CA Families Face Spiraling Consequences Under GOP Tax Scam
Next week, California’s 14 House Republicans could cast the deciding votes in whether the GOP tax scam becomes law – a scam with uniquely devastating consequences for California’s families in particular. Why would these members vote for a bill that is so clearly damaging for their state and contrary to the best interests of their constituents?
While House Majority Leader Kevin McCarthy and his GOP colleagues rush to hand massive giveaways to the wealthiest one percent and corporations shipping American jobs overseas, numerous media outlets have taken notice of the damage that the horrific #GOPTaxScam will do to the Golden State:
The Republican tax overhaul plans pending in Congress would limit the ability of taxpayers to write off losses from wildfires and other disasters… House Republicans have proposed eliminating the deduction altogether…
The bill proposes eliminating—or at last dramatically modifying—the tax deduction for personal losses due to natural disasters, including fire.
President Donald Trump and congressional Republicans are primed to ram through tax cuts, but unless you’re part of the 1 percent, it wouldn’t be very good for your finances.
As California burns, Congress is planning to limit taxpayers’ ability to write off losses from future wildfires and other disasters.
But the first big win for Republicans in Washington is a loss for the rest of us… The biggest beneficiaries, though, will be businesses with the highest profits and individuals with the highest incomes, and some of the biggest losers could be those who can scarcely afford the higher tab — graduate students, for example.
California taxpayers would be hit disproportionately hard under the Republican tax plan because of changes to two popular tax breaks.
The GOP tax plan would steeply cut corporate and personal tax rates while getting rid of most deductions. That will pinch the Golden State because more than six million Californians take advantage of the state and local tax deduction each year, deducting an average of $18,438 per family, according to the non-partisan Tax Policy Center.
“But one particular change – the elimination of the ability to deduct state and local taxes – would hurt California more than almost any other state.”
It turns out, the congressional Republicans are making matters even worse for the victims of these wildfires in Los Angeles and others yet to occur, as well as victims of earthquakes and other acts of God.
As a state with very high state income taxes and high real estate costs, resulting in high mortgage interest costs, the lack of deductibility of these costs will result in much higher tax payments for most San Diegans.
Chances are, many state residents’ tax bills will be higher in years to come.
But the vote is still dangerous. Republicans in California clearly ran on cutting taxes — but this tax bill could raise taxes on their constituents.