Resistance State: California in the Age of Trump

Between Sacramento and Washington D.C. sits the rest of the country, and a chasm. On immigration and taxes, guns and healthcare, cannabis and climate change, California is the federal government’s equal and opposite reaction. One year into President Trump’s first term, the push and pull continues—playing out under the Capitol dome, in the courts and on Twitter.

Ready for another year? Follow along here.

How California policy affects you, straight to your inbox

Resistance State

Oct. 26, 2017 12:34 pm

All 14 California GOP members back plan to repeal state and local deductions

Taxes

All 14 California House delegates voted today to back a budget blueprint that could eliminate state and local tax deductions, a move that would be costly for many California taxpayers.

Some members in vulnerable districts immediately sought to downplay the vote, saying they have been assured the Republican tax overhaul will tackle or offset the potential tax hit from the loss of those deductions. The vote clears the way for House leaders to unveil their tax plan next week.

“I am confident (it will be fixed), but I’ve also said that is my number one priority, so if we can’t get it fixed then we’re going to have problems,” said Rep. Steve Knight of Palmdale.

How California policy affects you, straight to your inbox

A day earlier, Gov. Brown had pleaded with GOP members not to support the budget. About one in three California taxpayers claim the deduction. If it were repealed, filers would see an average increase of $3,290.

“Getting rid of an individual’s ability to deduct his or her California taxes is a horrible idea, but it is made far worse when you preserve—at the same time—the right of corporations to take those same deductions,” he wrote.

The Republican plan calls for steep tax cuts for corporations and promised reductions for middle-income taxpayers, a doubling of the standard deduction used by most Americans, shrinking the number of tax brackets from seven to three or four, and the repeal of inheritance taxes on multimillion-dollar estates. The child tax credit would be increased and the tax system would be simplified.

Already, House Minority Leader Nancy Pelosi of San Francisco is vowing to label Republicans “accomplices” in eliminating the state and local tax deduction. As soon as President Trump unveiled his budget framework that would eliminate the write-off, state Democrats condemned the move for targeting taxpayers in high-tax, high-cost states such as California.

But California Republicans remain committed to overhauling the tax code. Prior to the vote, House Majority Leader Kevin McCarthy of Bakersfield said, “A vote for the budget is a vote to move tax reform forward.”

McCarthy Talks Tax Cuts, New Iran Sanctions | Fox News

House Majority Leader Kevin McCarthy (CA-23) appeared on Fox News this morning to discuss the latest on tax reform and key votes in the House this week on Iran and North Korea sanctions.

Economy Reporter
Resistance State

Jan. 23, 2018 11:22 am

California lawmakers get partisan over even a symbolic move to deter offshore drilling

Oil rig off the California coast
Image via Wikimedia Commons
Environment

A resolution declaring the California Legislature’s opposition to the Trump administration’s proposal to expand offshore oil drilling, shouldn’t, on the face of it, be very controversial. The vast majority of Californians oppose drilling off the state’s coast. And a resolution doesn’t actually change the law anyway—it’s just a formal way to state an opinion.

But never underestimate the potential for politics to rear its head.

After news broke earlier this month that the federal government would exempt Florida from its plans to expand offshore drilling—widely seen as a move by the Republican administration to favor a state with a Republican governor—a GOP assemblywoman in California drafted a resolution saying that California wanted the same treatment.

How California policy affects you, straight to your inbox

“Protecting our California coastline has had bipartisan support for decades, and I think it’s much more impactful when someone from the same party is willing to bring colleagues together and say, ‘No. We think you should leave our coastline protected,’” said Assemblywoman Catharine Baker of Dublin.

Though Baker is a Republican, most voters in her suburban East Bay district are Democrats. Unsurprisingly, Democrats have been trying for a few years to snag her seat. They’re trying again this year—and the Assembly Democrats’ political consultant quickly seized on Baker’s resolution.

“There is no way Dems should allow Baker, who has a failing 42 percent grade on the Sierra Club Legislative Scorecard, to be a fake face of the state’s resistance against the Trump Administration’s rollback of protections of our coast,” political consultant Bill Wong wrote in an email to the Democratic caucus. “Dems should introduce their own legislation and denounce the Baker resolution as a deceptive effort to fool voters in her district.”

