House Republicans have created a tax reform bill that would limit or end some of the most popular deduction taxpayers use to minimize how much money is owed. Eliminating deductions like interest paid on college loans, alimony, and write-offs on state income taxes, particularly in high-cost and taxed areas like California, are not going to be well received.
In addition to ending the write-offs of state and local income taxes, deductions for second homes would no longer be allowed and property tax deductions would be capped at $10,000. It’s good for corporations as it will immediately slash the corporate tax rate to 20% from 35% and streamline individual rates from seven brackets into four.
Political expert and USC Annenberg School for Communication professor Dan Schnur says the choice comes down to members siding with their leaders and giving the president a win or their constituents and possibly depriving President Trump of a major legislative victory.
“It looks like the national party leaders want to pay for the tax cuts and to do that, they’re going to harm a lot of California voters. California Congressman Darrell Issa is the first member of the California delegation to come out against it. It’s a tough decision for the rest of them moving forward.
Schnur was a guest on McIntyre in the Morning.
Sharon Reardon, KABC News