Saturday, April 08, 2017

Will Congress kill a $101-billion tax break for Californians?

The L.A. Times reports:
For California, it’s the $101-billion question: Will Congress eliminate a major tax break that benefits state residents more than those anywhere else in the country?

A plan by House Republicans calls for axing the federal deduction for state and local taxes. The provision allowed Californians to reduce their taxable income by that amount in 2014, according to an analysis by the nonpartisan Tax Foundation.

That figure was one-fifth of the total value of the deduction nationwide.

California’s pain may be Republicans’ gain, though, as lawmakers and the White House turn to tax reform after the failed attempt to repeal and replace President Obama’s healthcare law.

Do California progressive believe taxes affect economic behavior?