02/11/2019 | Press release | Distributed by Public on 02/11/2019 19:15
Washington-Senator Dianne Feinstein (D-Calif.) today released the following statement on the Stop the Attacks on Local Taxpayers Act, a bill she is cosponsoring to repeal the arbitrary cap placed on state and local tax deductions that went into effect last year to help pay for President Trump's tax plan:
'As middle-class families file their tax returns, the reality of President Trump's tax cuts are starting to sink in. More and more hardworking Americans are realizing their taxes actually went up so that wealthy corporations and the richest Americans could receive a tax cut.
'In 2017, to help pay for their tax bill, Republicans wiped out or capped many popular deductions for middle-class families. The loss of those deductions is now hurting many Americans filing for the first time under the new system.
'Few places are feeling that pain more than California. Due to the cap on state and local taxes, an estimated 134,000 Californian households are being hit with a larger tax bill than the previous year under the president's plan. California families who itemized their deductions claimed an average state and local tax deduction of $18,500 prior to the new tax law. That amount is now capped at $10,000 under the president's plan.
'Californians shouldn't be taxed twice on the same income. Our commonsense legislation would fix that mistake by removing the cap for state and local taxes and restoring the pre-Trump tax rate for the top income bracket.
'Middle-class Americans were sold a false bill of goods. They were promised a fairer tax system. Instead, they're watching the rich get richer while they get stuck with the bill.'