The Trump tax plan is going to hammer taxpayers and small businesses in states like California and New York where curbs on so-called SALT deductions and mortgage interest deductions will likely lead to a net tax increase for many.
To try and mitigate – or even negate – its impact, New York Gov. Andrew Cuomo, California Gov. Jerry Brown and a handful of other governors have mused about workarounds that would help compensate taxpayers in the state for the changes.
Taking this one step further, Assemblymen Kevin McCarty of Sacramento and Phil Ting of San Francisco introduced Assembly Constitutional Amendment 22 Thursday, an amendment that would raise corporate taxes on California companies with revenues higher than $1 million. The increase would be for an amount equivalent to half what they received from the federal tax cut, according to the Los Angeles Times.
“I’ve seen enough billionaire justice in the first 11 months of this presidency to last my lifetime,” McCarty said in a statement. “At a time when reckless federal tax policy favors billionaires over middle-class workers, ACA 22 will help ensure that California can continue to grow and support middle-class families throughout the state.”
But with several high-profile state lawmakers recently felled by sexual harassment scandals, Democrats in the state assembly no longer hold a super majority.
Here’s the San Francisco Chronicle:
…Two Assembly Democrats, Matt Dababneh of Encino (Los Angeles County), and Raul Bocanegra of San Fernando Valley (Los Angeles County) amid sexual misconduct allegations. Another Assembly Democrat, Sebastian Ridley-Thomas of Los Angeles, resigned citing health issues. In the Senate, Democrat Tony Mendoza of Artesia (Los Angeles County) is taking a leave of absence pending an investigation into sexual misconduct allegations.
Because of this, McCarty and Ting are facing an uphill battle: The amendment would require a supermajority to pass. Then – assuming Gov. Jerry Brown signs the amendment – it would then need to be confirmed by voters in the fall.
But in a state like California, this definitely isn’t something to rule out entirely.
via RSS http://ift.tt/2Do8tpl Tyler Durden