IRVINE – In light of today’s House vote to pass the GOP Tax Scam, the DCCC is updating our GOP Tax Scam Cheat Sheet to reflect how the bill still devastates Californians. You can read the full cheat sheet below.
BELOW IS A BREAKDOWN OF WHICH CALIFORNIANS ARE PARTICULARLY TARGETED IN THE GOP TAX SCAM:
California Taxpayers
- State and local tax (SALT) & property tax deductions
- The GOP Tax Scam would cap SALT & property tax deductions (combined) at $10,000.
- 6 million Californians claim the SALT deduction, saving such beneficiaries $101 billion.
- Reducing the SALT deduction would hit California hardest.
- Reducing the property tax deduction would significantly affect California homeowners, with the average deduction totaling $6,000 in California.
Middle Class
- An estimated 83 percent of the benefits from the GOP Tax Scam would go to the top 1 percent.
- GOP Tax Scam slated to raise taxes on an estimated 87 million middle class
People Buying Health Insurance
- Repeal of the individual mandate
- The GOP Tax scam would repeal the individual mandate, a move that would increase health insurance premiums on the individual market by an average of 10% and cause 13 million fewer Americans to be insured.
Future Generations
- The GOP Tax Scam could add a whopping $2.2 trillion to the national deficit, saddling future generations with even more debt to pay off.
Mrried Couples & Large Families
- The loss of the personal exemption will hit families with children especially hard, meaning those with more than three children could end up paying higher taxes.
- GOP Tax Scam comes with a built-in disadvantage for married couples who, between paying $10,000 in state and local taxes and having other write-offs, will still find it worthwhile to itemize their deductions after the 2018 tax year. When they do, they’ll encounter a marriage penalty. Why? Because it doesn’t matter if your household consists of two highly paid professionals with children or if you’re a high-income bachelor: the $10,000 tax write-off cap is the same for the family and the bachelor.
- GOP Tax Scam is structured in such a way that families may get a tax break up front, only to pay more over time.
- GOP Tax Scam would penalize any family with more than three children might end up paying more under the Republican tax reform plan. That’s because the bill makes a little-noticed but seismic change in the tax code: eliminating the personal exemption, a longstanding tax break that currently allows taxpayers to reduce their taxable income by $4,050 for each dependent in the family.
BELOW IS A BREAKDOWN OF HOW EACH CONGRESSIONAL DISTRICT IN CALIFORNIA WOULD BE NEGATIVELY IMPACTED BY THE GOP TAX SCAM:
Rep. Mimi Walters (CA-45)
- SALT & property tax deductions
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- 37% of taxpayers in Walter’s district benefit from the SALT deduction.
- Average deduction for each beneficiary is $18,200.
- 77% of homeowners in Walters’ district benefit from the property tax deduction.
- Average deduction for each beneficiary is $5,715.
- Capping combined SALT & property tax deductions eliminate savings on $13,915 worth of taxes for each beneficiary.
- Individual mandate repeal
- Premiums on the individual market are expected to rise by 10%.
- An estimated 36,600 less people are expected to have health insurance in Walters’ district.
Rep. Ed Royce (CA-39)
- SALT & property tax deductions
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- 33% of taxpayers in Royce’s district benefit from the SALT deduction.
- Average deduction for each beneficiary is $15,575.
- 74% of homeowners in Royce’s district benefit from the property tax deduction.
- Average deduction for each beneficiary is $5,596.
- Capping combined SALT & property tax deductions eliminate savings on $11,171 worth of taxes for each beneficiary.
- Individual mandate repeal
- Premiums on the individual market are expected to rise by 10%.
- An estimated 36,000 less people are expected to have health insurance in Royce’s district.
Rep. Steve Knight (CA-25)
- SALT & property tax deductions
- 33% of taxpayers in Knight’s district benefit from the SALT deduction.
- Average deduction for each beneficiary is $16,723.
- 73% of homeowners in Knight’s district benefit from the property tax deduction.
- Average deduction for each beneficiary is $5,020.
- Capping combined SALT & property tax deductions eliminate savings on $11,743 worth of taxes for each beneficiary.
- Individual mandate repeal
- Premiums on the individual market are expected to rise by 10%.
- An estimated 31,600 less people are expected to have health insurance in Knight’s district.