Posted on 10/25/2017 7:19:22 PM PDT by Mariner
WASHINGTON - After weeks of silence, California’s 14 Republican members of Congress will have to weigh in for the first time this week on a tax plan that could hit millions of Californians.
Republicans vote Thursday on their budget, which paves the way for the party to advance its tax overhaul. As it’s currently framed, the overhaul would eliminate the state and local tax deduction, a write-off that disproportionately benefits taxpayers in high-tax, high-cost states like California. While the state’s Republicans have avoided taking a position on that proposal, Democrats are prepared to paint any Republicans voting for the budget as “accomplices” in the push to eliminate the deduction, warns House Minority Leader Nancy Pelosi.
“It is really an urgent time for the state of California,” the powerful San Francisco-area congresswoman told McClatchy, noting that the state’s residents saved more than $100 billion in taxes by taking the deduction in 2015.
President Donald Trump and Republican leaders have pitched their tax overhaul as a boost, first and foremost, for the middle class. And tax experts note that the vast majority of households taking advantage of the state and local deduction earn more than $100,000, which is considered wealthy in many parts of the country.
But as the state’s Democratic delegation noted in an Oct. 23 letter to the leaders of Congress’ tax-writing committees, roughly 83 percent of California households claiming the deduction in 2015 earned under $200,000. Given the high cost of living in much of the state, that qualifies as solidly middle- or upper-middle class, Pelosi and other Democrats argue.
Pelosi also points out that Republicans represent many of those Californians – on average, more than one-third of Republicans’ constituents used the deduction in 2015, IRS data shows. In seven GOP districts – those represented by Reps. Tom McClintock...
(Excerpt) Read more at sacbee.com ...
Dead.
There's more than enough of them. Upwards of 50.
Pelousy has been delusional for quite some time already
“Pelousy has been delusional for quite some time already”
Which has nothing to do with this article or thread...
well, i think it does
If this passes Trump can kiss California good-bye in 2020.
If this fails, Trump can kiss California good-bye in 2020.
Right now it looks like there’ll be a cap on SALT deductions.
But things can change.
She should know all about raising taxes, now shouldn’t she?
It does look like most of the Republican districts are from much lower income areas of California (generally inland), and thus will feel little or no pain from the tax plan, since the Standard Deduction doubles - in fact, many in those districts will gain from it.
The people who will really feel it are in the high income / high housing priced areas, the areas represented by DEMOCRATS, which is why the Democrats are leading the opposition to the plan (both in California and in the expensive areas of the Northeast).
“If this passes Trump can kiss California good-bye in 2020.
If this fails, Trump can kiss California good-bye in 2020.”
Correct, Trump loses CA either way.
But this is about whether the Republicans in the House can put together a majority without Blue State Republicans.
Because there’s not a single one of them that will vote for it.
Here’s a thought...California could always lower their taxes. (obviously, not going to happen)
Did you read the article?
“from much lower income areas of California”
Dream on.
1/3 of Republican District constituents take the deductions. If you’re in a red district in Texas it’s a similar number but you’re not really at risk because...it’s red Texas and you can forfeit a large portion of the vote.
Somebody like Tom McClintock (damn solid conservative) would not stand a chance if he soured even 10% of his voters.
Uh huh.
Eh, this will still only impact a very small % of Republicans in liberal states after accounting for lower tax rates and higher standard deductions (not even counting the benefit of higher equity markets from lower corporate taxes and increased demand for US labor from lower corporate tax rates)
I wish they’d go with a post card flat tax and be done with it.
“So Pelosi is against tax hikes.”
Of course not.
The state of California could try to manage its budget better. The politicians could stop the anti-growth policies and generous welfare schemes that drive up taxes. There are all kinds of things they *could* do but won’t.
None of this has anything to do with Republicans. If there was not a single Republican in the state, the Dems would still find a way to blame Republicans for their own failures. It’s what they do.
Again, don’t be fooled by those numbers. They’re only true with TODAY’s Standard Deduction. Double the Standard Deduction and those percentages would likely drop by at least 2/3’s, at least in the lower income areas of the state.
For example, if I can itemize $20k and the SD is $12.7k, I’ll itemize and save nearly $2k in taxes. But if I can itemize $20k and the SD is doubled to $25.4k, guess what, I DO NOT itemize.
But you are probably right, in the end, as the Democrats and their media will likely convince the country using today’s percentages rather than what would be the much lower post-Trump plan percentages (after all, it worked on you).
“Eh, this will still only impact a very small % of Republicans in liberal states after accounting for lower tax rates and higher standard deductions”
There’s no evidence to substantiate that.
First, it will affect every taxpayer who itemizes. That’s 43 million households. In every state.
One could argue that some of those will be peeled off with the lower standard deduction. But doubling that from ~$6,300 hardly covers the loss of SALT for most.
Remember, SALT covers every excise tax, property tax, school bond tax, sales tax and state income tax.
I and several I work with will get hammered.
Income and cost of living are more a determinant than state you live in.
Oh, you don’t mean like that .20 cent per gallon of gas tax hike which goes into effect next Wednesday?
Or raising the cost for renewing the tag on my vehicle by $120 dollars a year?
Pffft!!!
I make well into six figures and am single.
My standard deduction might increase to around $12.5k...if the Republican staffers can be believed.
My Mortgage Interest deduction exceeds that before any SALT is considered.
I am certain my taxes will go up, as will millions of those like me.
And we’ll work against Republicans every day from that day forward.
And I get it that you don’t care.
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