What’s the least defensible special break in the U.S. tax code? With so many distortions to choose from, it’s hard to name just one. If forced to pick, I might say the deduction for state and local taxes, which cost $67 billion in fiscal 2011, according to the congressional Joint Committee on Taxation. This one overwhelmingly benefits upper-income households in a handful of upper-income states, while rendering the entire nation’s finances less transparent. It’s also a potential source of friction in the “fiscal cliff” negotiations between President Obama and the Republicans (but we’ll get to that in a moment).
Comments: Living in NH with no sales or earned income taxes, I would like to see this. Of course, it will never pass because only blue states benefit with these tax deductions.
I couldn´t agree more. That said, NY, CT, CA, etc. will fight mightily against repealing this deduction. But, if repealed, it ewoud be a safety valve against excessive taxation.
Take a look at the Potomac river. The west end of the Wilson Bridge is dominated by commerce thriving in a lower tax environment. The east end is mostly a lower income dormitory for federal workers in a confiscatory tax environment.
I would like for the unearned tax credit refund to be abolished. It is not right for people who do not pay taxes or very little taxes, to get a refund above the taxes taken out. I worked with a woman whose lazy no good son, who did not like to work, would get a tax refund that he did not earn. She laughed and thought it was funny that he got back more than he earned. She was and I am sure remains a raging liberal.
I am a New Yorker and for the past several years have had the good fortune to be able to complain about being in AMT territory. Being in Westchester County that means I have astronomical property taxes for which I get no deduction. I expect nobody to feel sorry for me because I life in a high-tax jurisdiction, and this is offset by things like being able more easily to max out my 401 because it´s a percentage of my New York-inflated income.
I am fine with eliminating the state income tax deduction because it will affect me negatively but it will overwhelmingly affect blue states and far fewer red states and will force blue staters to think for 10-15 seconds about whether it makes sense to be taxed so heavily, and maybe even push for budgetary restraint.
I would start here if I had to agree to higher taxes. And if the additional tax would go solely to paying down debt I would be okay with the tax - I´m not okay with it because I know that will never be the case.
But there´s no reason not to increase the taxon the states that essentially voted for high taxes, even though I voted differently.
Liberals always look at things from the taxations side, not the spending side. This lame brained idea is nothing but double taxation in the very high tax states particularly; another great way to cut down on jobs.
Lane, the writer, should stick to his field of reporting on what economists say not coming up with his own lame brained ideas. Left wing economists have enough of their own he can write about; Krugman 91% tax on the rich.
Guys, all this talk about doing away with the deduction in order to force budget tightening -- that´s not the way the world works anymore. The Leviathan is feeding itself, and simply does not care about what works.
I am also a TN resident and an accountant. If you itemize deductions, you can detect local sales taxes. This ability was added to the IRS code as a way to equalize state tax deductibility between states that have no income tax. I would like to see the EITC welfare program removed as part of the tax code. It allows what is really a welfare program to be hidden within the tax code and it is wildly abused.
While I agee that it would be unfair double taxation, I cannot help but note that the states with the highest income tax (that now gets deducted from federal taxes) are the Dim-controlled states--NY, CA, MA, IL.
Although it would be unfair to conservatives living in those states, it would be poetic justice to raise the taxes of the leftwing knuckleheads in those states.
My favorite tax deduction to chop out is union dues. Union dues should not be deductible from individual income tax, nor should unions be tax exempt.
As someone who lives in a high tax state (MA)this would hurt me a lot. An autoamtic 3% increase in my already astronomical federal tax bill. All so the feds can waste more money on social programs. No thanks. No tax hikes til we see spending cuts.
To those carping about living in non taxed states you´re still making out. I could use the exact same argument against mortgage deductions. Why should someone who rents pay for the break his landlord gets? Or the person who has no mortgage subsidize the guy who only put 5% down?
I actually cannot think of any tax deduction that could not be opposed using this argument. Maybe we should just eliminate all deductions and pay a flat rate?
Payroll taxes are also another tax on the same $1 of income as the state income tax and federal income tax. When you count all the layers of taxes on the same $1 of income, many people are paying more than 40%.
The Obama administration’s unquenchable ambition to replace Americans’ own choices with those made by bureaucrats in Washington has taken yet another stupid turn, it appears. Either that, or the federal school lunch policy is so confusing that city officials cannot figure out how to serve milk. (Snip) The rules actually state that children “must” take fruits, vegetables and whole grains if districts are to be reimbursed by Washington for the meals.
Students must take a meal at school even if they only want a carton of milk, according to federal regulations presented at the Board of School Committee meeting Monday. Mayor Ted Gatsas and other school board members reacted with dismay to the rules, which they say have contributed to waste when students, some of whom bring lunches from home and only want milk, toss the school-provided fare in the trash. “We’re not able to offer the free milk-only option,” Superintendent Debra Livingston told the board. “In order to have the free meal, the students are required to choose the required
A Massachusetts man has been indicted for voting in Manchester during the 2012 Presidential election. Late Friday afternoon Attorney General Joseph A. Foster announced in a release that Lorin C. Schneider, Jr., of Carver, Massachusetts had been indicted by a Hillsborough County grand jury for wrongful voting in violation of RSA 659:34, I (e). State officials claim that during the November 6, 2012 Presidential Election, Schneider voted at a Ward 9 polling place in Manchester, where he was a registered voter. The attorney general´s office says at the time Schneider had lived in Carver, Mass., for over 20 years.
