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* When the Illinois Policy Institute believes double taxation is bad…
All Illinois drivers also pay sales taxes on top of their gas taxes, which is essentially double taxation.
* When the Illinois Policy Institute believes double taxation is good…
NYT ed board comes out swinging against @GovPritzker, Cuomo and others on the SALT deduction. "A tax cut with such a skewed distribution of benefits ought to be unacceptable to any politician genuinely concerned about the rise of economic inequality."
https://t.co/QC8b1ObT2D— Austin Berg (@A_R_BERG) April 25, 2021
posted by Rich Miller
Monday, Apr 26, 21 @ 10:37 am
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The Illinois Policy Institute is not a serious institution or watchdog, nor are they bipartisan.
The phony that they peddle is predicated on goldfish-like memories of the angry that the IPI want lapping up like a kitten to cream.
What’s fun is when they’re dishonesty is seemingly so partisan they need to reiterate “as a non-partisan” so the silly can seem thoughtful. It’s thoughtfully dishonest, but that’s the trick.
Comment by Oswego Willy Monday, Apr 26, 21 @ 10:41 am
The IPI is a notoriously Incoherent Policy Institute.
– MrJM
Comment by @misterjayem Monday, Apr 26, 21 @ 10:46 am
The IPI continues to beat that dead horse. States may pass no laws reducing the obligation of contracts. What’s so hard about understanding that?
Comment by The Dude Abides Monday, Apr 26, 21 @ 10:52 am
Some people want to use the SALT deduction (or lack thereof) to argue for ratcheting down local taxes, starving local governments and clubbing unions like baby seals. That’s the goal, not thoughtful tax policies.
Comment by Socially DIstant Watcher Monday, Apr 26, 21 @ 10:56 am
Whatever might work against Pritzker this week, logic be damned.
Comment by walker Monday, Apr 26, 21 @ 10:58 am
It’s easy to make fun of IPI but their stance on the SALT deduction is hypocritical double taxation? Seriously this is the best you can do Rich? Must be a slow news day. If anything it’s hypocritical of Dems like JB to write letters advocating for an unlimited deduction after spending $50 million on saying he wanted to tax the 3%. Very disingenuous
Comment by 1st Ward Monday, Apr 26, 21 @ 11:00 am
Well just sit back and wait for there next inconsistency. It will come soon. Popcorn?
Comment by Lt Guv Monday, Apr 26, 21 @ 11:02 am
===Seriously this is the best you can do Rich? ===
Is it not double taxation?
Comment by Rich Miller Monday, Apr 26, 21 @ 11:02 am
It’s also making the tax code more progressive.
Kind of hard to say you want a progressive tax code, and then complain when it’s progressive.
It is in fact possible that even the IPI can be right on occasion
Comment by Fav Human Monday, Apr 26, 21 @ 11:08 am
Who knew John D’Arco was sending in replies from the great beyond under the moniker of “1st Ward.” Hmmmmmm. . .
Comment by Lt Guv Monday, Apr 26, 21 @ 11:09 am
No no no, it’s only double taxation when the state taxes you twice, when the feds and the state each tax you once that doesn’t count as “double taxation” because the money’s going to different places./s
I’m being snarky, but there are probably those who would take this stance sincerely.
Comment by Perrid Monday, Apr 26, 21 @ 11:18 am
“Is it not double taxation?”
Simply put no.
Comment by 1st Ward Monday, Apr 26, 21 @ 11:20 am
===Simply put no. ===
Then you’re not very bright.
Comment by Rich Miller Monday, Apr 26, 21 @ 11:21 am
Perrid,
The SALT deduction applies for the first $10k of state income and local property taxes. That would seem to cover the vast majority of tax payers.
Without any caps on SALT, the uber-wealthy never feel the pain of increasing property or state income taxes. They simply get to write it off of their federal income taxes.
Comment by CPA Monday, Apr 26, 21 @ 11:23 am
Other examples of double taxation:
1. I pay taxes on my wages, and then a sales tax when I spend those wages.
2. I pay property taxes on the incremental increase in the value of my home. And then I pay taxes on the increased value of my home when I sell it.
