Our local U.S. 25th District Representative, Steve Knight, R-Palmdale, is running slick TV ads in support of the House tax reform plan and falsely claiming that he is working hard for his constituents to reduce their taxes.
In addition, he states that Californians will receive an average $3,000 income tax reduction, which is factually incorrect, according to almost all tax experts.
The G.O.P. tax reform plans that recently passed the House and are pending in the Senate are actually an income-redistribution action, which at one time was a big no-no for the Republican Party. In this case, 80 percent of the tax cut benefit will go to high-income filers and corporations.
Another income-redistribution aspect of the proposed legislation is to increase taxes on residents of high-tax states like California and New York, especially those who own homes and pay high state taxes and property taxes.
The tax benefits transfer to lower-income residents of “red states” who propelled Donald Trump into office. In most cases, highly taxed states receive significantly less return of federal benefits than they pay into the Treasury.
Knight is acting against the interests of his constituency, many of whom will be shocked by their federal income tax increases due to elimination (or restriction) of the deductions for state income taxes, property taxes, and mortgage interest. Some low-income Californians may indeed benefit, assuming that they do not own a home and use the standard deduction. But these individuals are not typical Republican voters. And if they were receiving health care benefits from MediCal, thanks to the expansion of Medicaid under the ACA (Obamacare), they too will be adversely affected by the G.O.P. health care play that Knight voted for.
Income redistribution to residents of “red states,’ corporations, and high-income filers is just bad policy and politics for winning re-election in 2018 for the 25th District seat in Congress.
Hopefully, Steve Knight will begin to represent his Santa Clarita and Antelope valley constituents, rather than the big money out-of-state benefactors who are paying for his misleading TV ads.