Written by Michael Palomba
Rep. Mike Levin (D-CA) recently wrote an op-ed slamming Republicans for capping state and local tax deductions, also known as SALT deductions. Below is an excerpt from Levin’s piece.
In 2017, many families in the North County San Diego and South Orange County communities I represent took an unexpected, unfair tax hit. The financial plans they had made — like whether to buy a new home — were upturned when Washington Republicans passed a tax bill that capped the State and Local Tax deduction, known informally as SALT.
Suddenly, these families lost out on thousands of dollars in savings on federal taxes that they used to receive before the SALT cap went into effect, effectively paying a massive penalty simply because they live and work in a high-cost area with higher taxes.
What Levin fails to mention in his op-ed is the reason this deduction was so important, to some, in the first place: high state and local taxes.
He even mentions those who live in “high-cost areas with higher taxes.” And that’s the problem right there. These individuals would not have to rely on the federal government to reimburse them if their state and local governments did not tax them so much.
California has the highest marginal tax rate in the country at a staggering 13.3%. In addition, we have the highest state sales tax in the country at 7.3%. Furthermore, after the recent gas tax hike, California also has the second-highest gas tax in the nation.
Republicans believe that low taxes are the way to go because it gives individuals as much control over their financials as possible. When you don’t have to pay ridiculously high taxes, you have much more financial flexibility and control over your own life.
Democrats, on the other hand, believe that people should rely on the government, and are generally in favor of higher taxes and more government control.
So the problem here is not that Republicans put a cap on SALT deductions, but that California Democrats have an obsession with taxes. They will tax anything and everything they can.
And now that the federal government isn’t picking up the tab, they need a scapegoat. Rep. Levin is simply trying to push the blame away from his tax-hungry policies and on to Republicans’ tax reform. However, this is not a wise move.
Earlier this week, Gov. Gavin Newsom tried to do the same thing with regard to California’s growing homelessness problem.
In spin room at #DemDebate, @GavinNewsom slams Trump Administration and HUD for doing “nothing” on “housing first,” the priority to solve homelessness. pic.twitter.com/AQXRHUwZys
— Carla ‘Bluechecked’ Marinucci (@cmarinucci) December 20, 2019
However, President Trump quickly fired back, warning Newsom that if he doesn’t get the state’s act together, the federal government will intervene.
Governor Gavin N has done a really bad job on taking care of the homeless population in California. If he can’t fix the problem, the Federal Govt. will get involved! https://t.co/2z8zM37PUA
— Donald J. Trump (@realDonaldTrump) December 25, 2019
Levin and Newsom should be working to lower the taxes of Californians, rather than playing the blame game. Hopefully, working Californians will tell them how they feel about California’s grotesque tax structure with their votes in 2020.
