Maryland will sue Trump administration over state tax-deduction cap

[Dont Taz Me Bro]

So much amusement here, so much hypocrisy.

One, they are going to lose. The federal government can set what ever tax policy they like within the boundaries of the Constitution. Deductions have been eliminated or reduced in the past. There is nothing illegal about capping the SALT deduction.

Two, Democrats suddenly believe in the Tenth Amendment, citing state sovereignty. Where was this support for sovereignty during the ObamaCare debates?

Three, whining class warfare instigators suddenly have a problem paying the higher taxes they've been requesting for years. Perhaps these states should get their fiscal houses in order and they won't have to have such high SALT rates in the first place.

Maryland lines up to sue Trump over new cap on state and local tax deductions

 

[martybegan]

So much amusement here, so much hypocrisy.

One, they are going to lose. The federal government can set what ever tax policy they like within the boundaries of the Constitution. Deductions have been eliminated or reduced in the past. There is nothing illegal about capping the SALT deduction.

Two, Democrats suddenly believe in the Tenth Amendment, citing state sovereignty. Where was this support for sovereignty during the ObamaCare debates?

Three, whining class warfare instigators suddenly have a problem paying the higher taxes they've been requesting for years. Perhaps these states should get their fiscal houses in order and they won't have to have such high SALT rates in the first place.

Maryland lines up to sue Trump over new cap on state and local tax deductions

I'm sure they will find some lefty progressive district judge and get a favorable result somewhere.

Obama packed the courts with too many lefty jurists for this not to happen.

 

[Toddsterpatriot]

So much amusement here, so much hypocrisy.

One, they are going to lose. The federal government can set what ever tax policy they like within the boundaries of the Constitution. Deductions have been eliminated or reduced in the past. There is nothing illegal about capping the SALT deduction.

Two, Democrats suddenly believe in the Tenth Amendment, citing state sovereignty. Where was this support for sovereignty during the ObamaCare debates?

Three, whining class warfare instigators suddenly have a problem paying the higher taxes they've been requesting for years. Perhaps these states should get their fiscal houses in order and they won't have to have such high SALT rates in the first place.

Maryland lines up to sue Trump over new cap on state and local tax deductions

The new cap “disrupts the longstanding balance of taxing power between the states and the federal government,” Mr. Frosh said Thursday.

The states still have the power to raise or lower their own tax rates. Idiots.

 

[my2¢]

Since I'm not a resident of Maryland I can be amused because it isn't my tax money they'd be pissing down the drain if they go ahead with this lawsuit.

 

[TroglocratsRdumb]

The high tax states were being subsidized by the low tax states through state tax deduction. It was unfair.

 

[william the wie]

CA, NY, IL, NJ, VA, MA, DE, and no doubt other states will join in this and other stupid stunts.

 

[harmonica]

so the feds can tell states how large a state deduction can be?? what are the advantages/disadvantages for the feds??
thanks all replies

 

[Siete]

so the feds can tell states how large a state deduction can be?? what are the advantages/disadvantages for the feds??
thanks all replies

the advantage is a dictatorship for our government ... why let the people who live in the state vote and decide what is best for them and what it takes to run their state ... the government knows best, ask any RW'r.

 

[RWNJ]

CA, NY, IL, NJ, VA, MA, DE, and no doubt other states will join in this and other stupid stunts.

If liberals understood economics, they wouldn't be liberals.

 

[william the wie]

so the feds can tell states how large a state deduction can be?? what are the advantages/disadvantages for the feds??
thanks all replies

The feds cannot tell the state what to deduct within the states and the states cannot tell the Feds what to deduct or not.

 

[harmonica]

so the feds can tell states how large a state deduction can be?? what are the advantages/disadvantages for the feds??
thanks all replies

The feds cannot tell the state what to deduct within the states and the states cannot tell the Feds what to deduct or not.

then why the suit?

 

[harmonica]

so the feds can tell states how large a state deduction can be?? what are the advantages/disadvantages for the feds??
thanks all replies

the advantage is a dictatorship for our government ... why let the people who live in the state vote and decide what is best for them and what it takes to run their state ... the government knows best, ask any RW'r.

don't the feds have enough to worry about?

