Federal Tax Reform
The Tax Cuts and Jobs Act, the tax reform bill introduced in the House last week, is the first step in the long overdue effort to create a simpler, fairer tax code that boosts economic growth and job creation. The Howard Jarvis Taxpayers Association is closely watching this legislation with a particular focus on its impact on individual California taxpayers.
While the vast majority of American taxpayers would benefit from this tax reform proposal, the elimination of the deduction for state and local taxes could potentially result in higher taxes for some Californians. This is because California has the nation’s highest top marginal tax rate, 13.3 percent on taxable income of $1 million or more. But the high state income tax hits nearly everyone—income over $51,530 is taxed at 9.3% for single filers, and even income over $18,610 is slammed with a state income tax of 4 percent.
HJTA believes the state’s high income tax hurts California families and damages the prospects for job creation relative to other states, like Texas, Florida and Nevada, which have no state income tax at all.
We hope California lawmakers take a hard look at the state’s tax structure and consider a tax reform of their own.
For more information on the House bill: https://waysandmeans.house.
Follow HJTA on Twitter and Facebook for updates on changes to this fast-moving legislation.
Twitter | Facebook | Sign up for email updates