California, under the guise of helping out the little guy, is contorting its state tax law to, instead, hugely reward the richest of the rich, while essentially leaving everyone else behind.
What a bunch of frauds.
How does it work? Read the following excerpts from Hank Adler’s eye-opening article at townhall.com and see for yourself:
If you were worried that the wealthiest California taxpayers were paying too much in Federal taxes, the Democratic dominated California State Senate apparently has been equally concerned and has proposed a “tax” law change that would allow California taxpayers to deduct 85% of their California state taxes as “contributions” in their federal income tax returns.
In short form, the proposal is for California taxpayers to pay an amount equal to their California taxes to a non-profit “charity” that will in turn donate the money to the state. Of course, the California Senate has found a couple of tax professors to bless the plan and apparently the California Senate believes that neither Congress nor the Internal Revenue Service will so much as acknowledge any disagreement with this plan.
There is a claim being made that this legislation will save “middle income taxpayers” money. This would be the case only rarely because the increase in the federal standard deduction from $12,600 to $24,000 is so significant.
But the ultra-wealthy win big.
In 2015, 8051 California taxpayers filed tax returns with individual adjusted gross income of over $5 million. These folks combined to have taxable income of $132 billion. and paid just short of $17 billion of state and local taxes. The California Senate wants to award these folks a deduction of over $14 billion against their federal income taxes.
Please, please use the link I’ve provided and read Mr. Adler’s entire piece to fully understand how this “pretend you’re helping everyday folks but pour money into the pockets of California’s richest residents” routine is being perpetrated. It will stand the hair on the back of your neck straight up.
And does Mr. Adler know what he’s talking about? I would think so, since he spent 20 years as a top partner at Deloitte & Touche.
We are watching California collapse into a cesspool of poverty, homelessness and non-educational education, accelerated by millions and millions of people who don’t even have a legal right to be in the country. But this is what the Democrat-dominated state government thinks is worth doing?
Well, it’s their state. They own it; lock, stock and Disneyland. I hope they enjoy the result.
I read an article last week that said the government in California is running out of space for all the money they have from tax collections. I will look for it and post a link.
That was easier to find than I thought.
http://www.sacbee.com/news/politics-government/capitol-alert/article197715684.html