Calif Dem senator plots way to get around cap in Trump’s tax reform bill

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California Senate President Pro Tem Kevin de León (D-Los Angeles) is leading a scheme to re-classify state taxes as charitable contributions in order to get around a cap included in the new GOP tax reform bill. With the new tax law limiting state and local tax (SALT) deductions at $10,000, California is seeking new ways to avoid paying their full tax.

Even as California Democrats decry policies they say keep money in the hands of wealthy Americans while overburdening middle-and lower-income citizens, they are crying out for protections for their wealthiest residents. By capping SALT deductibility, the new law will hit them hardest.

Breitbart reports:

California is the most populous state, but only has the fourth-highest percentage of residents that claim SALT deduction, at 34.5 percent. The Golden State’s “per-filer” average SALT deduction is a middle-class $12,682. But due to rich coastal and multi-property owners, California has the highest “per claimant” SALT deduction of any state, at $36,802. For California’s rich, tax reform means an effective increase in state taxes.

Gov. Jerry Brown called limiting SALT deductibility to about an upper middle-class income level as “evil in the extreme,” and hissed at Trump’s Republican allies for “acting like a bunch of Mafia thugs.”

 

A fierce opponent of President Donald J. Trump’s tax reform, de León vows to introduce legislation that would allow California’s highest income earners to bi-pass the $10,000 SALT limit and to continue deducting 100 percent of state and local taxes by renaming them “charitable contributions.”  He will begin the process as early as next week.

It is not clear how effective the California Democrat senator’s scheme will be.

De León, who also introduced Senate Bill 54 to the state, said, “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 Bill 54 essentially made California a “sanctuary state.” The bill was passed last year and became effective on January 1, 2018. It prohibits police and sheriffs from asking about a person’s immigration’s status, detaining people for U.S. Immigration and Customs Enforcement “hold” requests and participating in any program that deputizes police as immigration agents, according to the LA Times.

A look at de León’s Twitter feed shows his aggressive stance on immigration, the economy, President Trump and the environment. In October, he launched a bid to challenge fellow Democrat Dianne Feinstein for her U.S. Senate seat, so that he can more aggressively fight against President Trump’s conservative agenda.

One of de León’s biggest gripes with the president is immigration, as the state senator has declared, “I can tell you half of my family would be eligible for deportation under [President Donald Trump’s] executive order, because if they got a false Social Security card, if they got a false identification, if they got a false driver’s license prior to us passing AB60, if they got a false green card, and anyone who has family members, you know, who are undocumented knows that almost entirely everybody has secured some sort of false identification. That’s what you need to survive, to work. They are eligible for massive deportation.”

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