As Republicans in the House and Senate frantically try to reconcile the two different versions of their tax bill, they are still trying to sell it as relief for the middle class. But for Californians, it is nothing of the sort.
In fact, a study from the Institute on Taxation and Economic Policy reveals that by 2027, the Senate GOP tax bill would greatly impact the state’s working poor and middle class, with the bottom 60 percent of income earners in California — anyone making less than $109,160 per year — paying over $2.8 billion more.
The reason the bill becomes a middle-class tax increase is that the tax cuts for workers are temporary, while the corporate tax cuts are permanent. But even before the tax cuts for workers expire, many working Californians will see their taxes go up, while many others will see little change.
The House bill — which eleven GOP congressmen in California, including Rep. Steve Knight of Palmdale, voted for — increased taxes on roughly one in four Californians making under $109,160 and gave the vast majority of the tax breaks to wealthy individuals and corporations.
Seemingly by design, California is hit particularly hard in both versions of the bill.
Both House and Senate Republicans want to largely eliminate the state and local tax deduction, which would double-tax money that already went to California’s state income tax. Additionally, the bill repeals tax deductions for losses from earthquakes and wildfires, while preserving deductions for losses from hurricanes — a policy that seems almost tailor-made to raise taxes on California disaster victims specifically.
It is abundantly clear that any plan concocted by Republicans will be a raw deal for working families in California. Republicans representing the Golden State need to figure out whether they are in Washington for their constituents, or their donors.