(Murrieta, CA) – In response to the tax plan crafted by Congressional Republicans and the President of the United States that was released today, Senator Jeff Stone (R-Riverside County) issued the following statement:
“The tax plan released today by President Trump and Congressional Republicans appears to be a significant first step in reforming an overly-complicated tax system, and I am enthusiastic about the opportunities that exist to make sure hard-working Americans are able to keep more of what they earn.
“The plan as explained simplifies the tax rates by creating three brackets instead of the existing seven and eliminates the Alternative Minimum Tax for individual taxpayers – a tax that has punished millions of middle-class taxpayers because of ‘bracket creep’ over the past several years.
“The most controversial part of the plan – namely, the elimination of the federal deduction of state and local taxes on federal returns – could more accurately be seen as an incentive to high-tax states like California to lower its state tax burden to remain competitive with other states like Nevada, Florida and Texas.
“For years, the Democrats who raise our taxes in California have said ‘don’t worry … the increase won’t matter all that much because the tax increases are deductible.’ The Congressional plan seems to finally force states to be transparent about how much they actually tax their own residents.
“Further, the middle-class families who can’t afford to buy a home here in California will be greatly helped under the tax plan released today by increasing the standard deduction to $24,000 for a married couple filing jointly and $12,000 for an individual. This one increase alone could more than make up for the loss of deductibility of state taxes.
“I look forward to working with Democrats here in Sacramento next year to figure out how we can better have state tax law conform to a federal tax system that seems properly aimed at letting more people keep more of what they earn.”