"High-tax states such as New York, California, and New Jersey are spending significant time and resources trying to concoct ways for their high-income residents to evade federal taxes.
This strategy is in direct response to the newly enacted Tax Cuts and Jobs Act, which caps state and local tax deductions from federal income taxes at $10,000 per taxpayer. But legislators in high-tax states who wish to prevent the wealthy from fleeing to lower-tax states should lower the cost of local and state government instead of ducking federal taxes.
The $10,000 cap in the state and local deduction is irrelevant for most taxpayers.
For starters, 70 percent of taxpayers don’t itemize their deductions when filing their federal income taxes. These taxpayers benefit instead from the standard deduction."
...
"It’s primarily high-income taxpayers in high-tax states who will be affected most by the change in federal tax law. And that’s why lawmakers in those states are trying to find ways around the law.
Instead of trying to pass the buck of their big-government costs to federal taxpayers in lower-tax states, policymakers in high-tax states should just reduce their own state taxes.
As U.S. Rep. John J. Faso, R-N.Y., aptly said: “The solution is to lower the cost of government in New York and make our state a place where businesses can create jobs so our people don’t have to flee.”
http://dailysignal.com/2018/01/24/high-tax-states-should-lower-their-taxes-instead-of-trying-to-evade-federal-taxes/
This strategy is in direct response to the newly enacted Tax Cuts and Jobs Act, which caps state and local tax deductions from federal income taxes at $10,000 per taxpayer. But legislators in high-tax states who wish to prevent the wealthy from fleeing to lower-tax states should lower the cost of local and state government instead of ducking federal taxes.
The $10,000 cap in the state and local deduction is irrelevant for most taxpayers.
For starters, 70 percent of taxpayers don’t itemize their deductions when filing their federal income taxes. These taxpayers benefit instead from the standard deduction."
...
"It’s primarily high-income taxpayers in high-tax states who will be affected most by the change in federal tax law. And that’s why lawmakers in those states are trying to find ways around the law.
Instead of trying to pass the buck of their big-government costs to federal taxpayers in lower-tax states, policymakers in high-tax states should just reduce their own state taxes.
As U.S. Rep. John J. Faso, R-N.Y., aptly said: “The solution is to lower the cost of government in New York and make our state a place where businesses can create jobs so our people don’t have to flee.”
http://dailysignal.com/2018/01/24/high-tax-states-should-lower-their-taxes-instead-of-trying-to-evade-federal-taxes/