Los Angeles homeowners will face thousands of dollars in higher taxes this year, and much more in the years to come, thanks to Republicans like Rep. Steve Knight. Knight, whose district includes the northern part of Los Angeles County, was one of the key votes propelling the tax bill into law.
According to an analysis by Apartment List, California homeowners “will see some of the biggest losses.”
Los Angeles homeowners face a loss of housing tax deductions totaling $76,000 over the course of a 30-year mortgage. And in 2018 alone, individual L.A. homeowners face a loss of up to $4,300.
The higher taxes are due to changes in the new law, including a cap on deductions for state and local taxes, and one on the the mortgage interest deduction. The analysis compares the new law to the previous tax code, assuming a married couple, filing jointly, with one dependent child.
The higher tax bill is especially stinging, as Knight promised his “number one priority” in the tax bill would be preventing exactly these types of tax increases for constituents. Even other Republicans said, “My constituents don’t deserve a tax increase.”
Knight, however, would rather listen to the demands of Wisconsin’s Paul Ryan than to the pleas of his own constituents, who were vehemently opposed to the tax bill. Neither the voices of constituents, nor his own pledge, prevented Knight from voting for this harmful tax bill.
It is not only L.A.-area homeowners who will face higher taxes. The median household in California will face a loss of $3,200 this year, according to Apartment List.
The increases are in line with previous economic analyses, which concluded California would face much harsher consequences than other states. The median homeowners in Georgia, Alabama, Ohio, and Kentucky and several other states will not face any increased taxes due to these provisions.
As the Institute on Taxation and Economic Policy stated, the bill will “substantially increase the share of total federal personal income taxes” paid by Californians.
While many Californians will be stuck with higher taxes, Knight cashed a campaign check just a week before his final vote on the tax bill from a group that spent millions trying to promote the bill.
It is not hard to see where Knight’s priorities lie.