{"id":324002,"date":"2019-10-02T15:30:00","date_gmt":"2019-10-02T19:30:00","guid":{"rendered":"https:\/\/admin.rushlimbaugh.com\/?p=324002"},"modified":"2019-10-03T16:29:15","modified_gmt":"2019-10-03T20:29:15","slug":"the-obvious-solution-to-the-blue-state-salt-problem","status":"publish","type":"post","link":"https:\/\/admin.rushlimbaugh.com\/daily\/2019\/10\/02\/the-obvious-solution-to-the-blue-state-salt-problem\/","title":{"rendered":"The Obvious Solution to the Blue State SALT Problem"},"content":{"rendered":"

RUSH: There\u2019s a story here that ran on the Fox Business Network: \u201cWill SALT Cap Ruling Accelerate High-Tax State Exodus?<\/a>\u201d<\/p>\n

This is a weird headline. What this story is about, a Manhattan judge — and we did this in our Morning Update today.<\/a> \u201cA Manhattan judge dealt a blow to multiple high-tax states this week, including New York, which could drive even more taxpayers to,\u201d leave to low or no-income-tax states.<\/p>\n

\u201cFour blue states sought to challenge the $10,000 cap on state and local tax deductions \u2013” See, in these blue states, massively high state and local taxes were not that big a factor because the wealthy could deduct them on their federal tax returns. So high-tax states were allowed to go ahead and tax out the wazoo because the big donors were able to deduct all of those taxes on their federal return.<\/p>\n

Trump\u2019s tax reform bill capped the deductibility amount at $10,000, which for the people that we\u2019re talking about here is walking-around money, chump change, tip money, if you will. So they went into court, they wanted to get this overturned, they wanted to try to say that the Feds cannot have anything to say about state and local taxes. And in a shocking move, a federal judge told them to go pound sand!<\/p>\n

\"\"<\/p>\n

And I read this story, there\u2019s something fascinating in this. It\u2019s really fascinating. Other than a quote from a former CEO whose name nobody would know, there\u2019s no mention of the solution to this problem. If you\u2019re the state of New York and you were able to raise state taxes all you wanted because people paying them would be able to deduct that amount on their federal return and all of a sudden they can\u2019t deduct, well, now what those state and local taxes are matters. People are actually gonna have to pay them now instead of being able to deduct them.<\/p>\n

So there\u2019s an obvious solution to this. If people\u2019s reaction to this is to leave New York and to leave Connecticut, to leave California or some of these other high-tax states, then what\u2019s the solution? Well, the solution would be keeping them there. You need the taxpayers. You need the tax base. You don\u2019t want them leaving. And throughout this whole story, nobody comes up with the obvious solution. Which is what?<\/p>\n

Lowering state and local taxes. It\u2019s real simple! You cut your own taxes! If people are fleeing your state because of high taxes, you cut them! But they don\u2019t even consider it. It doesn\u2019t even cross their minds in Albany. It doesn\u2019t cross their minds in Connecticut. It doesn\u2019t cross their minds in Sacramento. \u201cWhat do you mean, cut taxes? Why would we do that?\u201d<\/p>\n

Well, because now people can\u2019t deduct them and so they\u2019re going to no-income-tax states. \u201cWell, no, no. We\u2019re gonna find a way that they can\u2019t move.\u201d Oh. You\u2019re gonna find a way to restrict their freedom?<\/p>\n

\"\"<\/p>\n

\u201cDamn right we are. We\u2019re not gonna let \u2019em leave.\u201d Well, why don\u2019t you just cut taxes?<\/p>\n

\u201cWhat does that even mean, cut taxes?\u201d Well, lower them so that people have to pay less.<\/p>\n

\u201cOh, no, we can\u2019t do that.\u201d Why not?<\/p>\n

\u201cWell, we need the revenue.\u201d You\u2019re not getting the revenue because it\u2019s leaving the state!<\/p>\n

\u201cIt doesn\u2019t matter. We still can\u2019t cut taxes.\u201d Well, then okay. How about cutting the budget?<\/p>\n

\u201cWhat do you mean, cutting the budget?\u201d Spending less.<\/p>\n

\u201cOh-ho-ho no, we can\u2019t do that.\u201d What do you mean you can\u2019t do that?<\/p>\n

\u201cHow does that even work? How do you spend less?\u201d<\/p>\n

So they\u2019re in this vicious cycle. And the obvious solution is staring them right in the face: Cut taxes if you don\u2019t want people to leave. It never even occurs to them. (interruption) Screw the safety. What safety net? What safety net are we talking about here? You mean for the downtrodden, the poor, the thirsty?<\/p>\n

They can\u2019t cut taxes because it\u2019s less graft money to play with. It\u2019s nothing about the safety net for the downtrodden. Cutting taxes they think is reducing revenue and if there\u2019s less revenue to play with, there\u2019s less revenue to steal, there\u2019s less revenue to misdirect! There\u2019s less revenue to put in your consultancy group that\u2019s between you and a government contractor.<\/p>\n","protected":false},"excerpt":{"rendered":"

RUSH: If people's reaction to this is to leave New York and to leave Connecticut, to leave California or some of these other high-tax states, then what's the solution? <\/p>\n","protected":false},"author":49,"featured_media":306331,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","ngg_post_thumbnail":0},"categories":[12,1],"tags":[],"yoast_head":"\nThe Obvious Solution to the Blue State SALT Problem - The Rush Limbaugh Show<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/live-rush-limbaugh.pantheonsite.io\/daily\/2019\/10\/02\/the-obvious-solution-to-the-blue-state-salt-problem\/\" \/>\n<meta name=\"twitter:card\" content=\"summary\" \/>\n<meta name=\"twitter:title\" content=\"The Obvious Solution to the Blue State SALT Problem - The Rush Limbaugh Show\" \/>\n<meta name=\"twitter:description\" content=\"RUSH: If people's reaction to this is to leave New York and to leave Connecticut, to leave California or some of these other high-tax states, then what's the solution?\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/www.rushlimbaugh.com\/wp-content\/uploads\/2019\/04\/APP-041619-Trump-Taxes.jpg\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"George Prayias\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebSite\",\"@id\":\"https:\/\/admin.rushlimbaugh.com\/#website\",\"url\":\"https:\/\/admin.rushlimbaugh.com\/\",\"name\":\"The Rush Limbaugh Show\",\"description\":\"Excellence In Broadcasting\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/admin.rushlimbaugh.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/live-rush-limbaugh.pantheonsite.io\/daily\/2019\/10\/02\/the-obvious-solution-to-the-blue-state-salt-problem\/#primaryimage\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/www.rushlimbaugh.com\/wp-content\/uploads\/2019\/04\/APP-041619-Trump-Taxes.jpg\",\"contentUrl\":\"https:\/\/www.rushlimbaugh.com\/wp-content\/uploads\/2019\/04\/APP-041619-Trump-Taxes.jpg\",\"width\":640,\"height\":360},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/live-rush-limbaugh.pantheonsite.io\/daily\/2019\/10\/02\/the-obvious-solution-to-the-blue-state-salt-problem\/#webpage\",\"url\":\"https:\/\/live-rush-limbaugh.pantheonsite.io\/daily\/2019\/10\/02\/the-obvious-solution-to-the-blue-state-salt-problem\/\",\"name\":\"The Obvious Solution to the Blue State SALT Problem - 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