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Democrats

California Dems want to give millionaires and billionaires a tax cut

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In a recent article published by the Orange County Register, they reported that:

California Democrats are toying with a brash scheme to skirt a new federal cap on state and local tax deductions: Instead of paying taxes to the Golden State, Californians would be allowed to donate the money to the state’s coffers — and deduct the entire sum from their federal taxes.

California lawmakers are considering a tax credit of 100 percent for the proposal — essentially allowing people to replace their tax payments with donations to a state fund.

The average state and local tax deduction for California filers — including income and property taxes — was $22,000, according to the state Department of Finance. The new federal law caps that deduction at $10,000, less than half of that amount.

Even though Democrats like Senate leader Kevin de León, also a candidate for U.S. Senate against fellow Democrat Dianne Feinstein, wants to portray himself as a champion of the people and the tip of the spear of the California anti-Trump resistance movement. In reality, his true intentions are to give a massive tax loophole for millionaires and billionaires.

Here is the truth. For most middle-class families they will not see their taxes go up. With increases in the child tax credit and the standardized deduction, many will benefit from the GOP tax plan; even in California.

Protecting the 1%

So who are the Dems and Kevin de León trying to protect? It’s the millionaire and billionaire class.

Do you think everyday middle-class families have their CPA or tax consultant continually running numbers and doing their accounting to make sure they donate the proper amount on or before December 31st?

Of course, they are not. You can’t go to your tax professional at your local H&R Block on April 15th and “supposedly donate” for the prior year. It doesn’t work that way. This plan is to protect as Bernie Sanders likes to say, the 1%.

The average family, Kevin de León is saying he wants to protect is a lie. They can’t afford the supposed tax hike, but can all of a sudden afford to pre-pay tens of thousands of dollars before the year-end to avoid paying higher federal taxes.

This is political grandstanding at its finest by Kevin de León. He wants to deceive voters into a narrative that he is a champion of the people and the leader of #Resist. Unfortunately for him, we know he is the same champion of the people that raised taxes on poor and working-class families in California with his gas and car registration tax hike.

So sorry Kevin, whatever you’re selling, we ain’t buying.

The Truth

Here’s the truth. California is highly dependent upon high-wage earners. Especially those millionaires and billionaires who invest in the stock market and have to pay hefty capital gains taxes. It might seem that these millionaires and billionaires would prefer to go to a state like Texas.  Since they are so successful and business savvy, why pay higher taxes in California?

Well, the truth is, they are going to have to pay high taxes anywhere they go. They can go to a place like Texas and pay less to the state and more to the federal government or live in the Golden State and pay that money to the state instead of the federal government. You’re paying that money in taxes anyway, do you really care which government agency it goes to?

Even though it might be cheaper with the cost of living and purchasing power between a state like Texas and California, to live in Texas over California, but for many, it is worth it to live in one of the most desirable places in the world and pay a bit more.

Remember these people are not living paycheck-to-paycheck, unlike many struggling families in California. They can afford it.

I understand this as a California resident that happens to live in a more affluent area. I pay a premium to live where I live, but it is worth it to me. I don’t want to move or live in another state or for the most part another region of the state. I love where I live.

But the thing is I’m not a 1%er, and it isn’t for lack of trying; it’s just reality. I’m single with no dependents, and I am in the upper-middle class, so I have a higher amount of disposable income that makes it possible to live in California. I don’t have to deal with the realities of struggling working-class families.

The Reality

So even though the GOP tax plan will benefit the majority of California families., the reality is for the 1% the GOP tax plan will hurt those high-wage earners living in a high-taxed state like California. The extra tax liability to these taxpayers could be in the millions.

You see, the 1% might be okay with spending tens of thousands of dollars more to live in California but what do you think will happen when their CPA comes back and says, Mr. & Mrs. 1% you owe an extra $10 million in taxes this year because you live in California.

You might get, let’s buy a house in Florida or Texas and live there for six months and one day and then the rest of the time in California and save $10 million a year. Or let’s just leave California altogether.

You see California Democrats don’t like the new tax policy because now they will have to compete with other states. You see California Democrats like Kevin de León knew they could kick the can down the road with their terrible policies and get away with high taxes, reckless spending, taxpayer handouts to their corporate and union contributors under the old tax code.