Wong said he sent the email because he didn’t want “Democrats to validate her lackluster record, her misrepresentation of her environmental record.” (It’s true that Baker earned a 42 percent score from the Sierra Club last year. It’s also true that she was among a handful of Republicans who voted to extend California’s cap-and-trade program last year, and was the sole Republican who voted in 2016 to mandate that the state drastically reduce its greenhouse gas emissions by 2030.)

Sure enough, four days after Baker’s resolution was introduced, four Democrats introduced a similar resolution. The lead author, Assemblywoman Monique Limon of Santa Barbara, said she and her Democratic colleagues had announced their plans to draft a resolution before Baker introduced her version.

“Hers may have crossed the desk first,” Limon said. “But we made it very public to all our colleagues that this is something we wanted to work on.”

Baker said she was rebuffed when she asked last week if she could be included as a co-author on the Democrats’ resolution. But the tiff seems to have resolved after CALmatters began making inquiries. Now both resolutions, which are procedurally different, will have Baker and Limon as bipartisan co-authors.

Political Reporter
Resistance State

Jan. 10, 2018 4:56 pm

Judge halts Trump’s cancellation of the DACA program—for now

Dreamers

A federal judge in California has blocked deportation of participants in the Deferred Action for Childhood Arrivals program, allowing those whose legal status has expired to apply for renewal until a court challenge of the Trump administration’s cancellation of the program is resolved.

The injunction essentially pauses a Trump plan to end DACA, which provides 2-year work permits and protection from removal for some young undocumented immigrants brought to the country as children.

California Attorney General Xavier Becerra, along with other attorneys general and the University of California, asked for the injunction in November while the underlying court case moves forward.

How California policy affects you, straight to your inbox

“Dreamers’ lives were thrown into chaos when the Trump administration tried to terminate the DACA program without obeying the law,” Becerra said. The “ruling is a huge step in the right direction.”

U.S. District Judge William Alsup found that harm would be done if termination of the program began and that the public interest is better served by waiting until the case is decided. Alsup said Washington’s decision was “arbitrary and capricious” and could result in a successful challenge. He wrote: “Plaintiffs have clearly demonstrated that they are likely to suffer serious irreparable harm absent an injunction.”

The White House pushed back, calling the injunction “outrageous.”

On Sept. 5, U.S. Attorney General Jeff Sessions announced that DACA would be terminated in March. The judge’s ruling allows anyone who had DACA status as of that date to submit a renewal application.

Advocates for immigrants are now scrambling to find out when they can begin to re-apply and said it would be up to the Department of Homeland Security.

There are about 690,000 DACA recipients, about 200,000 of them in California.

Becerra said the ruling could give Congress more leverage to try to get DACA renewed without burdening a proposal with compromises that Trump wants, such as a border wall or more border security.

Health and Welfare Reporter
Resistance State

Jan. 4, 2018 8:24 pm

Senate leader pushes end run on tax deduction limits

Taxes

State Senate President Pro Tem Kevin de León is proposing an end run for Californians to deduct the full value of their state and local taxes from their federal tax bills.

De León, a Los Angeles Democrat who is running for U.S. Senate, introduced SB 227, which would allow taxpayers to make charitable deductions to the state and receive a dollar-for-dollar tax credit on the full amount of their contribution.

How California policy affects you, straight to your inbox

Because charitable contributions are fully deductible, this would allow California taxpayers to sidestep the new $10,000 federal cap on state and local tax deductions.

“The Republican tax plan gives corporations and hedge-fund managers a trillion-dollar tax cut and expects California taxpayers to foot the bill,” de León said in announcing his legislation. “We won’t allow California residents to be the casualty of this disastrous tax scheme.” He noted that the bill is modeled after existing laws that provide tax credits on charitable donations made to state college affordability grants, such as the Cal Grant program.

His Republican counterparts are instead calling for a lowering California’s personal income tax rates.

Vince Fong on Twitter

Announcing my state tax cut proposal for CA middle class families and small businesses! This lowers the state’s tax burden without gimmicks. https://t.co/htdMGUsRfZ

Economy Reporter

You have Successfully Subscribed!

Pin It on Pinterest

Share This