 

[Toddsterpatriot]

so the feds can tell states how large a state deduction can be?? what are the advantages/disadvantages for the feds??
thanks all replies

the advantage is a dictatorship for our government ... why let the people who live in the state vote and decide what is best for them and what it takes to run their state ... the government knows best, ask any RW'r.

why let the people who live in the state vote and decide what is best for them and what it takes to run their state

People in the states are free to vote for higher taxes....or lower taxes.
Trump's tax cuts haven't changed that one iota.

 

[william the wie]

CA, NY, IL, NJ, VA, MA, DE, and no doubt other states will join in this and other stupid stunts.

If liberals understood economics, they wouldn't be liberals.

In most Blue states taxes are being increased and public services decreased. The smart Yankees and Left coast wingnuts started running for the exits before the tax bill passed Traffic conditions have gone from bad to terrifying. The real estate market has gone bug nuts crazy too. Yankees and Calis go home!

 

[william the wie]

so the feds can tell states how large a state deduction can be?? what are the advantages/disadvantages for the feds??
thanks all replies

the advantage is a dictatorship for our government ... why let the people who live in the state vote and decide what is best for them and what it takes to run their state ... the government knows best, ask any RW'r.

don't the feds have enough to worry about?

Yeah but instead of bargaining for a two or three year phase in of the deduction caps and it is the 25% decrease in the mortgage deduction cap that is destroying the Blue wall the Ds shut down the government for DACA like their paymasters told them to.

 

[my2¢]

so the feds can tell states how large a state deduction can be?? what are the advantages/disadvantages for the feds??
thanks all replies

Feds are not telling anything to states. They're just telling taxpayers that the maximum deductible we can take for state taxes is $10,000. Somewhat similar to them saying to us that medical costs under x% of our adjusted income aren't deductible. I sort of get annoyed with the tax writers when they play these games. Just make it totally deductible or not deductible, one way or the other. But that isn't the way legislation works.

State taxes were not deductible under the original tax plan. But to get Republican lawmakers from high tax states aboard, the deduction was added back under this form as part of wheeling-and-dealing to get the tax reform passed.

 

[mikegriffith1]

There is no way this suit has a prayer of a chance. What an utter waste of time and money. The lawyers who are handling the suit should be suspended and sent back to law school. If the Maryland state government wants to reduce the tax burden on its wealthier citizens, then let the Maryland state government reduce the state's sky-high property taxes and sky-high income taxes.

The idea that the federal government does not have the right to control what deductions it grants for federal income taxes is comical. I mean, this is just silly.

 

[RWNJ]

There is no way this suit has a prayer of a chance. What an utter waste of time and money. The lawyers who are handling the suit should be suspended and sent back to law school. If the Maryland state government wants to reduce the tax burden on its wealthier citizens, then let the Maryland state government reduce the state's sky-high property taxes and sky-high income taxes.

They fail to understand, or simply don't care, that tax cuts have NEVER caused poverty. They have never caused a deficit either.

 

[BluesLegend]

Its time blue states start paying their fair share of Federal taxes. Using high state taxes to avoid paying Federal taxes is a scam.

 

[mikegriffith1]

so the feds can tell states how large a state deduction can be?? what are the advantages/disadvantages for the feds??
thanks all replies

This is not a state deduction. It is a federal deduction. It simply says that people can deduct up to $10K of their state and local taxes (SALT) from their federal tax obligation. The federal government isn't telling state governments anything. If states like Maryland don't like the new cap on the SALT deduction, then they should reduce their income taxes and property taxes so that no one but the very rich have to pay more than $10K in SALT.

Capping the SALT deduction at $10K was a brilliant move that puts pressure on high-tax states to stop taxing the hide off their citizens. Furthermore, why should people in low-tax states subsidize the state taxes of people in high-tax states? $10K is a very reasonable cap. Even in a high-tax state, you have to be in the top 10% of income earners to be affected by the new SALT cap.