Sore Losers Plan To Sue Over New Tax Law

Let’s see: a piece of legislation passed by the Constitutionally elected Legislative Branch, signed by the duly and Constitutionally elected President. The only thing in the Constitution about taxation is that the federal government can have one. And this is what a few #resist weenies want to do

(Washington Post) The governors of New York, New Jersey and Connecticut said Friday that they are forming a multistate coalition to sue the Trump administration over the 2017 tax bill, challenging the constitutionality of a provision that limits Americans ability to deduct their state and local taxes from their federal bill.

The law sets a new cap of $10,000 on the amount of state and local property and income taxes that can be deducted from federal taxable income. That will disproportionately harm their residents, the governors said in a conference call, and is motivated by politics rather than sound fiscal policy. Residents most affected by the provision live in states run by Democrats that tend to have higher state and local tax rates, they said.

“The new federal tax law destroyed a century-old tax structure between the federal government and the states,” New York Gov. Andrew M. Cuomo said on Twitter. “New York will sue.”

It doesn’t matter. There’s nothing in the Constitution that precludes the new tax structure. And arguing against it could, potentially, have the chance in a judge, or even the Supreme Court, ruling that all deductions of state and local property and income taxes are out of bounds, and there should be no deductions. That would be a bite in the nether-regions for high-tax states, would it not?

Megan McArdle notes this lawsuit idea, as a well as a few other bad ideas from Democrats to attempt to regain that tax money, and ends with

Given the problems with all of these strategies, it is a measure of state desperation that these are the ideas on the table — and that they are being seriously considered. In the end, these places may even be forced to consider the truly audacious Option 4: cut their taxes and learn to live within a new, tighter budget.

But, they won’t, at least not the majority of them. At the end of the day, elected Democrats want that spending money more than they want to take care of their citizens.

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24 Responses to “Sore Losers Plan To Sue Over New Tax Law”

  1. Dana says:

    There have been all sorts of caps on deductions in the Infernal Revenue Service code. A ruling that the government could not set a ‘cap’ on SALT deductibility would impact many other sections of tax law.

    Thing is, the initial proposal was to eliminate the state and local tax deduction completely; the capped deduction was a sop to the high-tax states. If the courts were to rule in favor of Governor Cuomo’s suit, the obvious answer would be to eliminate that deduction completely, which would cost their residents even more.

    Still, all of those liberals who have advocated raising taxes should be happy to pay more in taxes themselves, right? The states represented by those governors all voted for the odious Hillary Clinton, so ‘twould seem that the majority of their residents support higher taxes.

    Still, we’ve seen this fine site’s resident leftist tell us that no, he wouldn’t simply donate the $14,000 he said he would save under the new tax bill to the Treasury, even though he said he didn’t need the cut, unless I did so first, despite the fact that former Vice President Biden told us that paying higher taxes was ‘patriotic.’

    When it comes to the left, putting their money where their mouths are is definitely not how they live their lives.

    • Jeffery says:

      dana,

      I will donate my savings if all the Con Men also agree to donate theirs.

      Fair enough?

      • drowningpuppies says:

        Little guy, you should just do it because you care so much about the little people.

        Fair enough?

      • dachs_dude says:

        Being generous with other people’s money doesn’t make you a nice person.

      • Dana says:

        Jeffrey wrote:

        dana,

        I will donate my savings if all the Con Men also agree to donate theirs.

        Fair enough?

        We’re not the ones advocating higher taxes; you are. We are not hypocrites for deciding not to contribute more in taxes voluntarily; you are.

  2. Stosh says:

    Flat tax, or Fair tax here we come. Every cap on deductibility and exemption affects different states differently, by their illogical filling all should be struck down.

  3. david7134 says:

    It seems that the liberals are full into the concept that your money is theirs and they allow you a small amount for your needs.

    My ideal would be a flat tax, the percentage of exposure would be set by a constitutional amendmet. So people would know that the combination of all taxes, federal, state and local would not exceed let’s say 10% of your yearly income. The cold adjust the amount to maybe 5% more or less but never more than the 10% limit.

    If this is not enough to cover the cost of government, then Congress could adjust spending to balance the budget, like dropping the EPA or other useless group. And no jeff, if the government obligated to a trust like SS or Medicare they have to pay this even at the cost to losing to the representatives personally.

    This is a pipedream but it is the way out personal lives work.

    • Jeffery says:

      dave,

      What liberals believe regarding taxation is that currently the burdens fall too much on the working classes. The US middle class needs not just tax relief but especially an economy that works for them rather just the wealthy and corporations.

      Liberals believe that governments DO have a role in ensuring equality.

      A flat tax pushes the burdens further onto the working classes. A progressive tax relies on those more able to pay.

      Governments have expenses and taxes are used to pay these expenses. Most of our federal expenses are defense, Social Security, Medicare, Medicaid and interest on the debt. Liberals believe that the US spends too much on defense, and conservatives feel we spend too much on SS, Medicare and Medicaid (and most other expenses too). Politics is the art of resolving these competing interests.

