In summary
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.
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.
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.
Announcing my state tax cut proposal for CA middle class families and small businesses! This lowers the state’s tax burden without gimmicks. pic.twitter.com/htdMGUsRfZ
— Vince Fong (@vfong) January 4, 2018