Red States Versus Blue States In The New Tax Deal (Blue Seems To Win)

The new tax deal raises rates for couples earning more than $450,000 but... it also begins the phase-out of various deductions at $250,000.

One might think that deductions are more valuable (and hence, the phase-out would hit harder) in the Blue States with high state, local taxes and property. But, as the NY Times explains, its complicated since at that income level the Alternative Minimum Tax can come into play as well.

The net effect, per the example they found an expert willing to climb a limb - for couples grossing just under the new $450,000 threshold the new deal apparently hits harder in Texas than in New York. Go, Obama and Boo, Boehner.

We thank, and the Times cites, Mark Luscombe, principal analyst with CCH, a tax information provider [link]. From the Times story comes this explanation of the chart above:

Much will depend on your own situation. CCH ran two hypothetical cases for me, which you can see in the accompanying graphic. The first examined a family of four in New York with $400,000 in adjusted gross income and $79,000 in total itemized deductions. The household pays the A.M.T. in both 2012 and under the new tax rules in 2013. They pay just $790 more in 2013, but that includes $1,350 in new Medicare taxes. (The total does not include the Social Security payroll tax that has been restored to its prerecession level.)

A family in Texas, however, might have the same income but lower property taxes and no income tax and thus lower deductions for its federal tax return. Their deductions are just $43,700, but they end up being hurt more by the new rules. They would have no A.M.T. liability in 2013 and would end up paying $3,852 more, or about $2,500 if you don’t count the $1,350 from the new Medicare tax.

Wow - setting aside the new ObamaCare tax, the New York family pays less under this new "soak the rich" reform.

Comments

[RichatUF]

NK-

Of course Libby wilfully and deliberately lied to the FBI.

IIRC, he was on deep background when he was talking to Miller. She was also talking to other insiders about Iraq (and probably talked to Mr. or Mrs Plame at some point). She wrote a book about WMD and was the go to journalist if someone wanted to get something about nonproliferation into to press.

Mel-

Your welcome.

[NK]

Jury ruled otherwise.... that's a fact .. look it up in the CrimCaseDocket

[NK]

and if I recall correctly, Cheney's autobio doesn't deny that Libby lied....

[boris]

Libby spoke with Miller some weeks after learning Wilson's connection to the CIA was his wife, and had no way of knowing her affiliation was considered classified.

Weeks later, after Joe's op-ed accused Cheney of sending him to Africa, it was learned by many (including Libby) that she was most likely who sent him to Africa on a mission to discredit "crazy reports" cited by Cheney of WMD materials. At that point she became "famous".

Months later Libby told the GJ reviewing his notes he had learned the first part, did not remember discussing her until she became famous. Many found it implausible that Libby could have forgotten such a "famous" spy woman.

[NK]

correct.. and the jury concluded beyond a reasonable doubt that his statements to the FBI and GJ were deliberately false. Libby failed to establish reasonable doubt... because... he in fact lied. Lying was foolish and egotistical, but he did.

[narciso]

The jury that included one of Woodward's desk editors and a diarist for 'Fire Hydrant Lake'
you want to trust your liberty to that.

[boris]

"Libby failed to establish reasonable doubt... "

I'd say the miscarriage was result of false narrative presented as fact that has been completely discredited. The truth was covered up but somehow the jury got it right? Bull.

[centralcal]

Ding Dong the witch is (NOT) dead ....

[RichatUF]

YIKES!!!! She should get some fashion tips from Michelle.

[NK]

And RosaD was allowed to breed...

..and Cheney doesn't deny Libby lied and Bush only commuted his sentence, he didn't pardon Libby.

[narciso]

We're way past 'goggles do nothin'.

[boris]

"Cheney doesn't deny ..."

Wow ... compelling (not). Don't know if Cheney and Bush can read minds, doubt it though. Know for a fact that Fitz played fast and loose.

[NK]

The facts show Libby lied, and the facts NOW show Fitz acted at best fast and loose, and more likely in a tyranical abuse of power to keep the truth from the public, the 'truth' that the media demanded the public see. The fact that Fitz abused power by ordering Armitage to shut up so he could keep the fact that Libby had nothing to do with the disclosure to Novak --otherwise Fitz's prosecution of Libby would look completely ridiculous-- doesn't change the fact Libby lied to cover up his talking to Miller.

[narciso]

There was no other way to explain why they had sent Joe Wilson, without referring to Plame's status, which was the subject of the INR memo, by that fellow who was sent to Islamabad as Consul General as a promotion,

[Jane - Mock the Media!]

NK, My memory of what happened is a lot closer to Boris than to yours. CLarice will probably remember completely.

[Jane - Mock the Media!]

Is this that woman's first term CC?

[Janet]

Hey Centralcal...thanks so much for sending the flowers!
God bless our Sue!!!

[Clarice]

I'm not the least bit confused about the Libby case. I am with Boris and DoT. Armitage and to a lesser extent Powell breached the trust Bush had placed in them and proved themselves craven cowards when pushed by a self-promoting corrupt prosecutor.

[narciso]

"I believed Scooter Libby was innocent and should never have been indicted, much less convicted. It's not surprising that two busy people disagree about a particular account of what happened' pg 409-410 "My Life," by Dick Cheney

[boris]

IMO the only jury that counts has rendered the only "real" verdict.

[Treeofmamre.wordpress.com]

But wasn't this the point of the election? Blue state voters trying to force red state voters to pay for their nonsense?

[cathyf]

A Fitzworld Glossary:

If you lie, that's perjury.

If you refuse to answer, that's contempt of court.

If you tell the truth, that's obstruction of justice.

[Have Blue]

Jane - No it is not. Rosa has been the rep for the Connecticut district including New Haven (and Yale) for many many years.

She hasn't gotten any wiser or saner in office either.