imposed by the 2017 GOP tax overhaul, legislation that would primarily benefit wealthy taxpayers in blue states. The proposal is certain not to pass in the Senate but demonstrates congressional Democrats’ priorities in responding to the Trump tax cuts.
Yes, it’s protecting their donor base. It’s hard to get someone to donate to you when they’ve moved out of the state you allegedly represent. As for all the people who are benefiting from the new tax law? The usual answer from the Democrats is “We’re saving you from the Evil President Trump who wants you to keep all that dirty money you have earned!
The legislation gained approval in a party-line vote in the House Ways & Means Committee, 24-17.
Wait, the Republicans opposed tax breaks for the rich? Now I’m confused. I thought on the ever so caring progressive liberal Democrats cared about the taxpayers.
The bill would strike down the part of the tax law that sets a $10,000 cap on federal tax deductions for state and local taxes paid, a provision that particularly affects high-tax states like New York, New Jersey, and California.
“It was a real punch in the gut to a lot of different communities,” said Democrat Tom Suozzi of New York, who sponsored the bill with fellow Democrats Mike Thompson of California and Bill Pascrell of New Jersey. “It’s really about fairness,” said Suozzi.
Oh that’s funny! Fairness? What’s fair about the Progressive Socialist Democrats running states like New York, Kalifornistan and Illinois right into the fiscal hole and expected the taxpayers from other states to bail them out?
The Joint Committee on Taxation estimated in a report released in June that the repeal would cut taxes for 13.1 million taxpayers in 2019, 99% of whom have incomes of at least $100,000. Furthermore, over 50% of the benefit would go to those with incomes of at least $1 million.
The left-leaning Center on Budget and Policy Priorities, meanwhile, estimated that the top 1% of households would receive 57% of the benefit of repeal, and the top 5% of households would receive over 80% of the benefit, while the bottom 80% of households would receive just 4%.
The Tax Foundation, a right-of-center think tank, noted in a June 2019 analysis of the deduction, commonly referred to as the “SALT” deduction, that repealing the $10,000 cap would be a “regressive tax policy change” that would overwhelmingly benefit the top fifth of taxpayers.
Of course, the Progressive Liberal Democrats don’t see it that way. They see it as a way to help their states.
Many Democrats say that the cap on SALT deductions unfairly affects taxpayers in their states, where incomes and housing prices are higher. They argue that the Republican bill targeted Democratic voters in order to pay for the tax cuts.
Excuse me, but isn’t the traditional Democrat constituent supposed to be the “Working man?” These are people who don’t generally make 6 figure salaries and don’t live in million dollar homes. Oh, of course, how silly of me. These are the “Little people” that mean basically nothing to the Democrat elites. Their job is to just vote Democrats and then shut up and go away.
Of course, the Blue States, seeing their rich constituents pulling up stakes scared the living daylights out of them. These Progressive political types have been plundering the state treasuries for decades, paying off Unions and giving sweetheart deals to their actual constituencies, the ultra rich Progressive class. Once the SALT deductions went bye bye, the Progressive Liberal Democrats had to do something to protect their benefactors.
High-tax states like Connecticut, New York, and New Jersey responded to the 2017 tax overhaul by passing laws to create charitable funds to which taxpayers could give state tax payments, thereby laundering state taxes into federally tax-deductible charitable contributions, bypassing the SALT deduction cap.
I love the choice of words in that paragraph, laundering. That is something criminals do to hide their ill gotten gains. Sadly for them, that brilliant idea, like so many brilliant ideas by the Democrats, failed miserably.
A federal judge in New York ruled in September that the 2017 federal tax overhaul’s cap on state and local deductions was not an “unconstitutional assault” on the high-state taxes, as Democrats had alleged.
So now the chickens, as they say, are coming home to roost. The Progressive Blue State Democrats have been buying off their union supporters with tax money taken from the rich, knowing that the rich could afford very expensive tax lawyers to find every loophole to recover that money and then some.
Once all those loopholes were closed, the progressive liberal wealthy elites finally had to actually pay through the proverbial nose. Once they figured out what it was actually going to cost them if they remained, they did what anyone with more then 2 functioning brain cells would do. They moved out and took their money with them. This has accelerated the financial death spiral of these states, and when it all comes crashing down, well, all those Democrats are going to be tossed out and have to find jobs that they are actually qualified for. I understand McDonalds is hiring.
Thatisall
(1 votes, average: 5.00 out of 5)
Loading...
~The Angry Webmaster~
