CA Political Review: Democratic state lawmakers’ interest in pursuing an unprecedented plan to minimize the hit that California’s high-income residents face because of the federal tax overhaul’s $10,000 cap on deductibility of state and local taxes may be losing momentum – undermined by strong warnings from Treasury Secretary Steven Mnuchin, who oversees the Internal Revenue Service, and by a new analysis that says the IRS could easily squelch the maneuver.
Senate President Pro Tem Kevin de Leon, D-Los Angeles introduced Senate Bill 227 early this month. It would allow the estimated 6 million Californians who itemize their federal income taxes to effectively continue to write off state and local tax deductions in excess of $10,000 by allowing them to pay their state taxes to a state charitable foundation, the California Excellence Fund.
Tax experts note that states have long allowed tax deductions for charitable donations and say de Leon’s ploy is protected by the fact that tax laws are traditionally subject to stricter interpretation than most federal laws because of concerns that a rogue IRS could target individuals or companies it didn’t like.
Democratic lawmakers embraced de Leon’s proposal, saying the move would allow the 6 million state taxpayers who itemize deductions to save an average of more than $8,000 a year. read more
You have to make more than around $250k as a single person to fit in the category of having a CA income tax over $10k. So it isn’t really 6 million people. Just the well-off ones. You know, the ones that in 2016 CA kept a 2% additional income tax on, which was supposed to be a short-term tax ending at the end of 2016 but the legislators liked it enough to put the extension on the ballot. Yeah, the truth hurts California.
A friend is potentially going to make a lot of money this year or next, and is very seriously considering moving to a different state. He can always visit his wife and kids! 🙂
of course this is illegal. If the state of Califucktard was a charitable organization and your taxes were a donation, they would have to admit donating to them is optional. Will Califucktard arrest citizens who decide not to donate, or is the “donation” of income taxes and property taxes required by law? hmmmmm. stupid idea and it will cost the citizens a lot of trouble and fines.
This is nothing more than CA reps grasping at straws to keep the wealthy in the state. If the CA income tax wasn’t so high in the first place, the $10k cap wouldn’t be such a big deal. Now they literally want you to donate money to a state charity in order to “save.” What a goddamn joke. Before the taxes and rent were so damn high, people were able and willing to donate to a charity of their choosing. Now the charities that actually need contributions are going to get passed over for a state run charity designed specifically to back off taxes (you’re a beneficiary in the charity you contribute to!) WTF kinda backwards communist shit is this??? Oh, CA, right….
eternal cracker p ,
“CA reps grasping at straws”
In case you missed the memo, straws are now illegal here.
Yeah, I could see how CA would ban anything that would be perceived to suck otherwise the whole state would be banned, with the exception of cucksucking (your
wifepartner giving some otherdudesoy boy a BJ).I pay no taxes here for about another two years. I’ll hopefully be gone by then.
State taxpayers who itemize deductions to save an average of more than $8,000 a year.= eight crumbs using Pelosi math.
Have never heard of anyone pulling the wool over the IRS’s eyes. But, hey, filthy rich liberal Kaliphornians, give it your best shot. So what if you have to pay 50 grand in attorney fees, CPA fees, court fees, and IRS fines to save 10 grand. Go for it. Got my money on the IRS.
@Left Coast Dan
Like Nancy Pelosi and Diane Feinstein.
Good luck Brad!!
Instead of coming up with these insane schemes, ask the leaders of the low-tax states how they do it. They seem like reasonable people, they will help you.
@Left Coast Dan,
Making $250k/yr is two professional incomes in California, and yes for straight income tax purposes you have to make more than that. And what happens to property taxes on all those Million dollar condo’s? I spent a year out there in ’14 and even my 10+ year old truck cost almost $500/yr to register. I’d have to ask my wife if VWF fee’s are considered deductible property taxes, but the property taxes on over-priced housing almost certainly are. Prop 13’s 1% with a $1M house and you’re over the limit with zero taxable income.
Kali Refugee