California Democratic Leaders: GOP Tax Plan is Devastating

alifornia Democratic Leaders Blast GOP Tax Plan

The Democratic leaders in California rejected the GOP tax plan introduced by the House Ways and Means Committee on Thursday. They said it is bad for California and the entire Country.

In separate statements, Senator Dianne Feinstein and House Minority Leader Nancy Pelosi said the Republic tax proposal is a gift to corporations and to the wealthy. California Governor Gerry Brown shared Pelosi and Feinstein’s view on the issue.

Under the GOP tax plan, the corporate tax rate will decline from 35% to 25%. The tax rate for pass-through businesses (owners file taxes as individuals) will drop to 25% from the current 39.6%. The tax rate is applied on 30% of their business income.

Additionally, the bill puts a limit on the popular state and local tax (SALT) deduction to $10,000 a year. It also puts a cap on home mortgage interest deduction for exiting mortgages and newly-purchased homes. The bill allows taxpayers to claim interest paid on home mortgage debt of $500,000, down from the current $1 million. The legislation will no longer allow deductions for second homes.