How Will California Reimburse Its Rich Citizens For The SALT Deduction?
California’s politicians have just cost their people over $100 million in lost tax deductions. Suddenly, the state’s 13.2% top rate is no longer amusing.
How will the state make it up to them?
If it can’t the state will see an exodus of biblical proportions. With no Red Sea to intervene.
The damage will be massive. Six million California households deduct an average of $65 on their federal forms. How will the Democrats induce them to stay in the Bay State after they lose about $37,000 a year in SALT (state and local tax) deductions? — only partly offset by a doubling of the standard deductions.
And with the four communities with the highest average home values in California, these richer homes will suffer from caps in mortgage interest deductions.
Will they stay or leave?
If they leave, it will set off a seismic shift that will changer country in fundamental ways.
The New Okies, dissidents of many who fled the Dust Bowl in the 30s, will show up in tax havens like Texas and Florida as new, driven, wealthy voters in their new states determined to stop the leftward drift from ruining their new homes too.
If they leave, what will that do to California? Will it be a new Detroit or Illinois drifting ever leftward and downward? Imploding at warp speed.
Or will California cut its income taxes and its spending? It obviously has to, but can its near-sighted liberals realize the need to do so?
One gets the feeling that we are watching the presidentially assisted suicide of a liberal state.
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