Now that the gig is up, you see Democrats trying to give these millionaires and billionaires a massive tax cut loophole in the hopes of keeping them in California.

California Democrats need to realize that this scheme will not work and with a tax deduction over a tax credit on the federal side, which will be the feds countermeasure, or not recognizing it as a charitable deduction, it will still be economically advantageous for millionaires and billionaires to move. Just like it has been for the tens of thousands of working-class families that have left the state because of reckless economic policies.

If we don’t seriously address the high tax and reckless spending policies of the state, we will see a steady if not a rapid decline in California’s general fund and thus result in even higher state taxes and deeper cuts in services. Along with accelerating our looming pension crisis.

We have serious problems in California and we need serious people to fix these problems, instead of political grandstanders.

If California, wants to be competitive it needs to embrace fiscal responsibility. No other scheme or ploy will do.


Konstantinos Roditis is a candidate for California State Controller. You can learn more about his campaign at cacontroller.com, and you can follow him on Twitter & Facebook as well.

Mr. Roditis a candidate for California State Controller. He is an entrepreneur and owns several companies. He graduated from UCSD with a B.A. in Political Science/International Relations. He's a former City Commissioner with the City of Anaheim, CA. He's a Conservative Constitutional Federalist. Follow him on Twitter @KonRoditis

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Democrats

New Jersey’s new governor sees California as progressive model

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New Jerseys new governor sees California as progressive model

The next great progressive Democratic hope in 2020 is Phil Murphy.

You’ll know him real soon. Tuesday, he gets sworn in as Governor of New Jersey.

But Murphy has the personal wealth (he’s a former Goldman Sachs executive), the street cred (as President Obama’s Ambassador to Germany) and the fertile ground (Hillary Clinton beat Donald Trump by 13 points) to use the Garden State as a launching pad for his sense of progressive nirvana.

That nirvana? California! Murphy wants to make New Jersey into the next California.

That’s right. The state with the highest poverty rate in the nation, according to the Census Bureau. (How does your state compare? Go to page 27 of this fascinating Census report.)

So when Murphy says he sees California as a “model” to emulate, New Jersey residents in the know say “Uh-oh.”

And if they’re really smart they’ll say “U-Haul.”

California’s generous safety-net programs appear to have made poverty worse, according to local, mainstream-media coverage of the lowlights there including:

  • 55% of immigrant families (but only 30% of “native” families) receive some sort of means-tested benefits;
  • A sanctuary state;
  • restrictive land-use (anti-development) policies driving up the cost of housing; and
  • a welfare bureaucracy employing nearly one million people, many of whom might lose their jobs if their “customers” were to graduate off the dependency trap.

Murphy says he will “pursue creative reactions” and possibly challenge in court policies like the Republican tax bill recently signed by President Trump. But he also claims the “only thing we’ve promised is a stronger and fairer economy in this state,”  and quickly adds “that includes for organized labor.”

Whoa! Wait, what’s that? Did I hear a “fairer economy”? (This is when the unnecessary adjective warning goes off, heralding the addition of an adjective acting as an antonym for the word it’s modifying.)

But if the solution is the California-model of social services, there appears to be no end to the downward spiral of higher taxes, more poverty . . . and the public-sector Gravy Train grows and grows, gets longer and longer.

For Murphy, that may not be a bug, but a feature. That’s because there’s a tipping point, where there are simply enough Gravy Train passengers and beneficiaries (recipients and government employees, sometimes they’re both) that if they all get out and vote, the tax-and-spend-more progressives will win, no matter what.

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Democrats

Rich Lowry on Dick Durbin’s desire to make a DACA deal work

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Rich Lowry on Dick Durbins desire to make a DACA deal work

Based upon Senator Dick Durbin’s actions the last few days regarding President Trump’s “s***hole” comments, one would think his intention was to derail talks and have a valid reason to blame Republicans in general and Trump in particular. If he really wanted a DACA deal, wouldn’t he have handled it differently?

