Tag Archives: taxes

Mid-Term Elections

Posted on by
Reply

At their retreat last week, Republicans indicated that they intend to run heavily on the tax reform they got through at the end of last year.  It’s good to have something positive on which to run, especially since, at least for the near term, the Progressive-Democratic Party has nothing on which to campaign other than its #NeverTrump and #NothingRepublicanNoWay platform and its standard disparagement of ordinary Americans like House Minority Leader Nancy Pelosi’s (D, CA) claim that the tax reform’s aftermath of bonuses and pay raises are just crumbs.

As an aside, it must be good to be as rich as Pelosi, that a $1,000 bonus or an increase in take-home pay of some $2,000 per year is just chump change.  President Donald Trump is stinking rich, Vstly more so than Pelosi, and he doesn’t think this added money is trivial.  I’m not stinking rich; I’m not even as rich as Pelosi—not by a long shot—those $1,000 matter to me, as do the added $2,000/yr take-home.

Back to my point.  Republicans can’t only run on their tax reform, though.  They need to add three things to their campaign.  The first addresses, preemptively, the fact that the personal income tax rate cuts—that increase in take-home—expire in about eight years.  Republicans need to emphasize that the only way that rate cut expiration actually would occur would be if Progressive-Democrats in Congress (especially in the Senate where they can filibuster) block those cuts from being extended or made permanent.

The second thing is to go on the offensive regarding DACA.  Most Americans, and it’s pretty much evenly spread across party and independent lines, want the children who were brought by their parents into the US illegally dealt with compassionately and with finality: no more doubt hanging over these folks’ heads.  A couple of Republican proposals for achieving this are on offer. The Republicans currently in office need to push heavily and loudly one or the other or both of them this year, even though—even because—it’s an election year.  Demonstrate that they’re not the ones too timid to do something major and concrete in an election year.

Republicans also need to hammer on Progressive-Democrat Congressmen constantly saying “No.”  Republicans need to be asking loudly, both in their own districts, in their neighboring Progressive-Democrat incumbents’ districts, and in neighboring open districts why Progressive-Democrats so vociferously oppose any plan on offer that takes care of the DACA children—and that does so largely on Progressive-Democrat terms.  Or do the Progressive-Democrats see these folks only as a talking point and not as a group of human beings?

It would have been good if President Donald Trump, during his SOTU speech last week, had pointed to the Dreamers (not the same group as DACA, but there’s tremendous overlap) in the gallery as guests of Progressive-Democrat Congressmen and said to them, “I have a proposal put before Congress that addresses your needs, including a path to citizenship.  Why are the Democrats so opposed to that?”  But that’s water under the bridge, and he still has time to ask that.  Often.

The third thing Republicans need to add to their campaign is their plan for the future.  What do these guys want to do to make American lives better, and how—concretely, an aspect Republicans never have done well—will those things actually make our lives better?

Disparate Impact

Posted on by
Reply

High-tax States, principally States run by Progressive-Democrat regimes, don’t like the tax reform’s cap on State and local taxes.

The governors of New York, New Jersey, and Connecticut said on Friday that they would sue the federal government to overturn the new US tax law, saying the measure unconstitutionally discriminates against Democratic-leaning states.

This is just the raw sewage of disparate impact being spread across a tax bill—never mind that the tax reform is uniformly applied across all States, across all businesses and individual taxpayers.  Never mind, too, that if some taxpayers, if some taxing jurisdictions, are impacted differently than others, it’s solely a result of the conscious individual, business, and State and local government choices.  At least when “disparate impact” is imputed to matters of race, the alleged victims have no choice in their position in the differences alleged.

Here’s an example of the foolishness and disingenuousness of the suit:

The legal action will argue that the new tax law’s cap on state and local tax deductions infringes on states’ rights and amounts to double taxation[.]

The States have no “right” to a Federal income tax deduction.  Beyond that, the cap can’t possibly represent double taxation; the only tax here is the SALT applied by those State and local jurisdictions.  Not being able to deduct a fraction of that (or any of it, come to that) from a Federal income tax bill is no tax at all.

One hopes the Federal trial judge dismisses the suit out of hand and strongly sanctions the governments and Attorneys General of New York, New Jersey, and Connecticut for bringing such a frivolous suit.  Failing that, one hopes the Supreme Court, where the suit will end regardless of the trial court outcome, itself firmly chastises the State governments and Attorneys General.

