Bill Text: CA SJR18 | 2017-2018 | Regular Session | Introduced
Bill Title: Federal Tax Cuts and Jobs Act: repeal.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2018-02-08 - Re-referred to Com. on GOV. & F. [SJR18 Detail]
Download: California-2017-SJR18-Introduced.html
CALIFORNIA LEGISLATURE—
2017–2018 REGULAR SESSION
| Senate Joint Resolution | No. 18 |
| Introduced by Senator Hueso |
January 31, 2018 |
Relative to the federal Tax Cuts and Jobs Act.
LEGISLATIVE COUNSEL'S DIGEST
SJR 18, as introduced, Hueso.
Federal Tax Cuts and Jobs Act: repeal.
This measure would respectfully urge the Congress of the United States to act now to repeal the Tax Cuts and Jobs Act.
Digest Key
Fiscal Committee: NOBill Text
WHEREAS, At a time when Californians are struggling with the rising costs of living, parents are grappling with the high costs of childcare, and individuals finally have the health care coverage they need, Republicans in Congress have passed a tax overhaul, commonly referred to as the Tax Cuts and Jobs Act, that disproportionally favors the wealthiest Americans and corporations, and in the long run hurts working class Americans; and
WHEREAS, Economists and nonpartisan think tanks who have analyzed the federal Tax Cuts and Jobs Act have come to the same conclusion: it will provide the greatest benefits to those who have the greatest wealth; and
WHEREAS, The Tax Cuts and Jobs Act will lead the nation into a $1.5 trillion deficit, more than half of the Golden State’s GDP, by permanently cutting the corporate tax rate from a progressive 35 percent to a flat 21 percent. It will burden working class families by eliminating the tax exemption for children; and
WHEREAS, The Tax Cuts and Jobs Act will significantly hurt blue states like California, where local governments rely on state taxes and taxpayers rely on state and local tax deductions to reduce their costs of living. In 2015, 6.1 million California residents deducted an average of $18,438. California taxpayers’ deductions of state and local taxes will now be capped at $10,000, a significant blow to residents who will be taxed twice; and
WHEREAS, The Tax Cuts and Jobs Act is a bad deal for homeowners, who will be faced with a lower mortgage interest deduction. Californians will only be able to deduct up to $750,000 in mortgage interest paid, a sharp reduction from what they could deduct before; and
WHEREAS, This tax reform will have detrimental effects on individuals who have high health care costs because it reduces the amount of medical expenses taxpayers can deduct and repeals the federal Patient Protection and Affordable Care Act’s individual mandate. Experts estimate that over the next 10 years, 13 million people will lose their health care coverage. It will cause premiums to rise and make it more difficult for individuals to purchase the health care they need; and
WHEREAS, The Tax Cuts and Jobs Act will make California an even greater donor state. Compared to residents in other states, Californians will now receive even less of a return to dollar from federal government spending. Compared to other states, California receives 96 cents to every dollar, which translates to a $17 billion negative balance. Meanwhile, other states receive more than $2 in federal return, and continue to be supported by donor states like California; and
WHEREAS, This tax overhaul will reduce funding for popular affordable housing programs, which last year helped fund over 20,000 affordable housing units. It will make housing more expensive for working families, without providing an alternative solution; and
WHEREAS, The Tax Cuts and Jobs Act provides large tax breaks for the wealthiest Americans by doubling the estate tax exemption for those who inherit estates. These breaks will only benefit a very small population of the wealthiest estate owners. It favors those who already have tremendous wealth by providing those households with higher incomes and larger than average tax cuts. Compared to 2017, 5 percent of taxpayers would pay more in 2018, 9 percent in 2025, and 53 percent in 2027; and
WHEREAS, Analysts overwhelmingly agree that the Tax Cuts and Jobs Act favors the wealthiest and provides little to no relief for the average American. By 2018, the top 95th to 99th percentile will benefit from an average tax cut of $13,500 or more and the top 1 percent will benefit from a tax cut of $51,000; and
WHEREAS, The evidence is clear—this tax reform is a big giveaway to the wealthy and hurts working class Americans; now, therefore, be it
Resolved by the Senate and the Assembly of the State of California, jointly, That the Legislature respectfully urges the Congress of the United States to act now to repeal the Tax Cuts and Jobs Act; and be it further
Resolved, That the Secretary of the Senate transmit copies of this resolution to the President and Vice President of the United States, to the Speaker of the House of Representatives, to the Majority Leader of the Senate, to each Senator and Representative from California in the Congress of the United States, and to the author for appropriate distribution.