3. I pay taxes on the purchase price of my new car, and taxes on that same vehicle when I sell it.
Comment by CPA Monday, Apr 26, 21 @ 11:28 am
The IPI are obviously hypocrites on double taxation. That said, the NYT op-ed they’re commenting on isn’t wrong. In Illinois, only 12% of those with average incomes of $97,500 will see benefits from SALT repeal, and on average, they’ll save only $690. In contrast, 98% of those making $2.1 million (i.e., the richest 1% in the state) will save, and their average benefit will be just over $37,000. It’s fine to dunk on IPI because they’re the worst, but at the end of the day this is a sop to the rich.
Source for stats: https://itep.org/salt-cap-repeal-has-no-place-in-covid-19-legislation-national-and-state-by-state-data/
Comment by Quibbler Monday, Apr 26, 21 @ 11:34 am
For those who argue that this isn’t double taxation, the federal income tax from pretty much the beginning was designed not to double-tax Americans.
Comment by Rich Miller Monday, Apr 26, 21 @ 12:24 pm
The IPI cares about income inequality like a snake cares about its prey. This “concern” is only for political points.
The SALT deduction cap was meant to punish blue states, like ours. The The GOP wants to “starve” blue states within their means. Quite ironic, coming from net “taker” states and explosion of debt and deficits in the last four years.
Comment by Grandson of Man Monday, Apr 26, 21 @ 12:42 pm
It depends on what you mean by double taxation. Typically, double taxation means that the same taxing entity imposes two taxes on the same economic activity or income. When two separate taxing entities impose taxes on the same activity, that’s not quite the same thing. I think it could go either way. Personally, I think the SALT deduction is better characterized as a federal tax expenditure in the same way that the home mortgage deduction is. But it’s a close question and depends on what you think double taxation is. Its inclusion in the tax code from the code’s inception is not dispositive one way or the other.
Comment by Senator Blutarsky Monday, Apr 26, 21 @ 12:45 pm
===that’s not quite the same thing===
It is to the people who pay it. Move along.
Comment by Rich Miller Monday, Apr 26, 21 @ 1:00 pm
Yesterday’s NYTimes editorial showed a remarkable lack of memory on the part of the editorial board.
Did the editorial board forget about the numerous OPEDs published in 2017 that bemoaned the new cap? Did it forget about origins of the cap? The implementation of a SALT Deduction cap was rooted in purely political concerns. Trump wanted to punish blue states and this was an area where he could do damage. He did it with tax policy. He did it was covid relief efforts. The cap is a product of a vindictive president that the country is lucky to have moved on from. If only the NYTimes editorial board could remember that.
Comment by Red Fish Blue Fish Monday, Apr 26, 21 @ 1:52 pm
To those opposing “double taxation” as unfair. Going back at least to John Locke, there has been the search for the “magic” tax that is not unfair, that does not introduce “economic inefficiency” into the economy. One has been identified, and been blessed by Adam Smith as “not hurting economic activity.”
This “magic” tax? The Land Value Tax. Those of you opposed to “double” (i.e., “unfair”) taxation, please run for state or local office on a platform of abolishing all taxes except the Land Value Tax. Please report back on the success of your campaigns, with particular emphasis on how you responded to your opponents equating the “Land Value Tax” with the “Property Tax.” Thank you in advance.
Comment by Anyone Remember Monday, Apr 26, 21 @ 2:08 pm
[This comment was deleted for using a foreign IP address.]
Comment by CPA Monday, Apr 26, 21 @ 2:28 pm
The thing about SALT is that Trump targeted blue states for punishment with the only tax increase in his corporate tax cut bill.
It may be easy to accuse the Dems on the “tax cut for the wealthy” but SALT hurts every homeowner in northeast IL, not just the wealthy ones. It maybe fun to take shots at JB, but he never pushed a tax policy that targeted only red counties.
The SALT cap repeal would undo a partisan flawed tax increase pushed by Trump.
Comment by Siriusly Monday, Apr 26, 21 @ 11:31 pm