I moved from Maryland to New Hampshire in 2010. Why? I walked into my corner grocery store in Maryland and all the lights were off. Reason: the small-business owner couldn’t afford the new countywide carbon tax. That was the last straw for me. (Snip) Concord Police Chief John Duval recently begged Washington, D.C., for more than $250,000 to buy a military-style “armored personnel carrier” — the Lenco BearCat G3. Chief Duval claims he needs this military personnel carrier because of groups like the “Free Staters.”
Here is how New Hampshire’s so-called “health insurance exchange” under Obamacare will work when it comes online Jan. 1. Granite Staters who need health insurance and have not found it through an employer or the actual marketplace will come to this government-created “market,” where a grand total of one insurer will offer plans. Every one of the plans offered by the single participating insurance company will have to provide government-mandated minimum coverage that starts at $498.79 a month. This is “choice” under Obamacare.
NASHUA - Among the protesters rallying outside of Nashua City Hall on Saturday was Chez Perez, who stood out with his large Scar battle rifle draped around his neck. (Snip) Perez was one of about 100 people gathered at City Hall Plaza participating in two opposing rallies. The Organizing For Action group hosted a gun violence prevention rally, while the New Hampshire Tea Party Coalition spearheaded a simultaneous counter-rally supporting gun rights.
The decision by gun manufacturer Sturm, Ruger to build new facilities in North Carolina and not New Hampshire has resurrected the old debate over whether right-to-work laws harm a state’s economy and quality of life. As the top labor leaders of two states with very different experiences with right-to-work, we maintain that right-to-work is not a viable strategy for economic growth. In North Carolina, which has had a right-to-work for less law since 1947, it has encouraged the development of a low-wage economy and institutionalized poverty and an environment that puts corporate profits
I have never been much of a conspiracy theorist. For me it was always Oswald by himself from the Texas School Book Depository and nothing in the intervening fifty years has disabused me of this notion. For the most part, I’m an Occam’s Razor kind of guy — the most obvious explanation is likely to be true. (Snip) To put it bluntly, Occam’s Razor has moved. Things that were once possibilities now seem almost certainties to me. Principal among those is that Obama’s academic records are perpetually unavailable for a reason — and that reason is most likely that they reveal
One of President Obama´s chief political assets has been his ability to excite young people like almost no politician in history. But the days of America´s youth fawning over the president are over. A new Harvard University Institute of Politics poll released Wednesday confirms what other surveys have shown in recent months: Millennials have soured on Obama so much this year that their opinion of him largely mirrors the American public´s. Even though Obama does not ever have to face another election, he should be worried about the findings for a couple of reasons, which we will dive into momentarily.
President Obama will cast growing income inequality and a decline in economic mobility as a “fundamental threat to the American dream” during a speech Wednesday in Washington. The speech will serve as an early preview for next year’s State of the Union address, according to a White House official, who said Obama would focus much of his energy over the next three years on the issue. “The decisions we make over the next few years will determine whether or not our children will grow up in an America where, if you work hard, you can get ahead,” the official said.
Good stuff from Jonathan Turley at today’s House hearing on executive power, although I regret that I couldn’t find a more user-friendly format for you to watch. There’s no compilation clip; you’ll have to make do with the C-SPAN embed by fast-forwarding to the time cues I give you and being patient while the vid buffers (and buffers, and buffers).(Snip)That brings us to point two: Even if Congress can’t stop Obama, the courts can. The problem there, though, says Turley, is that O and the DOJ have argued successfully in many cases that no one has standing to sue him
A stunning new study unveiled on Fox News´ Hannity finds that President Barack Obama’s White House calendar records just one face-to-face meeting between Obama and his Health and Human Services (HHS) Secretary Kathleen Sebelius in the more than three-and-a-half years leading up to the disastrous Obamacare launch. The startling statistic comes from a new Government Accountability Institute (GAI) analysis of Obama’s own official White House calendar, as well as the Politico presidential calendar, and raises new questions about Obama’s executive leadership and management throughout the implementation of his singular legislative achievement. More alarming still, the president’s schedule lists 277 private
[Video] President Obama on Wednesday declared that addressing income inequality would be the focus of “all” of the White House’s efforts “for the rest of my presidency.” In a sweeping address that touched on raising the minimum wage, investing in infrastructure and ending tax breaks for the wealthy, Obama warned that the American economy has become “profoundly unequal,” declaring economic mobility the “challenge of our time.” “The combined trends of increasing inequality and decreasing mobility pose a fundamental threat to the American dream, our way of life, and what we stand for around the globe,” he said in an hour-long
Just over two weeks ago, MSNBC host Martin Bashir delivered a harsh piece of commentary that culminated in the suggestion that someone should “s-h-i-t” in former Alaska Governor Sarah Palin‘s (R-AK) mouth. Bashir offered an abject apology on his next broadcast, but a chorus of critics continued to demand action against the host. After a reported “vacation” for the host earlier this week, Bashir announced, Wednesday afternoon, that MSNBC and Martin Bashir are parting ways. Here’s the statement from Martin Bashir, via email: After making an on-air apology, I asked for permission to take some additional time out around the Thanksgiving holiday. Upon