Restoring the SALT Deductions

[nsacpi]

Kudos for AOC for pointing out how regressive such a step would be.

https://www.msn.com/en-us/news/polit...?ocid=msedgntp

[Jaw]

How absurd that restoration of SALT limits and expansion of social programs were mentioned as priorities, but roads, bridges, broadband, power grid, ports, shipyards, and Flint never were. The Democratic party at it's best, wrapping crap in butcher paper and calling it steak.

[sturg33]

Tax breaks for the rich.

[chop2chip]

Tax breaks for the rich.

Definitely favors blue states, but something needed for middle class Californians.

[nsacpi]

Definitely favors blue states, but something needed for middle class Californians.

You can always move to Texas.

[sturg33]

Definitely favors blue states, but something needed for middle class Californians.

Why should not crazy states have to subsidize high tax crazy states?

[chop2chip]

You can always move to Texas.

A Californian moving to Texas… might as well paint a bulls eye on my back for the locals.

[chop2chip]

Why should not crazy states have to subsidize high tax crazy states?

Stop buying products designed from our state :)

[Jaw]

Middle class Californians will be able to sell their house for 3x the value it would have in almost any other state. Many of them will retire by doing just that, then moving to a less screwed up state, buying at depressed prices, and telling the locals how they used to do things in the place they fled. SALT caps were basically a way for those other states to finance the bloated, real estate driven, California/Acela economy. The solution for those middle class Californians is to fix their state government.

[nsacpi]

Middle class Californians will be able to sell their house for 3x the value it would have in almost any other state. Many of them will retire by doing just that, then moving to a less screwed up state, buying at depressed prices, and telling the locals how they used to do things in the place they fled. SALT caps were basically a way for those other states to finance the bloated, real estate driven, California/Acela economy. The solution for those middle class Californians is to fix their state government.

I'm just shocked by the pot of gold my mother's little house has turned into. And she doesn't even live in one of the fashionable coastal towns or cities.

[Jaw]

I'm just shocked by the pot of gold my mother's little house has turned into. And she doesn't even live in one of the fashionable coastal towns or cities.

A friend's parents bought their Santa Cruz home for $8,000 in 1968. They just sold for 1.2 million. And moved to Arizona. Fortunately for Arizona, they're deeply religious and abhor leftist social policy.

[nsacpi]

Btw, I want to note that I'm strongly in favor of the redistribution that takes place from rich blue states to the rest of the country. Which is why I oppose restoring the SALT deductions. Restoring them would also violate one of the maxims of good public finance policy: broaden the base and minimize the rates.

[chop2chip]

Middle class Californians will be able to sell their house for 3x the value it would have in almost any other state. Many of them will retire by doing just that, then moving to a less screwed up state, buying at depressed prices, and telling the locals how they used to do things in the place they fled. SALT caps were basically a way for those other states to finance the bloated, real estate driven, California/Acela economy. The solution for those middle class Californians is to fix their state government.

Do you realize if you don’t own a home in California it costs 3x as much as it would in any other state? BTW, the cost of living is inflated because of out of state younger folks who come here to work our high paying jobs. (This isn’t a problem, but let’s stop acting like blue state folk are a gang of pillaging pirates).

I get the concern with SALT deductions. I am not arguing it’s merits only that the people most hurt by it’s repeal are the middle class.

[nsacpi]

Do you realize if you don’t own a home in California it costs 3x as much as it would in any other state? BTW, the cost of living is inflated because of out of state younger folks who come here to work our high paying jobs. (This isn’t a problem, but let’s stop acting like blue state folk are a gang of pillaging pirates).

I get the concern with SALT deductions. I am not arguing it’s merits only that the people most hurt by it’s repeal are the middle class.

Seriously though, the solution is to do something about the supply of affordable housing. But that would piss off people who are already sitting on all that valuable real estate.

I have a friend (an MD) who moved from Indiana to San Francisco about ten years ago. He was shocked at the cost of housing. Had to adjust his expectations down in a hurry.

[Jaw]

Do you realize if you don’t own a home in California it costs 3x as much as it would in any other state? BTW, the cost of living is inflated because of out of state younger folks who come here to work our high paying jobs. (This isn’t a problem, but let’s stop acting like blue state folk are a gang of pillaging pirates).

I get the concern with SALT deductions. I am not arguing it’s merits only that the people most hurt by it’s repeal are the middle class.

I do. The same friend I mentioned above moved to Georgia a few years ago for that reason.

Your state government sucks. You have a painful combination of Hollywood and Silicone Valley providing absurd incomes to people with little connection to reality. Great weather. Beautiful geography. A culture that pretends to be eco conscious while many live in mansions with swimming pools in the middle of a desert and fret about suburban sprawl.

There isn't an easy answer. Maybe continue to jack up taxes on 7 figure incomes while getting some of the loonies out of state government. The problem with that is that so much of your population has become loonie in it's own right. Have you thought of moving to Arizona?

[nsacpi]

You have a painful combination of Hollywood and Silicone Valley providing absurd incomes to people with little connection to reality.

Just about any state or country would kill to have that painful combination. But you also have a point. States/countries that are "blessed" with either amazing natural resources or world-leading industries will often neglect good policy because they can get away with it. The rest of the world will always be coming to visit and to buy their products. There is a whole economics literature (google Dutch Disease) about this. This literature has been elaborated mostly in conjunction with economies blessed with natural resources (oil being the big one), but it applies to other golden geese (Wall Street, Silicon Valley, Hollywood).

[chop2chip]

There is something sort of ridiculous that someone in the middle class in California is required to pay a higher federal tax rate than a middle class person in Wyoming.

[chop2chip]

Seriously though, the solution is to do something about the supply of affordable housing. But that would piss off people who are already sitting on all that valuable real estate.

I have a friend (an MD) who moved from Indiana to San Francisco about ten years ago. He was shocked at the cost of housing. Had to adjust his expectations down in a hurry.

Absolutely. I’m not sure what the solution would be but you have clearly identified the problem statement. It’s a problem across every single Californian metro area. It would solve a lot of problems.

[chop2chip]

I do. The same friend I mentioned above moved to Georgia a few years ago for that reason.

Your state government sucks. You have a painful combination of Hollywood and Silicone Valley providing absurd incomes to people with little connection to reality. Great weather. Beautiful geography. A culture that pretends to be eco conscious while many live in mansions with swimming pools in the middle of a desert and fret about suburban sprawl.

There isn't an easy answer. Maybe continue to jack up taxes on 7 figure incomes while getting some of the loonies out of state government. The problem with that is that so much of your population has become loonie in it's own right. Have you thought of moving to Arizona?

This is such a detailed observation and confident conclusion about a state that’s painfully obvious you don’t know anything about.

[Jaw]

This is such a detailed observation and confident conclusion about a state that’s painfully obvious you don’t know anything about.

It was intended to be sympathetic to people like you who are suffering from a combination of factors that are mostly beyond your control.

What part of my observation was wrong?