Friday, August 24, 2018

Why high tax States should embrace this.

Taxpayers scramble as proposed IRS rule on local taxes wrecks workaround strategy.

I think it's really ironic that all these high tax States said they were happy paying higher taxes - yet now they are trying to get out of paying higher taxes.

When the SALT law went into effect I wasn't crazy about it. But I thought it was a necessary evil and I will tell you why.

Most people don't pay attention to their property tax bills. So they don't pay attention to all the crap the cities try to cram in there. I have a huge stick up my butt about it because I don't have children. Which means I pay a lot of taxes on children don't have, But I do have a rental - and that means for every tax - I get hit with it twice.

This year my city tried to cram in a subsidy for a theater that the city owns. I don't think it even makes money. So of course they were going to try to get the property owners to pay for it. Remember I get hit twice. They were even going to broaden the cities charter because a theater has nothing to do with city functions. You see where I am going with this?

The only way to get these cities to stop crap like that is making so you can't deduct as much stuff. Then you start paying attention to what your cities are doing because you have skin in the game now. You can't just write it off and not care.


  1. I was really annoyed that governor dimwitted Moonbeam was mad about the new fed tax laws because dopey liberals would have to pay more taxes. Well, you are not exactly poor governor, so would you not be happy to pay more? Why should the rest of the country subsidize your state's high tax structure?

  2. I don't understand how other states subsidize us. We get pretty butt pounded with the taxes.

  3. Capital of Texas RefugeeSaturday, August 25, 2018 5:13:00 PM

    I was OK with paying higher property taxes ... for part of a year.

    But there was a method to my madness.

    Every year the county tax assessors would try to notch up property taxes, but you could contest the new rate, so I did that every year.

    And every year, the county tax assessors would figure out that they didn't have enough money to push through the litigation needed for higher property taxes on certain properties, so they'd "re-assess" the property and tell you that they were OK with the old rate.

    Except I didn't do this during my last year there, just so I could get the county tax assessment to agree with the much higher price on the house that I wanted to sell it for ...

    Otherwise, fortunately most of the absurd crap that California's bureaucrats want has to be funded by California, although this doesn't help the state's long-term budgets because of having to borrow some of the money.

    But without taking that into account, the Federal picture isn't all that bad.

    In fact, when it comes to taking Federal money, California almost appears to be fiscally responsible ... given the fact that there isn't a single state that's actually fiscally responsible.


  4. It's not property taxes, but imagine the outrage if the people who have income taxes deducted regularly from their check before they even see the checks had to write a quarterly check to the IRS like self-employed people have to.

    Then the next step would be to change the tax laws so that 100% of the taxes (federal income) weren't being paid by less than 45% (40%) of Americans. Except that might set off more of a commotion than the first idea.

    Still on the palouse