      • david7134 says:

        Jeff,
        Wrong. The upper 10% pay almost all taxes. As to expenses, that is wrong.

        • Jeffery says:

          dave,

          So you think the working classes are doing OK? And you ignore the effects of regressive payroll taxes (SS and Medicare; 34% of fed revenues) and regressive state/local taxes.

          In 2015, federal revenue made up about 61 percent of the $5.7 trillion total, while states collected about 28 percent, and local governments brought in about 11 percent. 39% if all tax revenues are state and local. Do you really think the wealthy pay more of their income on sales taxes than workers living paycheck to paycheck? The working classes, not the wealthy, need tax relief.

          Get it now? We collect about $1.8 trillion in progressive fed income taxes and about $4 trillion in regressive payroll, state and local taxes. (We recently further cut the already small amount collected from corporations).

          The economic elites are pleased that most Americans don’t realize what they have done.

          As a liberal here’s what I would like. Increase (not slash) the top marginal rates on federal income taxes and rebate billions to the states to slash state and local taxes greatly reducing the regressive burdens on the working classes. We should institute universal healthcare similar to those systems in every other advanced nations on Earth (this alone would save us $1 trillion/year). We should strengthen, not bust labor unions. We should examine all policies that suppress the pay of the working classes.

          What was the top marginal rate during the 50s when America built the greatest middle class in human history?

          Yes, my own taxes would go up significantly, and the typical working class Con’s would go down. But I’m OK with that if it helps to strengthen America’s middle class. Nearly all rich libs would agree.

          Defense spending, Medicare and Medicaid, Social Security and interest comprise 80% of federal spending.

          • drowningpuppies says:

            tl;dnr

          • Dana says:

            Jeffrey wrote:

            Yes, my own taxes would go up significantly, and the typical working class Con’s would go down. But I’m OK with that if it helps to strengthen America’s middle class. Nearly all rich libs would agree.

            Yet Jeffrey, when challenged by me, to voluntarily remit the $14,000 he said he’d save due to the tax cut, said that no, he wouldn’t do so. Apparently he doesn’t want to do what he says is his part to help “strengthen America’s middle class.” We never have to worry about a liberal putting his money where his mouth is!

            But, just in case Jeffrey has changed his mine, here’s the link again to where he can make that donation to the Treasury. Just trying to be helpful and make things easy for him!

          • Dana says:

            Jeffrey suggested:

            As a liberal here’s what I would like. Increase (not slash) the top marginal rates on federal income taxes and rebate billions to the states to slash state and local taxes greatly reducing the regressive burdens on the working classes.

            Why do that? Why not lower federal taxes, and eliminate federal payments and grants to the states. Leave the states with more room to raise their taxes, and leave the states with the responsibility of funding the programs that they want.

            Having the federal government involved means more wasted money, in additional federal and state and local bureaucracies, shuffling paper back and forth to insure compliance with the strings the feds always put on federal money. Why do we need a bureaucrat in Washington DC monitoring a repaving project on a county road in Pennsylvania; why do we need a congressman from Montana passing judgement, and authorization, and appropriations, for a project in Arkansas?

          • david7134 says:

            Jeff,
            I have found that exchanging comments with you is a waste of time. You really are lacking in knowledge and reasoning ability. You really do need to increase your knowledge base. Your entire comment is wrong.

        • Jeffery says:

          dave,

          Why do you and conservatives hate the working classes so much?

  4. JohnAllen says:

    If the residents of the mentioned states would get rid of these idiot politicians that are wasting their taxes on this stupidity they might not have the problem of disallowed deductions from the new tax law.

  5. Jl says:

    “Regressive taxes of SS and Medicare….”. Except that many, if not most people will gain at least what they put in if not more if they live long enough through SS checks or hospitalization through Medicare. “Do you really think the wealthy pay more of their income on sales taxes than workers living paycheck to paycheck?” Depends what you mean. The wealthy pay more sales taxes, federal income taxes and state income taxes than those in the middle class. If you mean do those in the middle class pay a higher percentage of their income in sales taxes, then yes. Except they also pay a higher percentage of their income for a loaf of bread, a cup of coffee, or whatever.

    • Jeffery says:

      And all to the point refuting the argument that the wealthy pay almost all the taxes. The working classes pay plenty.

      In my plan, MY taxes will go up and most of yours will go down. Isn’t that what you want? Others to pay your “freight”?

  6. Jeffery says:

    Dana lied (again):

    Yet Jeffrey, when challenged by me, to voluntarily remit the $14,000 he said he’d save due to the tax cut, said that no, he wouldn’t do so.

    I said, I will if the Con Men will. Why should liberals be the sole support of the federal government, if our Con Men brethren refuse? Do us a favor and YOU pay for tRump’s fvckin’ Wall.

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