Sigh Sigh Sigh!!

Published:

Hopefully loot-o-theft-o-rape-o-care will get repealed and replaced soon but the current topic is taxes.

If the media reports are to be believed then there is some argument over state and local tax deductions with the fed income taxes.

The state and local tax deduction is a very Gruberesque swindle.

Either the people working on it are in on the scam or they really can't see what is going on!

The federal deductions for state and local taxes are, in fact, taxation without representation.

How you ask?

Here is a faithful representation of what is really going on and how the deduction is really a WMD (Weapon of Marxist Destruction).

It does leave out the details which get everyone bogged down so people like Gruber can swindle you but this is what is going on....

Just as an example lets say that the federal government needs to raise 1 trillion in income tax revenue per fiscal year.

To make it easy lets also assume a flat tax rate with deductions for state and local taxes.

If there were 10 trillion in income the rate would need to be 10%

But wait! Don't forget the state and local deductions.

Say California and New York, two high tax states, each account for 500 billion in income for a total of 1 Trillion dollars of income which would mean they would each have 50 billion overall tax bills for a total of 100 billion dollars.

Now suppose that they each exercise their state and local deductions so, as an example, it cuts their taxable income to 400 billion dollars each which would mean they each have to kick in 40 billion for a total of 80 billion in income tax.

Federal tax revenues are now 980 billion and are 20 billion dollars short!

So now the feds need to raise everybodys tax rate to get the 1 trillion dollars!!!

This siphons off income from people in the other 48 states and forces people in the other 48 states to pay taxes in jurisdictions that they have never heard of, will never go to and will never have representation in!!!

Once the people realize this they will be cutting the heads off of swindlers and dumping their blood in Boston Harbor in the Boston Gruberesque-swindling-fat-pig party.

Taxation without representation in America???  H3LL NO!!!!!!!!!!!!!!!!

Entry #36

Comments

Avatar eddessaknight -
#1
Bravo, Think, honest math!

Arithmeticis being able to count up to 20, without taking your shoe off !
~Mickey Mouse, Disney

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