Madmallard
.223 Rem
Savor the irony: Progressive politicians like Mayor de Blasio and Gov. Cuomo are freaking out over a key way President Trump’s tax reform would soak the 1 percent.
Trump wants to end the federal deduction for state and local taxes — while doubling the standard deduction and ending the Alternative Minimum Tax, so that the middle class doesn’t get slammed.
The loophole is a huge boon for high earners in high-tax states like New York and New Jersey. Nationwide, the Tax Foundation estimates, 88 percent of the benefits go to taxpayers with over $100,000 in income.
And the Empire Center’s E.J. McMahon calculates that the overall Trump plan would still leave New York families earning under $500,000 better off. (The AMT, in particular, is a bane on the upper-middle class, though it’s supposed to only hit “the rich.”)
The pain only gets serious for those pulling in more than $2 million a year — the folks Cuomo just hit by extending New York’s “millionaires’ tax,” and the ones de Blasio is always eager to see pay “their fair share.”
Of course, these politicians’ real fear is that, should the wealthy feel the full impact of New York taxes, they’d be more likely to move away.
As the Manhattan Institute’s Steve Malanga notes, New Jersey lost an estimated $200 million a year in tax payments when a hedge-fund manager fled to Florida (a no-income-tax state) last year.
No one really knows how many fat cats would flee if Trump gets his way. After all, they’re willing to pay a hefty (if smaller) premium to live here now.
http://nypost.com/2017/04/29/why-progressives-want-to-protect-fat-cats-against-trump/
Trump wants to end the federal deduction for state and local taxes — while doubling the standard deduction and ending the Alternative Minimum Tax, so that the middle class doesn’t get slammed.
The loophole is a huge boon for high earners in high-tax states like New York and New Jersey. Nationwide, the Tax Foundation estimates, 88 percent of the benefits go to taxpayers with over $100,000 in income.
And the Empire Center’s E.J. McMahon calculates that the overall Trump plan would still leave New York families earning under $500,000 better off. (The AMT, in particular, is a bane on the upper-middle class, though it’s supposed to only hit “the rich.”)
The pain only gets serious for those pulling in more than $2 million a year — the folks Cuomo just hit by extending New York’s “millionaires’ tax,” and the ones de Blasio is always eager to see pay “their fair share.”
Of course, these politicians’ real fear is that, should the wealthy feel the full impact of New York taxes, they’d be more likely to move away.
As the Manhattan Institute’s Steve Malanga notes, New Jersey lost an estimated $200 million a year in tax payments when a hedge-fund manager fled to Florida (a no-income-tax state) last year.
No one really knows how many fat cats would flee if Trump gets his way. After all, they’re willing to pay a hefty (if smaller) premium to live here now.
http://nypost.com/2017/04/29/why-progressives-want-to-protect-fat-cats-against-trump/
