How does one start a petition drive for a CA state “tax reform” in lieu of SALT caps?

[scaredyclassic]

[quote=flu]Looks like some politicians have caught on…. We’ll see if it sticks next year.

http://beta.latimes.com/politics/essential/la-pol-ca-essential-politics-updates-california-senate-democrats-are-1513992780-htmlstory.html

De León, who also is running for U.S. Senate, said the state Senate is working with law professors at UCLA, UC Davis and the University of Chicago to develop the legislation.

Ideas being considered, according to a de León spokesman, include:

Reducing state personal income taxes through a tax credit program and offsetting that amount through payroll taxes.
Allowing individuals to make voluntary gifts to the state of California, which would be deductible as a charitable donation under federal law. The deduction for the donated amount would replace the state and local tax deduction.[/quote]

funny stuff.

didnt trump say he knows best how to use tax system to his,advantage

[scaredyclassic]

Too Good to Be True? How State Charitable Tax Credits Could Increase Federal Funding for California
in California Policy Options (2013)

UCLA School of Law, Law-Econ Research Paper No. 13-16

31 Pages
Posted: 18 Sep 2013

Phillip C. Blackman
Independent

Kirk J. Stark
University of California, Los Angeles (UCLA) – School of Law

Date Written: September 17, 2013

Abstract
An IRS chief counsel memorandum published in 2010 found that a taxpayer was permitted to claim a charitable contribution deduction for the full amount of a gift, even thought a substantial portion of the gift was effectively refunded to the taxpayer through a charitable state tax credit. In this article, Blackman and Stark explain that the IRS memorandum permits states to adopt charitable tax credits that effectively enable taxpayers to convert state taxes to charitable gifts — a strategy that would be attractive to alternative minimum taxpayers. Those state charitable tax credits (some with extraordinarily high credit percentages) appear to be on the rise, perhaps in part because they effectively enable a transfer of revenue from the federal government to the states. The authors believe the memorandum should be repudiated (as a matter of appropriate federal tax policy), but if it is not, states should consider taking advantage of it. The article discusses how the strategy applies in the case of proposed California legislation that would permit a 60 percent tax credit for contributions to a state fund designed to increase financial support for low- and middle-income students to pursue secondary education.

[scaredyclassic]

Too Good to Be True? How State Charitable Tax Credits Could Increase Federal Funding for California
in California Policy Options (2013)

UCLA School of Law, Law-Econ Research Paper No. 13-16

31 Pages
Posted: 18 Sep 2013

Phillip C. Blackman
Independent

Kirk J. Stark
University of California, Los Angeles (UCLA) – School of Law

Date Written: September 17, 2013

Abstract
An IRS chief counsel memorandum published in 2010 found that a taxpayer was permitted to claim a charitable contribution deduction for the full amount of a gift, even thought a substantial portion of the gift was effectively refunded to the taxpayer through a charitable state tax credit. In this article, Blackman and Stark explain that the IRS memorandum permits states to adopt charitable tax credits that effectively enable taxpayers to convert state taxes to charitable gifts — a strategy that would be attractive to alternative minimum taxpayers. Those state charitable tax credits (some with extraordinarily high credit percentages) appear to be on the rise, perhaps in part because they effectively enable a transfer of revenue from the federal government to the states. The authors believe the memorandum should be repudiated (as a matter of appropriate federal tax policy), but if it is not, states should consider taking advantage of it. The article discusses how the strategy applies in the case of proposed California legislation that would permit a 60 percent tax credit for contributions to a state fund designed to increase financial support for low- and middle-income students to pursue secondary education.

[Coronita]

There is already a 50% tax credit from Cal Grant.

http://www.treasurer.ca.gov/cefa/catc/index.asp

Mainly useful for people subject to heavy AMT.

The sweetener would be if there were donations that produced 80-95 cents on the dollar.tax credit.

[scaredyclassic]

so how does that work?

i give $100 to cal grant.

i get a 50 state tax credit so im out of pocket 50.

then i get to deduct 100 on fed taxes?

say thats worth 35 to me. so for 100 i get 85 in tax breaks. im out 15$.

or i could kerp the 100 pay the full tax burden and keep about 55. im out 45?

is that it?

[ocrenter]

[quote=scaredyclassic]so how does that work?

i give $100 to cal grant.

i get a 50 state tax credit so im out of pocket 50.

then i get to deduct 100 on fed taxes?

say thats worth 35 to me. so for 100 i get 85 in tax breaks. im out 15$.

or i could kerp the 100 pay the full tax burden and keep about 55. im out 45?

is that it?[/quote]

Best scenario is state sets up a charity for you to donate in lieu of state income tax. And you simply get to write off 100% of that donation for the fed government.

Maybe state treasurer Chiang can set this up.

[gzz]

To answer the OP, I do have experience with ballot measure petition drives, I worked for a company that did them purely on the local level for three years in college.

At the low end, it will cost about $1.5 million to get something on the California state ballot unless you have a huge source of volunteer labor that is willing to be trained in proper signature gathering.

The first steps are to come up with language that the state Legislative Office will recommend, and then poll it to see if you can try to qualify it immediately versus waiting for an election that will have voters more favorable to you. Off year v presidential year, primary election v general.

[plm]

https://www.cnbc.com/2017/12/28/this-one-weird-trick-lets-blue-states-avoid-trumps-tax-hike.html

Cnbc had an article to get around the SALT double taxation by changing state taxes to be paid by employers instead and reducing employee pay to make the net the same.

[Coronita]

Boom!

http://www.chicagotribune.com/business/ct-california-trump-tax-law-20180104-story.html

California Senate leader on Thursday introduced legislation aimed at circumventing a central plank in the new Republican tax law, introducing a model that – if successful – could be replicated all over the country.

California Senate President Pro Tempore Kevin de León, D, introduced a bill that would allow taxpayers to make a charitable donation to the California Excellence Fund instead of paying certain state taxes. They could then deduct that contribution from their federal taxable income.

[scaredyclassic]

[quote=flu]Boom!

http://www.chicagotribune.com/business/ct-california-trump-tax-law-20180104-story.html

California Senate leader on Thursday introduced legislation aimed at circumventing a central plank in the new Republican tax law, introducing a model that – if successful – could be replicated all over the country.

California Senate President Pro Tempore Kevin de León, D, introduced a bill that would allow taxpayers to make a charitable donation to the California Excellence Fund instead of paying certain state taxes. They could then deduct that contribution from their federal taxable income.[/quote]

So cool

[Coronita]

NJ is now part of this fight too. Lol..

https://www.bloomberg.com/news/articles/2018-01-05/new-jersey-s-murphy-joins-tax-fight-as-cohn-hints-at-pushback

[Author]

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