Can you take advantage of the s-corp pass-through?
As far as what the state should do….Not saying it would work but….
1. CA/NY/WA/NJ can F with the other states…Create a commmerce commonwealth….
For example, a company such as Google HQ’d in CA can recall all the jobs back to California/Seattle/NY and leave red states, driving unemployment higher in those red states.
2. CA/NY/WA,etc state governments can levy transaction “fees” on on internet based transactions to all residence in these “commonwealth” states. Of course, if you’re a company that employees people within the commonwealth states you can apply to the commonwealth for “fee rebate” to get your money back. That way, it puts the tax burden on companies that choose to do commerce with consumers in CA/NY/WA, etc….
It’s similar how GST tax in Canada works for non-residence, except in reverse…. purpose of this tax/fee is to increase the cost of businesses that try to sell things residence in commonwealth states, driving their operating costs much higher and give incentive for businesses in CA and encourage businesses to have a presence in CA.
You see CA is looking at solving all these problems wrong… Taxing CA residence more is going to drive more wealthy people out of state. What CA should be looking at is figuring out a way to tax businesses out of state more…and either drive companies out of state out of business or give businesses out of state incentive to setup shop in CA and move jobs in.
Basically run a protectionist economic strategy at the state level similar to what Trump wants at the federal level versus foreign companies/countries, except the protectionism and tariffs would be directed at out of state businesses.
Given that we have people with higher income (for now), our consumers probably spend more…So out of state businesses may end up suffering more than CA businesses, even if other states not part of the commonwealth retaliate.
But let’ see exactly how loyal some of these “liberal leaning” companies really are interested in protecting some of these blue state interests…I have yet to see CA based companies or seattle based company recall jobs back to home states…..
Yes, I know. This idea sounds totally insane…But hey, we live in pretty insane times, so it probably just as crazy as seeing Trump in office. Write to your leading democrat state representative and propose this to them…Some of them might actually take this seriously…Lol….Taxing our way to prosperity…NOT!
