By Liam Dillon
December 23, 2017
Democrats in the California Senate are planning to write legislation to lessen the effects of the elimination of popular tax breaks in the GOP’s overhaul of the federal tax system.
To finance broad-based corporate tax cuts and reductions in individual tax rates, the GOP plan caps the deductibility of state and local income and property taxes — a benefit used often in suburban areas of California.
“The Republican tax scam disproportionately harms California taxpayers,” Senate President Pro Tem Kevin de León (D-Los Angeles) said in a statement. “Our hard-earned tax dollars should not be subject to double-taxation, especially not to line the pockets of the Trump family, hedge fund managers and private jet owners.”
De León, who also is running for U.S. Senate, said the state Senate is working with law professors at UCLA, UC Davis and the University of Chicago to develop the legislation.
Ideas being considered, according to a de León spokesman, include:
- Reducing state personal income taxes through a tax credit program and offsetting that amount through payroll taxes.
- Allowing individuals to make voluntary gifts to the state of California, which would be deductible as a charitable donation under federal law. The deduction for the donated amount would replace the state and local tax deduction.
Lawmakers return to Sacramento in January.