Trump’s Tax Reform Targets California

GOP plan proposes double taxation, big savings for Trump himself

by Brian Leubitz

While there are still a lot of specifics to emerge, it is clear that the GOP tax plan would hit California hard. Of course, the biggest item that hits mostly blue states with higher taxes is the elimination of the state tax deduction. Think about how upset this would make Californians: under this plan, you would be paying taxes on the money that is going to taxes. And it is a lot of money, especially for a state like California that is a big net donor to the federal government. Details below, and Senator de Leon’s comments to the right.

The biggest deduction on the chopping block is the state and local tax deduction, which enables Californians to subtract those tax payments from their income before calculating how much they owe the IRS. In 2015, federal data shows that more than 6 million people in the Golden State claimed the deduction, worth $112.5 billion. That’s more than any other state, according to the Tax Foundation, a right-of-center tax policy research organization. California is one of just six states, along with New York, New Jersey, Illinois, Texas and Pennsylvania, that together claimed more than half of all state and local tax deduction dollars in 2014, the foundation says. (SacBee 9/27)

Putting aside the fact that Trump carried Pennsylvania, and would likely need it in 2020, that $112.5 billion represents a huge hit for the state. Now, you can imagine that the ads against such a measure wouldn’t be too hard to craft, but that doesn’t make it any less dangerous.

And of course, the GOP can’t really just sell the plan on its merits. Apparently big tax cuts to the rich aren’t very popular, so instead, they are just lying.