About 1 million Californians are on the hook for a tax increase.
President Trump’s tax plan benefits most Americans but wealthy Californians are going to take a hit. That’s because they’ll no longer be able to take advantage of a deduction that they’ve been using for years.
They’ll have to pay $12 billion. 43,000 fabulously wealthy people are responsible for $9 billion of the sum while the upper-middle class will shoulder the rest.
“The scenario that was being presented where Democrats were crying that Californians won’t benefit from it truly was out of place,” George Runner, a member of the Board of Equalization and the Franchise Tax Board, said.
“The ‘higher-income bracket’ Californians who probably will pay more tax… for the most part, it’s the price you pay for having a high-priced house in California.”
Most Californians will see a hefty tax cut.
“What we’ve been telling taxpayers is just stay in touch with your own situation, stay in touch with your tax preparer,” Controller Betty Yee, a member of the tax board, said.
“And with the state… we shouldn’t rush to judgment.”
Gov. Jerry Brown is upset because the “evil” tax cuts supposedly only benefit the wealthy… but, at the same time, he’s annoyed that rich Californians will have to pony up more money. He’s terrified that rich people will flee the state.
According to Assemblywoman Melissa Melendez, a member of the Revenue and Tax Committee, “most Americans and Californians as well are going to see a tax cut, contrary to what some others have been saying.”
California lawmakers, particularly Gov. Brown, have a fractious relationship with President Trump. The state is currently embroiled in a lawsuit with the Justice Department over its backward immigration policies.
The anti-Trump vitriol in the state is so off-putting that a few California jurisdictions broke away from the governor and are supporting the federal government in its lawsuit.
(Source: Sacremento Bee)