The only thing worse than raising taxes on income during times of a severe recession – bordering on depression – would be raising taxes on taxes. That’s right, you read that correctly. There is actually a bill being pushed through this legislative session that proposes raising taxes on taxes:
SB523: Federal Income Deductions as State Income (Tax on Tax) sponsored by Sen. Otiz y Pino. This bill will require individual income taxpayers who itemize deductions on their federal return to add back any state and local taxes included in their itemized deductions in determining taxable income for the state income tax. Basically requiring taxpayers to pay a tax on tax.
Good to see the nice folks up in Santa Fe looking out for us.