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de Leon must be a real Ponce.

From the article, “De Leon’s office said that one-third of taxpayers, about 6 million people, itemized deductions on their tax returns and claimed an average of $18,438 for state and local taxes.” So he has mixed in real estate taxes, which remain deductible with the capped state income taxes? If so, then that 6 million number is probably greatly reduced.

So let’s say that this “charity” scheme is implemented and average taxpayer from his 6 million make an $8,438 donation. At best, the taxpayer gets a reduction in taxable income at the maximum bracket rate of 37% or a reduction in federal income tax of $3,122.06. And yes, that would be an incentive to contribute, no avoiding that. It does assume their charitable contributions are not capped (at 60% of AGI), which would reduce the benefit. They are still out $5,315.94.

And that all presupposes the “charity” passes muster. Wouldn’t it be special if the application languished in IRS review for a couple of years á la Lois Learner. Further, the “charity” will probably be run as a slush fund (think Clinton Foundation), buying votes with distributions, buying special access, favoring one class over another, with far less voter control than they would have over legislated distribution schemes. Not to mention lucrative salaries for the ex-pols who would run this slush fund.

And no, de Leon, when you say “The Republican tax plan gives corporations and hedge-fund managers a trillion-dollar tax cut and expects California taxpayers to foot the bill” what has really happened is that the rest of the country is no longer subsidizing your extortionate tax scheme by letting your fat cats pay less than their “fair share” by writing it all off.

Finally, corporations are a pass-through entity. Taxes they pay are included in their pricing to their customers. Reduce their tax burden and the pressure to reduce prices in a competitive market should take care of that.