The tax reform legislation which is being formulated in GOP-led Congress has serious implications for Californians, who pay some of the highest income and real estate taxes in the nation.
Some legislators from “red” states may be inclined to punish California and other big tax states by eliminating the deductions for state income tax and property taxes.
This could accelerate the flight of big earners and businesses from these states while seriously impacting state government budgets. But the biggest impact would be felt by younger middle-income homeowners who spend a high percentage of their income on housing costs.
Many struggled to purchase their first homes, and high home prices paired with high property taxes are a strain on their budgets. Taking the state income and property tax deduction from these residents would lead to financial instability and possibly another housing crisis.
Our elected U.S. representative, Steve Knight, plus other California Republicans, must fight to derail this plan. To do otherwise will risk not only the financial health of their constituents, but also their own jobs.