One of the largest, if not the largest, millionaire tax dodges was the ability for the wealthy who live in high-tax states to deduct their state and local income taxes from their federal income tax returns.

Trump and Republicans did away with this loophole rightfully claiming that the loophole forced taxpayers in fiscally responsible states to subsidize irresponsible state budgets in Illinois, New York and California.

Now that the left has control, Speaker Nancy Pelosi is listening to her rich friends and trying to get the millionaire tax deduction back into the federal tax code. Self-proclaimed socialist Sen. Bernie Sanders is standing against them, along with every Republican senator.

Say what you might about Sanders, but at least he walks his talk. At least his idea of socialism isn't of the hypocritical variety. The rest of the Democrats demand American taxpayers fund Marxist dreams of universal equity, including undocumented immigrants, until their donors’ bank accounts become a target of fiscal responsibility.

Katrina Evenhouse

Dickinson

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(35) comments

Carlos Ponce

Under the 2017 Tax Cuts and Jobs Act (TCJA), taxes paid to state and local governments could be deducted against Federal income taxes. But it was capped at $10,000.

Democrats want to remove the cap on deductible SALT (State and Local Taxes) which would benefit the wealthy.

The Tax Policy Center finds, "Lifting the SALT cap would be massive tax cut for rich, especially the VERY rich."

And Democrats claim everyone should pay their fair share. [rolleyes]

Nice Letter, Katrina!

Bailey Jones

[lol] "Marxist dreams of universal equity" - I always thought this was the American Dream. [lol]

I stand with Bernie on this. All those rich liberals should just move to Texas.

Carlos Ponce

Universal equity is not the American Dream, Bailey. Do not confuse equity with equality.

Bailey Jones

eq·ui·ty /ˈekwədē/ noun 1. the quality of being fair and impartial.

That's always been my dream, Carlols. Sorry if it's not yours.

Norman Pappous

@Bailey, perhaps you could tell us what you believe to be the difference(s) between equality and equity based on the definition you provided? Personally it is my contention that the wordsmiths at places like Merriam/Webster dictionary are playing games with definitions to suit political ends.

https://www1.cbn.com/cbnnews/politics/2020/october/websters-dictionary-suddenly-changes-definition-of-preference-to-back-up-dems-attacks-on-amy-coney-barrett

Carlos Ponce

Bailey gave the dictionary definition of equity, not the Democrat Party use of the word .

"Equity and inclusion means that you will believe what they tell you to believe, or else you're a terrorist and they can hurt you because we hurt terrorists." Tuxcker Carlson

From Real Clear Politics: "Democrats once talked about 'equal opportunity' and quoted the late Rev. Martin Luther King Jr. But now they've hitched their wagons to 'equity,' which has nothing to do with opportunity but is all about using government to dictate outcomes based on race and gender."

“Equity” in practice becomes the redistribution of social and economic goods in accordance with subjective assessments of immutable privileges and disadvantages associated with whole demographics. The nascent Biden administration’s approach to Asian-American affairs illustrates the folly in this line of thinking."

American Thinker: "Whereas equality means providing the same to all, equity means recognizing that we do not all start from the same place and must acknowledge and make adjustments to imbalances."

Bailey is easily fooled by the use of words/ "Progressive" does not represent "progress" in the Democrat Party.

Carlos Ponce

Bailey Jones: The man who can't spell.

Bailey Jones

Norman, I don't think I've ever heard a dictionary be accused of being political, but to answer your question, the words aren't the issue here. The American Dream, as it was taught to me in hundreds of forced recitations of the pledge of allegiance, is simply "liberty and justice for all". This phrase, which surely falls under the (presumably) Marxist Merriam/Webster definition of "equity", is best explained in the preamble to the constitution -"We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defense, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity." The most perfect union is one in which the blessings of liberty - education, fair pay, equal employment opportunities, equal access to banking, housing, clean water, clean air, health care, etc., equal treatment under the law and at the hands of government agents (cops, judges, etc.) - are not only available but "secured" for every citizen regardless of race, ethnicity, religion, lifestyle, or zip code. (It's a national disgrace that the #1 predictor for success or failure in this country is zip code.)

I've been endlessly entertained by white conservative America's insistence that racial equality is a communist idea. Surely it is a Christian idea, and the very foundation for our democracy - in word if not in deed. Yet a reading of American history reveals it to have been considered, at least by white conservatives, to be a most radical idea. One of the excuses given by white conservatives for the many anti-black riots of 1919 - 1921 era is that those who proposed racial equality were communists. MLK was painted by many white conservatives (not least the head of our FBI) as being a communist. Nelson Mandela was condemned as a communist on the floor of the US Congress during apartheid. Our mutual friend, Carlos, is endlessly spewing how one of the founders of BLM is a Marxist. It's an old, tiresome, boring cliché from old, tiresome, boring conservatives who - although they may profess the ideals of equality - respond to any actual movement towards equality by condemning it as a communist plot.

I hope that clarifies my position.

Carlos Ponce

"I don't think I've ever heard a dictionary be accused of being political" How VERY Orwellian, Bailey!

Norman Pappous

@Bailey, did you bother to read my link before you said this? "Norman, I don't think I've ever heard a dictionary be accused of being political"

Bailey Jones

No Norman, I didn't read your link. Seeing as it came from CBN I didn't see the point. But now I have read it. Quite the tempest in a teapot. Good for Merriam Webster! Although I use the term "sexual preference" myself I can see how it could be deemed offensive. Sexual orientation isn't a choice.

