California lawmakers are targeting the expected windfall that companies in the state would see under the federal tax overhaul with a bill that would require businesses to turn over half to the state.
A proposed Assembly Constitutional Amendment by Assemblymen Kevin McCarty, D-Sacramento, and Phil Ting, D-San Francisco, would create a tax surcharge on California companies making more than $1 million so that half of their federal tax cut would instead go to programs that benefit low-income and middle-class families.
Trump – Tax – Reform – Plan – Nothing
“Trump’s tax reform plan was nothing more than a middle-class tax increase,” Ting said in a statement. “It is unconscionable to force working families to pay the price for tax breaks and loopholes benefiting corporations and wealthy individuals. This bill will help blunt the impact of the federal tax plan on everyday Californians by protecting funding for education, affordable health care, and other core priorities.”
As a constitutional amendment, the bill would require approval from two-thirds of the Legislature to pass, a difficult hurdle now that Democrats have lost their supermajority. If passed and signed by Gov. Jerry Brown, it would then go to voters for final approval.
In order to pass, the bill needs approval from two-thirds of the California Legislature – from which the Democrats have recently lost their supermajority, the Chronicle reported. From there, the bill would be signed by Gov. Jerry Brown before going to the voters for final approval.
President Donald J. Trump’s Tax Cuts Are Delivering For Hardworking Americans and Our Manufacturers.
- Nationwide, more than 2 million workers have had a “Trump Bonus” or “Trump Pay Raise” announced as a direct result of the Tax Cuts and Jobs Act.
- President Trump’s tax reforms provide $3.2 trillion in net tax cuts to American families, with every income group seeing a tax cut.
- Middle-income families are no longer forced onto the Alternative Minimum Tax, with the income phase-out level for exemptions increasing to $500,000 for single households, and $1 million for married couples.
- Popular itemized deductions have been retained, such as the mortgage interest deduction for newly-purchased homes of up to $750,000, and the deduction for charitable giving.
- Important benefits have been left intact, including the EITC for low-income workers, the deduction for teachers’ out-of-pocket classroom expenses, and the adoption expense tax credit.