JD Rucker had some thoughts on this:

Trump was wrong to say what he said. Durbin was wrong to reveal it.

http://noqreport.com/2018/01/12/trump-wrong-say-said-durbin-wrong-reveal/Durbin crossed that line. He took comments that paint the entire country through the President himself in a way that harms our ability to work with other nations. He wasn’t championing the nations Trump spoke out about. He had a single intention: harm.

Will this help with negotiations? Possibly, but at what cost?

National Review’s Rich Lowry wasn’t quite as accusatory, but he did question Durbin’s motives and whether or not he really wanted to make a DACA deal happen. Perhaps he was just greatly offended. Then again, perhaps he was just being a politician. Here’s Lowry’s quote:

“Everyone seems to think that Durbin really wants a deal, which makes it weird that he has gone out of his way to blow up the s***hole meeting.”

Read all of his comments:

Trump’s “Shithole” Comments, DACA & Political Fallout

http://www.nationalreview.com/corner/455430/trump-shithole-comments-daca-political-falloutOne benefit of a merit-based system is that it would move us away from special ethnic pleading in immigration policy. The visa lottery began as affirmative action for Irish immigrants. My understanding is that Dick Durbin said in the meeting that he wanted to preserve the visa lottery in a slightly changed form because the Congressional Black Caucus wanted it. This is not how we should be making decisions about who comes here and who doesn’t.

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Democrats

Emoji loving Manning running for Senate

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After getting off early in the eleventh hour of Obama’s presidency, Manning became an “activist” taking on and getting roasted by many conservatives on Twitter, most memorably, Ben Shapiro. Now he’s filed for a Senate run for Ben Cardin’s seat in Maryland. This would be Manning stepping up to the big leagues of politics for sure.

It’s somewhat similar to Austin Petersen in Missouri, in that we have someone who has built up a social media following prior to launching a high profile campaign. This strategy definitely worked for Trump, among other things, but we await how social media darlings perform in campaigns.

However, this is also possible battle in the Democrat civil war between the Old Party and the Socialists. In The Most Important Races of 2018: Part 1, one of the elections mentioned was the Illinois District 3 race because one of the most moderate pro-life Democrats was being challenged by the pro-abortion and far more leftist Marrie Newman.

This was the first instance of a very formidable leftist challenging a Democrat for not being socialist enough. Manning, whatever his first name is these days, is on the side of Socialist for in the potential intra-party civil war. He is on the Colin Kaepernick, Linda Sarsour, and perhaps Bernie Sanders level.

This looks like it could be battle number two but Ben Cardin is a rock solid product of the Maryland Democrat machine. So in a way, this seems like two liberal going at it but key differences in policies are likely to be found in the area of foreign policy and dealing with Trump.

Being transgender isn’t enough to win a seat in liberal Maryland. The seriousness of Manning will largely depend on his finances.  Maryland seats are so easy to win by Democrats because of how blue the state is and the heavy gerrymandering for the House districts. So when a new seat opens up in Maryland, Democrats invest loads of money to fight for the easy to retain seat.

Thus David Trone spent 10 million losing a House primary in 2016 while Chris Van Hollen spent enormous amounts of money to win his Senate Primary (he was trying to upgrade from the House to the Senate because Barbara Mikulski was retiring). Both of these high dollar primaries were for open seats, so if Manning wants to primary Ben Cardin, he will need a lot of money.

Maryland is Democrat because of its proximity to the Federal government. There are tons of government workers and contractors in Maryland, and several companies where workers need security clearances. Odds are the convicted intel thief isn’t going to get off so easy with voters just because he put lipstick on. It will also be interesting to see Manning’s ability to win the black vote because Bernie Sanders failed to beat Hillary in this category despite being BLM and beyond.

Lastly, it Manning’s likability among independents will also make or break him. Maryland has closed primaries so they won’t be able to stop him if Democrats abandon long-time Senator Cardin.

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Final Thoughts

Republican nominees have their rallying cry. Cardin could be deposed or simply step aside to let the young man take his place and retire at 75. If Manning becomes the nominee, the race just became watchable. In the past, Republican efforts to take the seat have been pitiful, to say the least, but Manning is likely an amateur at campaigning and a polarizing figure, to put it mildly. He lacks experience and has a criminal record. So GOP might have a chance to steal this seat for six years. One thing is for certain: this Senate race just got interesting.

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