I don't see this as a political change - as, for instance, if a dictionary changed French Fries to Freedom Fries. I imagine the dictionary was Twitter-shamed into keeping up with the times. And they are a-changin'.

Don Schlessinger

Bailey your rich Marxist brothers and sisters can't handle Texas.

George Laiacona

This is just one of the many differences that the Republicans and Democrats have between the two political parties. As time goes on we can expect more.

Carlos Ponce

So Democrats are in favor of tax breaks for the rich, make that filthy rich.

Gary Scoggin

The bottom line is that state and local governments have to raise money to operate. This is normally done through a combination of income taxes, property taxes, sales taxes and franchise taxes. The key thing being that they are all taxes.

The decision to be made is whether or not money paid in these state and local taxes should be exempted from federal income tax. I can support either a yes or no to that question so long as the answer is that citizens of all states are treated equally. So, as a Texan, where we have no income tax but higher sales and property taxes, I have the same ability for deductions as someone from, say, Oregon, where they have very low sales taxes but high income taxes.

Carlos Ponce

Are people moving to Oregon or Texas? There's a lot more involved.

Gary Scoggin

You missed my point. I'm just saying that people from all states should be treated equally no matter which approach a state uses to fund its operations.

Carlos Ponce

States ARE treated equally. What the Democrat Animal Farm wants is for high taxing Blue States to be treated "special".

Gary Scoggin

Carlos, I think we are in general agreement here. I'm just saying if there are limits to deductability, they should apply equaly no matter the underlying local or state tax structure.

Carlos Ponce

Let me repeat: What the Democrat Animal Farm wants is for high taxing Blue States to be treated "special".

Gary Scoggin

I think we agree that the system needs to be fair. Why won't you take yes for an answer?

Carlos Ponce

As long as we agree what Democrats propose IS NOT fair.

Craig Mason

I am not rich and I enjoyed being able to use that deduction. I also no other small business people who were negatively impacted by the change in tax law.

Carlos Ponce

Under the 2017 tax law you may deduct up to $10,000. Since you aew "not rich" the cap has no effect on you. And businesses fall under a different law.

Ron Binkley

I'm not rich either but, I have seen my property taxes increase from $7K a year to almost $13K this year on my homestead property. Higher taxes just rise with the growing economy in Texas. I could sure use that extra $3K deduction. Also, during my 36 year Real Estate career I've been fortunate enough to purchase a couple rental properties to use for my retirement. Since I'm self-employed I don't get the luxury of a 401K or a matching investment from my employer. There is NO CAP on rental property assessments. Again, due to the Texas economy, I have seen my values rise from 30% to 65% every year for the last 5 years. That equates to thousands of dollars more in taxes. I can't raise rents to cover that extra burden. Just because me taxes have gone up $200 a month doesn't means that a tenant can handle a rent increase anywhere near that amount. We need a CAP on taxes on rental properties. I believe New Mexico has a 3% CAP on your homestead property and 6% on investment properties. Even if we kept the 10% on our homesteads and 15% on our investment properties it would great.

Craig Mason

Meant to write know, not no LOL

Gary Miller

Biden says he wants higher income taxes on the rich. That is a progressive scam. if the tax rate on the rich is raised to 100% the rich would pay very little more than now. Very little income of the rich is "earned income". They pay other kinds of taxes. Like State and local taxes. Many wealthy paid little or no federal income taxes by deducting state and local taxes. Tax lawyers cost less than federal taxes.

Gary Miller

High tax states are tax havens for the wealthy.

Dan Freeman

Ms Evenhouse writes: “Trump and Republicans did away with this loophole rightfully claiming that the loophole forced taxpayers in fiscally responsible states to subsidize irresponsible state budgets in Illinois, New York and California.” I wondered who gets subsidized. It turns out that of the ten most subsidized, nine are “red states” including Mississippi, Alabama, Kentucky, and South Carolina. Of the ten least subsidized half are blue and half are red. Among the states she lists, Texas out ranks them all in the magnitude of taxpayer subsidy. So it is not a red-blue thing, it is mostly about poverty in the South.

https://www.moneygeek.com/living/states-most-reliant-federal-government/

Norman Pappous

@Dan "The states with the highest personal income per capita are Connecticut, Massachusetts, New York and New Jersey. The states with the lowest personal income per capita are Mississippi, West Virginia, Alabama, New Mexico and Kentucky. These are the exact same states with the lowest and highest balance of payment ratios, respectively. It is hypocritical to decry the tax code for taxing high-income states more than low income states while intentionally designing tax policies with that effect."

https://thehill.com/opinion/finance/502321-no-blue-states-do-not-bailout-red-states

Dan Freeman

Mr. Pappous the article in the Hill is an opinion piece based on unverifiable data. As a former teacher use should rely on primary data, not opinion.

Texas in fact depends on Federal aid more than the blue states in the article. We should be thankful for the federal system that supports us, in spite of our blind dependence on unbridled capitalism that has led to thousands of excess COVID deaths and hundreds more from hypothermia.

Norman Pappous

Uh yeah. I think you need to re-read both articles.

Dan Freeman

Brilliant repartee again from a failed economist.

George Caros

I agree with you we tax all the millionaires more and close all loop holes so they pay there fair percentage of income as us

Norman Pappous

@George [thumbup][thumbup]

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