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California Governor Jerry Brown warned GOP of voters’ revolt in 2018 and 2020 elections because of its tax reform bill. In an interview with Bloomberg, Gov. Brown said the middle class will not benefit from GOP tax reform bill. He said the legislation, which is under deliberations, prioritized the interests of corporations and the wealthy. The governor also emphasized that the bill will increase the national debt. Gov. Brown said, “Who’s to say that the rich need more money right now? If you give them more money, what are they going to do with it? Are they going to put it to work in Michigan and Ohio and Pennsylvania, all the people that voted for Trump? I think there’s going to be a rude awakening when people wake up and say they were misled.” 

GOP tax reform bill a step closer to Trump’s desk

He made the statement a day after the House of Representatives passed the Tax Cuts and Jobs Act last week. The legislation will reduce the corporate tax rate to 20% and lower the tax rates for many individuals. It doubles the standard deduction for individuals and married couples. The bill caps the state and local tax (SALT) deductions to $10,000. Last week, the Senate Finance Committee also approved its modified version of the GOP tax reform bill. Under the Senate version, the legislation will temporarily cut taxes for individuals until 2025. It will permanently lower the corporate tax rate to 20%. The bill will also repeal the SALT deductions and the individual mandate under Obamacare. The leaders of the Senate plans to bring the bill to the floor for debate and vote after Thanksgiving. Based on the latest analysis of the Joint Committee on Taxation (JCT), families earning $30,000 annually will see tax increases in 2021. Families with an annual income of $75,000 will experience tax hikes in 2017. However, corporations will continue to enjoy guaranteed tax cuts. Additionally, the JCT said eliminating Obamacare’s individual mandate will leave 13 million Americans without health insurance.

California and three other high-tax States will suffer the most

High-tax States including California, New York, New Jersey, and Maryland will suffer the most under the GOP tax reform bill. Several studies showed that taxpayers in these states will be hit with huge tax increases because the legislation eliminates or limits their ability to deduct their state and local property taxes. It also limits their ability. In 2017 alone, Californians will suffer the largest net tax increase of $12.1 billion, according to the Institute of Taxation and Economic Policy (ITEP).