Best Monday In Years! Another Win For The President; And, Schumer Is Fuming; Pelosi Is Plotting-- September 30, 2019

Updates

October 2, 2019: NYC McMansions in free-fall. Link here.  

 

Original Post

Behind a Bloomberg paywall:

Link here.

A federal judge handed the Trump administration a win Monday, dismissing a lawsuit from states with high taxes.

The lawsuit asked U.S. District Judge J. Paul Oetken to block the Tax Cuts and Jobs Act's limit on how much people can deduct in state and local taxes (SALT). The provision effectively raised the tax burden on citizens of high-tax states.

New York, New Jersey, Connecticut and Maryland brought the suit in July 2018, claiming the tax deduction limit was a way for the Trump administration to stick it to blue states. The judge ruled that the limit did not violate the 10th Amendment, which says that powers not delegated to the federal government in the Constitution are left to the states.

"The cap, again like every other feature of the federal Tax Code, is a part of the landscape of federal law within which states make their decisions as to how they will exercise their own sovereign tax powers," Oetken wrote.

"Because the States have failed to plausibly allege that the cap, more so than any other major federal initiative, meaningfully constrains this decision-making process, this Court has no basis for concluding that the SALT cap is unconstitutionally coercive," he continued.

The Tax Cuts and Jobs Act limited the state and local tax deduction at $10,000, which is below the average of what individuals claim in states like New York and Connecticut. Before the cap, the average deduction claimed in California, for example, was $22,000, according to Kevin de Leon, a Democratic member of the California state Senate.

As the reader who sent me this, said, "Please, pass the SALT."

"Thank you."

From the reader who sent me this, the background on the judge that threw this case out --

I pulled the Wiki on this judge (isn't that a great 21st century phrase; sort of like doxing, but legitimate) and scanned it to see who had appointed him.

Schumer recommended that Obama appoint him!  OMG.  If there were ever some venue shopping, I'd bet that this case was shopped.  Judge Oetken, an Eli of all things, worked for President Clinton, then left when George Bush was elected.  I am sure the D's thought they had this in the bag.

A Monday ruling, so there's a whole week's news cycle to relish this.  Normally, they'll bury bad news on a Friday to let it blow over.  I imagine Schumer's phone is ringing off the hook.  And of course, there's Pelosi and the California problem.  Those 2 big D's are going to have to divert a bunch of time and talent to manage this.  (;>)

And you know, with the House tied up with impeachment, nothing is going to get done with regard for tax relief for the rich and famous.

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Book Recommendation

Re-posting:

Anyone interested in natural history, run, don't walk to your nearest bookstore or surf over to Amazon and buy Natural Histories Innumerable Insects: The Story of the Most Diverse and Myriad Animals on Earth, Michael S. Engel, c. 2018.

I'm looking at this book again. It's really a great book. Highly recommended for grandparents to study and then share with their elementary-age grandchildren.

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Not A Book Recommendation
-- At Least Not Yet For 5 Year Old Sophia

Over at Amazon.