Taxing and Spending in New York

Posted on by
Reply

Bookending (in more than one sense of the term) California’s move to confiscate business’ tax cuts, New York’s Progressive-Democrat governor Andrew Cuomo wants to increase the taxes levied on that State’s citizens by $1 billion.  He’s claiming, in all seriousness,

You can’t possibly get anywhere near where you want to be on education and health care unless you raise revenues.  It’s just too big a deficit, and the choice of cutting education or cutting health care I don’t think is a place anyone wants to go to this year. So you have to raise revenue.

This is a false choice.  The largest cause of the State’s deficit, after all, is its spending level, not the size of its revenue.  Thus, one choice Cuomo is carefully eliding is this: the State’s government could cut spending across the board; there is, after all, more going on in New York than just education and health coverage costs.

Alternatively (which Cuomo also avoids mentioning), the State’s government could simply reallocate existing spending into education and health care.

Still another alternative unmentioned, the State’s government could fix its runaway pension funds for its public unions by using accurate projections of investment return rates and increasing the contributions union members and the unions themselves make to the funds.  Along with this, the State’s government could fix its health coverage program, replacing its version of Obamacare with market-based solutions, and freeing the citizens to buy the health plans that suit them rather than suiting Government.  Or not buy at all.

There’s simply no need for more revenue for the State’s government, no need to take even more money out of the pockets of the State’s citizens.

Unfortunately, neither the man nor his Party cronies in the legislature are emotionally capable of conceiving of actually cutting spending, or even of reallocating existing spending.

Businesses Behind the Tree

Posted on by
1

California wants the Federal tax reform-saved money for itself, and they want a State Constitutional amendment to make the seizure permanent.

A proposed Assembly Constitutional Amendment by Assemblymen Kevin McCarty (D) and Phil Ting (D) would create a tax surcharge on California companies making more than $1 million….

The Progressive-Democrats claim the money would go to “programs that benefit low-income and middle-class families,” but that’s just tear-jerking.  The State’s government would divert the monies to favored programs at convenience.  That’s minor, though.

The point of the proposal is to take the money from business—the surcharge is a tax of fully 50% of business’ Federal tax cut—because Government Knows Better, and business doesn’t deserve it, anyway.  Nor did they earn it.  Government did that.

Don’t tax you, don’t tax me.  Tax that business behind the tree.  That’s not quite what Russell Long (D, LA) said all those years ago, but California’s new tax proposal is close in spirit.  What the Progressive-Democrats in California’s legislature and governor’s mansion are missing, though, is another sentiment of Long’s regarding tax breaks for businesses:

I have become convinced you’re going to have to have capital if you’re going to have capitalism.

This is an understanding completely absent in the Progressive-Democratic Party.

Poverty and Concern for the Rich

Posted on by
Reply

Recall the Progressive-Democratic Party-controlled legislature with their Progressive-Democrat governor who run things in California.  In response to the just-passed tax reform bill’s capping of state and local tax deductions on the Federal income tax form at $10,000, these worthies have introduced a bill that would create a State-run “charity” foundation into which California citizens could make “donations” and receive a dollar-for-dollar tax credit that they could then apply to their SALT requirements that exceed those $10,000.

Never mind that, as The Wall Street Journal‘s Editorial Board pointed out last Friday,

According to IRS data, California’s 71,000 taxpayers with million-dollar incomes deducted on average $462,500 in 2015 compared to $6,940 for individuals making between $50,000 and $100,000. Few California middle-class taxpayers will be harmed by the $10,000 deduction cap since the standard deduction has doubled to $12,000.

Kevin De León, President Pro Tempore of the California State Senate, and the Progressive-Democrat who introduced the bill, knows this full well.  These worthies are interested in protecting their rich buddies and donors.

Couple this with what the Los Angeles Times published last Sunday.  Twenty per cent of California residents are poor according to the Census Bureau’s Supplemental Poverty Measure, which considers the cost of housing, food, utilities, and clothing.  The Measure, importantly, also includes noncash government assistance in its income measure.  This 20% poverty rate is the highest rate in our nation.  It gets worse:

California recipients of state aid receive a disproportionately large share of it in no-strings-attached cash disbursements. It’s as though welfare reform passed California by, leaving a dependency trap in place.

But think about that in conjunction with the California progressive elite’s protection of their rich buds.  It’s not “as though welfare reform passed California by,” it has been by design that those elites created that dependency trap.  That’s how they get the votes—the poor have far more votes than their wealthy friends—and with those votes the elites can stay in power, exchanging favors and money with their wealthy associates.

Of course, the LAT laid most of this travesty for the poor part of the balance off on an exploding social-services community with its 883,000 full-time-equivalent state and local employees (as of 2014).  But who hires and provides the payroll and other budgets for these folks?  Yewbetcha.