Slashes SALT Deduction That Saves Californians Thousands of Dollars Per Year, Will Cost California $101 Billion Annually
This morning, with less than one week until county property taxes are due throughout California, every California Republican in Congress just voted in favor of the Senate-passed budget that officially fast-tracks the Republican plan for a Middle Class Double Tax on hardworking families in order to give tax breaks to the rich and big corporations. Worse, they voted to eliminate the State and Local Tax (SALT) deduction, which saves Californians thousands of dollars per year. In fact, California is the state that is most affected by the State and Local Tax Deduction, which 1 in 3 Californians claim, meaning that House Republicans have voted to sell Californians out, raising taxes on middle class families across the Golden State to pay for tax breaks for the wealthiest.
Details of the specific amendment that eliminates SALT, included in today’s budget, are HERE.
“With this budget, every California House Republican is officially on the record supporting a middle-class tax increase – something they must explain to families and older Americans in Californians who will have less money in their pocket,” said DCCC Spokesman Drew Godinich. “Particularly shocking is that this budget slashes the State and Local Tax deduction, which families rely on in California for thousands of dollars in their pockets each year and will cost Californians $101 billion . It’s clear as day that House Republicans are looking out for big corporations and the wealthiest in our country, not the people that sent them to Washington.”
BACKGROUND:
California Republicans have been silent on this issue, even as Republicans in New Jersey and New York – two other states that will be disproportionately affected by the SALT elimination – have spoken out against this plan:
“Yet California Republicans have been noticeably absent from the public pushback. In fact, they seem to be actively avoiding the issue. McClintock, Knight, Royce, Walters, Issa and Denham did not respond to McClatchy’s requests to speak about taxes this week, or whether they are involved in the ongoing negotiations in the House”
Make no mistake—the budget resolution includes a plethora of harmful policies that would devastate middle-class families. It slashes $473 billion from Medicare, cuts more than $1 trillion from Medicaid and imposes $5 trillion in discretionary cuts to programs like Head Start, Pell Grants, and cancer research.
But its true purpose is to pave the way for the Republican tax bill, which Republicans intend to jam through without any input from Democrats. This bill cuts taxes for millionaires, billionaires, and big corporations, and leaves middle-class families holding the bag. Even President Trump’s economic advisor, Gary Cohn, admitted that he “can’t guarantee” middle-class families won’t pay more taxes as a result.