In his CALmatters column, Dan Walters details the disagreements sparked by the tax reform bill presented in the House last week. In particular, the proposed removal of the deduction for state and local taxes (SALT) has been especially contentious, even igniting a row between state legislators and Congressional representatives from high-tax states.
Governors Jerry Brown and Andrew Cuomo of California and New York participated in a joint electronic news conference decrying the potential elimination, with Cuomo claiming the plan “[uses] a handful of states to finance the tax cuts for their states.”
Congressman Darrel Issa (R-Vista), who has since backed down from his earlier support of the SALT elimination, issued a firm response to Brown: “I recognize the role of the state and local tax deduction to reduce the tax burden on many Californians, but let’s be clear: It has only become of such importance as a direct result of the tremendous weight that your misguided policies have put on California taxpayers.”
Now, Issa claims that he cannot support tax reform as it stands because his constituents, due to the SALT deduction, would be paying more in taxes than they are now.
This sideshow adds yet another layer of complexity to an issue Walters characterizes as highly complicated. In his view, tax reform discussions often entail these sorts of conflicting opinions that each hold some truth.
In any case, Walters seems to foreshadow more convolution and political posturing to come.
To get his take, read more here: Commentary: Republican Tax Plan Would Hit California Hard