California Trying to Skirt Federal Tax Reform

California state legislators are considering declaring state income taxes to be charitable contributions and thus allow those with over $10,000 in state taxes to get their deduction on federal income tax. Those commenting on this story discuss how this scheme would blow up on them if they tried it.

Here

19 Comments on California Trying to Skirt Federal Tax Reform

  1. Here’s the fun part about this. You can’t mandate charity, so if payment of income taxes is deemed a charitable contribution, then taxpayers should be able to opt out of paying them. If the payment is mandatory, then it’s not a charitable contribution and shouldn’t qualify as such.

    If California really wants the Fed’s to come out and say that no payment to a governmental organization can constitute a charitable contribution, all they need to do is pass this.




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  2. C’mon its Kalifornia — it’s all for charity of illegals out there!

    I vote to throw the sick a–holes out of the union and then we’ll be able to balance the budget.




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  3. Maybe if you stop giving welfare benefits to all the illegal aliens you would not need to have such a high tax rate.




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  4. Why isn’t it $1K or fitty bucks?….There clearly is some racial animosity to this that earn less….




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  5. Good luck with that. Ever heard of anyone telling the IRS to effoff, I’m making up my own rules? Me neither. Penalty and interest added to tax is going to be spendy. But those rich liberals have lots of money to throw away.




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  6. A little basic math here. I just looked at my 2016 federal return, CA state. My guess is that a single person would hit around $10,000 in state taxes if he made about $150k. So a single person making around $250k would have state taxes around $20,000. Since the first $10k is deductible, that person making $250k would pay an extra 36% on the second $10k, about $3,600 extra. For a single person making $250k income, and also not factoring in the reduced federal taxes.
    I am a lot more worried about the taxes and fees that CA keeps adding, everywhere. Not planning to move anytime soon, but I sure have been thinking about it a lot more than ever.




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  7. @Left Coast Dan – Can’t you could just say you identify as a Floridian?
    I hear that this “identifying” shit is all the rage there and it’s not just accepted but positively celebrated.




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