a way to fuck the federal govt?

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Submitted by scaredyclassic on December 5, 2017 - 5:27pm

clearly the tax bill is designed to fuck over people from CA with big mortgages and incomes. i have state taxes withheld, i never see the money but im now gonna be taxed on it federally.

the problem is, i technically get the money, then am taxed on the money. thats dumb. why do i need to touch that money. if it didnt actually get to me, i wouldnt have to pay tax on it.

what if there were a way to restructure work so that that state tax portion were recharacterized as not income to me, so im not taxed federally on the money i pay to the state ...

call it a fee for working in CA, from the employer, comes right off the top of my pay, its not income since i never get it to then pay to CA.

im not sure how this could work but is there some way for the state to lower our taxable incomes and still get their cut?

is CA just gonna sit there with ny and get screwed by the rest of the country. there has to be some workaround to fight back...

no phaseout...no nothing...is this longstanding deduction possibly property for purposes of a government taking of property without compensation?

i doubt that.

but theres probably a way to reduce our incomes and just get the money direct from work to the state. are there people in sacramento thinking about this?

Submitted by flu on December 5, 2017 - 7:21pm.

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!

Submitted by livinincali on December 6, 2017 - 11:11am.

flu wrote:

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!

The commerce clause in the constitution probably makes this idea illegal. You'd need the federal government to not step in an try to regulate interstate commerce. You'd also need the supreme court to find you not in violation of the commerce clause when the commonwealth of states trying this inevitably gets sued.

Obviously the large tech companies could be good stewards and do what you describe but Apple makes iPhones in China and Google sets up corporations in Ireland for a reason. It's not to be a good steward. It's to save money and increase profits.

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