(National Sentinel) California Whinin’: Democrats in California are already complaining about President Donald J. Trump’s tax reform plan, saying that it will hit their residents particularly hard in the pocketbook if it passes.
As reported by the Los Angeles Times:
Many Californians face a big financial hit under the Republican tax plan, which would eliminate a major tax break that benefits state residents more than those anywhere else in the U.S.
The federal deduction for state and local taxes allowed Californians to reduce their taxable income by $101 billion in 2014, according to an analysis by the nonpartisan Tax Foundation.
The tax outline released Wednesday by President Trump and top congressional Republicans would ax the break, which largely benefits residents in states that are Democratic strongholds.
The blue states of New York, New Jersey, and Illinois, in that order, are the next three hardest-hit by the loss of deduction, should it remain in any final tax reform bill the president signs.
“Republicans in Washington have once again zeroed in on California to punish us and make our state the single biggest loser in their reckless tax scheme,” Senate President Pro Tem Kevin de León, D-Los Angeles, complained.
It’s pretty arrogant to assume that “Republicans in Washington” crafted a tax reform bill specifically to hurt Californians, but if that’s really the case, it’s brilliant because it will boldly inform blue state residents just how outrageously expensive it is to live in liberal “utopia.”
More than that, we love how the plan forces Leftists to live the life they preach: If California’s “rich” don’t think they’re paying enough in taxes, well, this plan gives them an opportunity to make up for their “sin” of being successful.
In any event, Trump’s plan is being lauded by a number of conservative organizations and the House Freedom Caucus, which has already endorsed it because for the vast majority of working Americans, the plan lowers their burden. It also lowers the top rates on corporate America and businesses so that they can pay fewer taxes and hire more people to expand which…results in more taxes for the government. Reagan did the same thing in the 1980s, and it led to the longest, greatest expansion of the U.S. economy in our history.
The Republican plan would greatly simplify the tax code by reducing the current seven tax brackets down to three: 12 percent, 25 percent, and 35 percent. It mentions the potential for one additional top rate “to ensure that the wealthy do not contribute a lower share of taxes paid than they do today.”
Although the lowest rate rises from a current 10 percent to 12 percent, it is unlikely that this would amount to an increase in the tax bills of any taxpayer. That’s because the proposal also nearly doubles the standard deduction and increases the child tax credit.
In another pro-family move, the proposal also calls for a new $500 credit for non-child dependents, such as grandparents and disabled adults.
It’s not the most conservative plan that could have been introduced, but it’s a reasonable plan and it will definitely benefit the most Americans and nearly every company, both of which are good things.
And if it ticks off Left-wing blue-staters, more’s the better.
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