In This Season Of Giving- We Blue States Give To The Red....

[djAdvocate]

wallethub.com/edu/states-most-least-dependent-on-the-federal-government/2700/#methodology

The extent to which the average American’s tax burden would vary based on his state of residence represents a significant point of differentiation between state economies. But it’s only once piece of the puzzle.

What if, for example, a particular state can afford not to tax its residents at high rates because it’s receiving disproportionately more funding from the federal government than states with apparently oppressive tax codes? That would change the narrative significantly, revealing federal dependence where bold, efficient stewardship was once thought to preside.



Happy Holidays to all of you Red States from us Blue States.

don't worry about the "thank you" card.  we know you won't send it.

[Shooby]

Give till it hurts!!

[djAdvocate]

it is interesting how a subtle shift in the narrative changes the argument, isn't it?

[Deleted]

Democrat President & Republican states still getting more money? That mean that whining work to get money?

[djAdvocate]

um......


porcupines?

[Shooby]

It ain't me. I have worked for every dime I have so yeah.

[dondub]

I didn't realize you were a red state.

[Deleted]

I don't know where they got their idea of Tennessee being a state that doesn't tax it's residents... We may not have an Income tax, but we do have a HIGH AS CRAP sales tax (9.75%, here)... on every frakkin thing.

[Tennesseer]

Dec 27, 2014 20:33:14 GMT -5 @richardintn said:

I don't know where they got their idea of Tennessee being a state that doesn't tax it's residents... We may not have an Income tax, but we do have a HIGH AS CRAP sales tax (9.75%, here)... on every frakkin thing.

As we do not have a state income tax, a portion of what we pay in sales tax can be deducted on our federal tax returns. I itemize what I pay in sales tax every year..

[busymom]

Apparently, my state is one of those that is giving until it hurts.

But, on the positive side, if the South ever DOES secede from the US, we'll be sitting pretty...

[Deleted]

Dec 27, 2014 20:45:16 GMT -5 Tennesseer said:

Dec 27, 2014 20:33:14 GMT -5 @richardintn said:

I don't know where they got their idea of Tennessee being a state that doesn't tax it's residents... We may not have an Income tax, but we do have a HIGH AS CRAP sales tax (9.75%, here)... on every frakkin thing.

As we do not have a state income tax, a portion of what we pay in sales tax can be deducted on our federal tax returns. I itemize what I pay in sales tax every year..

Only works if you are able to itemize... If you don't make enough to make itemizing worth doing, that doesn't become a factor.

ETA: and didn't that expire LAST YEAR (making it eligible to still claim in 2014 for the 2013 tax year, but not in 2015 for the 2014 tax year) anyway?

[tallguy]

ETA: and didn't that expire LAST YEAR (making it eligible to still claim in 2014 for the 2013 tax year, but not in 2015 for the 2014 tax year) anyway?

It "expires" every year or two, which is why it is such a hassle for everybody in non-income tax states while Congress debates about whether to extend it.  They don't have the guts to just make it permanent as a simple measure of tax fairness, but it was extended again. 

[Deleted]

Dec 27, 2014 22:13:24 GMT -5 tallguy said:

ETA: and didn't that expire LAST YEAR (making it eligible to still claim in 2014 for the 2013 tax year, but not in 2015 for the 2014 tax year) anyway?

It "expires" every year or two, which is why it is such a hassle for everybody in non-income tax states while Congress debates about whether to extend it. They don't have the guts to just make it permanent as a simple measure of tax fairness, but it was extended again.

Ahhhh... so it did. Originally I just searched for "state sales tax deduction". This time I added "extended" and came up with several links that showed the extension.

[Tennesseer]

Dec 27, 2014 21:51:01 GMT -5 @richardintn said:

Dec 27, 2014 20:45:16 GMT -5 Tennesseer said:

As we do not have a state income tax, a portion of what we pay in sales tax can be deducted on our federal tax returns. I itemize what I pay in sales tax every year..

Only works if you are able to itemize... If you don't make enough to make itemizing worth doing, that doesn't become a factor.

ETA: and didn't that expire LAST YEAR (making it eligible to still claim in 2014 for the 2013 tax year, but not in 2015 for the 2014 tax year) anyway?

It was approved for 2015 and retroactive for all of 2014 when the Omnibus Agreement and H.R. 5771 bills was passed by congress and signed by Obama earlier this month. It is pretty much like that every year-not approved until the end of the year.

[Tennesseer]

Dec 27, 2014 21:51:01 GMT -5 @richardintn said:

Dec 27, 2014 20:45:16 GMT -5 Tennesseer said:

As we do not have a state income tax, a portion of what we pay in sales tax can be deducted on our federal tax returns. I itemize what I pay in sales tax every year..

Only works if you are able to itemize... If you don't make enough to make itemizing worth doing, that doesn't become a factor.

ETA: and didn't that expire LAST YEAR (making it eligible to still claim in 2014 for the 2013 tax year, but not in 2015 for the 2014 tax year) anyway?

You can get the standard $500 deductable and no proof necessary of what you paid or you can itemize and increase the amount which is what I do. I save all my receipts.

[djAdvocate]

Dec 27, 2014 20:33:14 GMT -5 @richardintn said:

I don't know where they got their idea of Tennessee being a state that doesn't tax it's residents... We may not have an Income tax, but we do have a HIGH AS CRAP sales tax (9.75%, here)... on every frakkin thing.

this is a great argument against consumption tax: you guys are not generating enough revenue from it to not be sucking federal guvmint titty.

[Deleted]

Dec 27, 2014 23:23:13 GMT -5 Tennesseer said:

Dec 27, 2014 21:51:01 GMT -5 @richardintn said:

Only works if you are able to itemize... If you don't make enough to make itemizing worth doing, that doesn't become a factor.

ETA: and didn't that expire LAST YEAR (making it eligible to still claim in 2014 for the 2013 tax year, but not in 2015 for the 2014 tax year) anyway?

You can get the standard $500 deductable and no proof necessary of what you paid or you can itemize and increase the amount which is what I do. I save all my receipts.

I meant itemize, as opposed to taking the "standard deduction" on your federal return... not be able to individually list the receipts.

[EVT1]

You don't need receipts for the sales tax deduction- to a limit I think.

But I passed the point- the standard deduction is cheaper- and I tried to make it work with every trick I could come up with

But look at the upside Richard and TN- they want to end the Hall tax   It will be coming out of your ass one way or another.  TN will be like KY-broke and clueless how it happened.

[happyhoix]

As someone who lives in the south, in the very poorest county of my southern state, I find it deeply ironic that my county votes about 90% republican at each election, and during each election cycle the little local newspaper is full of letters to the editor decrying the heathen Democrats who like Obamacare and doling out free money to lazy people who won't work, making our taxes go up.

The reality is our little county has the highest percentage of kids getting free lunches and kids in head start out of the whole state. Highest percentage of people using food stamps. We also have one of the highest rates of adults on medicare and medicaid.

Somehow, the same people that complain about giving free stuff to the lazy poor have no problem applying for food stamps or school lunches. I don't know if they just don't understand these benefits come from taxes, or if they feel that they, and a lot of their friends and neighbors, somehow 'deserve' the food stamps and school lunches while everyone living everyplace else is just lazy. 

Sometimes I wish I could just flip the switch on benefits for the county for some period - say, six months - so people can see just how much our community benefits from other people's tax dollars.