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 ...
sorry - rather than 15%, 25%, 35% and 39.6% they are talking about 12%, 25%, 35%, and 39.6%
>> Republicans in Blue States will kill this proposal.
It’s definitely an effective tax hike on the middle-incomers in the states that contribute most per household — net federal which excludes the additional state tax.
>> And we’ll work against Republicans every day from that day forward.
The top fed revenue contributers are TX, CA, NY, and FL the distant 4th. When averaging the per household fed contributions, CA and NY contribute more than 15% of TX each. And that’s in addition to state and local taxes.
Too many proud fools argue they’re covering for NY and CA. They’re most definitely not.
I’m in California, make good money, and my initial reaction was pretty mad that this deduction be eliminated. Now I’m starting to think it’s another Trump negotiating tactic.
The California dems have been befuddled for a few weeks on how to respond, now they come out and say “this isn’t fair to California, you need to lower taxes more?!?” Pelosi, of all people, saying this?
Trump’s response: “OK”.
Pelosi and other blue state dems: “Wait! What did we just agree to?”
cutting spending would be the best solution yes we agree
but everyone throughout the USA subsidizing the half dozen high tax states only encourages the political hacks in those ripoff states to keep raising taxes even higher, which is no good for anybody
as well as being super-unjust
basically I think our tax system is both highly dysfunctional, super unfair, and basically a ripoff...as well it depresses the economy big time and consumes billions in wasted resources for administration auditing and compliance efforts.
a real anchor on the American economy, needs replacing with a simple fair tax, you design it ok with me
Republicans in CA, NY, NJ, and other states who vote for the current budget will be screwing over their citizens, who are going to face a massive tax hike.
When Pelosi and Schumer make more sense than our side, we are in the wrong.
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