the reason it benefits CA more than other states is because CA has more upper middle class wage earners.
Those over $80k per year.
But EVERYONE who itemizes will see a tax increase.
Everyone. No matter what state they reside in.
You will no longer be able to deduct property taxes, sales taxes or state income taxes. No longer able to deduct the excise tax on your car registration.
EVERYONE WHO ITEMIZES WILL SEE A TAX INCREASE!
Agreed. I’m a sole proprietor and itemize in our filings. I know this will increase my taxes but by how much I have no idea yet.
The relief that workers like me have is that I can defer a lot of gross income through various retirement accounts. I can contribute to an individual 401K as well as a SEP IRA. That helps and I take full advantage of this because I have to pay both ends of the Social Security and Medicare taxes as well as having to fund my own health insurance fully.
What I’d be curious to see is if this final plan will include raising the ceiling for contributions to retirement accounts, even for W-2 wage earners. That would make sense to me - defer the taxes and encourage people to save more for their retirement.