About a million Californians can expect to pay their share of a $12 billion tax hike, thanks to the unpopular Republican tax bill championed by Congressman Steve Knight (R-Palmdale). That’s based on an analysis from California’s Franchise Tax Board.
Knight embraced the tax bill despite knowing provisions in the bill would raise taxes on Californians. One of his Republican colleagues in Congress said, “I didn’t come to Washington to raise taxes on my constituents and I do not plan to start today.”
But Knight sided with Trump and Speaker Paul Ryan (R-WI) when he voted for the bill.
With Knight’s support, the “new law caps a deduction they have been able to take for paying their state and local taxes,” according to the Sacramento Bee.
While wealthy Californians will be on the hook for the majority of the tax hikes, working-class Californians could very well see an increase.
“About 751,000 households with incomes under $250,000 probably will owe more tax,” reports the Sacramento Bee. “All together, they’ll owe an extra $1.1 billion.”
Meanwhile, Knight calls the national debt “a blatant act of generational theft,” but that didn’t stop him from voting to add nearly $2 trillion to the federal deficit — in the same bill that raises taxes on Californians.
While many will be stuck with higher taxes, and the next generation will be forced to deal with Knight’s fiscal irresponsibility, there are some factions that are benefitting from the tax bill: wealthy Wall Street investors.
“So far, that real money is by far mostly going to shareholders and not workers,” says Bloomberg. Much of that money is funneled through stock buybacks and dividends, which could reach $1 trillion this year, an all-time record.
“Critics say the return of capital to shareholders is a boon for Wall Street, but a slight to Main Street,” reports CNN. “Many argue the extra wealth should instead be invested to create jobs and boost wages.”
This year, Californians are saddled with an additional $12 billion in taxes, while rich Wall Street tycoons are awash in congressional kickbacks financed by in part by exploding the national debt.
And Knight continues to brag about the role he played in this scheme.