As tax season comes and goes, Americans of all stripes are getting a break. Thanks to President Trump’s historic tax cut bill, a vast majority of Americans are seeing their taxes go down.
By next year, filing taxes will be much easier. President Trump’s is lessening the tax burden on workers and employers. That will result in more jobs, better pay, and a booming economy.
But it’s not all roses for everyone. For a very long time, certain states took advantage of loopholes. It’s not a surprise that these are liberally-run states. They have skirted the law, avoiding paying federal tax. All so that money could be squandered on wasteful, state programs.
Oh, what kind of programs, you might ask? The kind of programs that shield illegal aliens, provide them with benefits and erode our national security.
But now, they will have to pay their fair due.
From Sacramento Bee:
President Donald Trump’s tax cuts will be anything but for about 1 million California taxpayers who will owe Uncle Sam more money a year from now.
They’re the Californians who will lose a collective $12 billion because the new law caps a deduction they have been able to take for paying their state and local taxes, according to a new analysis by the Franchise Tax Board.
Very wealthy Californians earning more than $1 million a year will pay the lion’s share of that money, with 43,000 of them paying a combined $9 billion.
It sounds harsh, but get this: the vast majority of Californians will see a tax cut. The federal law doubles standard deductions and increases the child tax credit. The only people who will get hit are the very rich—like all those con artists in Hollywood.
According to the facts, it looks like these people were able to get out of paying federal tax, thanks to higher state tax. California got away with bilking their residents with higher taxes, due to this loophole. California got more money by giving the federal government the shaft.
Like many other liberal states, the local taxes are way too high. It’s one of the reasons many Americans are fleeing California to states like Texas. Lower taxes are better for businesses and employees. But the super-rich of California didn’t care, because they were able to get out of paying their federal taxes. Not anymore.
Keep that in mind, before you start weeping for these people. If they don’t like it, they can easily move to a lower-taxed state. Or, you know, California can lower its outrageous taxes.
I won’t hold my breath on that one.
Source: Sacremento Bee