There are easier ways to help state taxpayers after federal tax reform

By Jon Coupal | With great weeping and gnashing of teeth, California Democrats have excoriated the Republican-controlled Congress and President Trump for the passage of the recently enacted tax reform measure.

A weekly column by Jon CoupalYou wouldn’t know it from mainstream media rhetoric, but most Californians will be better off from the legislation due mostly to the reduced tax rates and a near doubling of the standard deduction. Nonetheless, some higher-wealth citizens might pay slightly more because of the $10,000 cap on state and local tax deductions. This is particularly true for those who pay high income and property taxes.

Whether it’s a legitimate effort to help those few Californians who may be disadvantaged by the new federal law or just another scheme to demonstrate anti-Trump street cred, Democrats are trying to find ways to neutralize or counter the higher taxes on the state’s well-to-do. (And here we thought Republicans were the party of the rich).

One strategy is to find a way to convert the deduction that Californians currently take for state and local taxes into some other deduction recognized by the IRS. Specifically, and a proposal just announced by California state Senate Leader Kevin de León, is to allow tax filers to make “charitable contributions” to the state.

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