The GOP Tax Bill Would Destroy the Housing Efforts in California

GOP Tax Bill

With Thanksgiving and Black Friday behind us, pockets of American citizens are likely to be suffering from the onslaught of the holiday. Although the tax season feels to be so far away, residents of California are likely not have any dispensable income for the coming holidays if the tax bill is enacted into law. If you don’t have any surplus in your budget, this plan asks you to pay more so that oil companies and big corporations can pay less.

Presidents George W. Bush and Ronald Reagan offered tax cuts to the wealthy in a bid to promote economic growth. These two presidents subscribed to the old Republican philosophy of giving more and more to those with the most and hoping that prosperity trickles downwards to everyone else. Although these policies were instrumental in ending two recessions, they were also the building blocks for unprecedented economic inequality which has widened ever since.

The federal tax bill sponsored by the Republican Party uses the same logic of Reaganomics rather than advocating for policies that would help close the wealth gap. This tax bill ignored recommendations that were made by globally renowned economists and even the International Monetary Fund that when the wealthy and fortune 500 companies make more, economic growth is retarded. As of today, unemployment is at a 25-year low, and the US economy is growing.

Legislation that proposes to give tax cuts to the billionaires and fortune 500 companies to stimulate economic growth becomes obsolete. In the state of California, taxes are meant to increases by over $ 100 for all the working Americans who earn less than $180,000 annually. This was according to a report released by the Center on Budget and Policy Priorities. The elimination of the local and state income tax credit will contribute to more taxes for the middle-income earner if the bill becomes law.

The Minority leader in the House argued that the tax legislation would be devastating for the average American families. One of the proposed benefits of the bill is to eliminate the state tax charged on inherited property. For the majority of Californians who don’t own a home, affordable housing is a debate that has sparked controversy over the recent past. Governor Jerry Brown assented more than 12 legislations into law which are focused on streamlining the housing industry in California. However, this gains could be undercut by the federal Housing Tax Credit Program and the private activity bonds. The exodus of Californians to states with more affordable housing programs is set to be on the rise.