Rep. Takano: GOP Tax Plan Transfers Wealth from Middle-Class Californians to Large Corporations

Washington, D.C. – Rep. Mark Takano (D-Calif.) issued the following statement after House Republicans released their tax plan, which includes large cuts in the corporate tax rate financed by raising taxes on hard-working Californians and many individuals already struggling under this economy.   

“The House Republican tax plan is a massive transfer of wealth from Californians and middle-class families to wealthy individuals and large corporations. Limiting deductions for state and local taxes, capping the mortgage interest deduction, and eliminating the student-loan-interest and medical-expense deductions are all policies that are specifically designed to hit Californians, who already contribute more to the federal government than they receive.

“The winners in this plan are the small percentage of people who already possess the largest share of our country’s wealth. Repealing the estate tax benefits only those with greater than $5.6 million in assets. Repealing the alternative minimum tax would allow wealthy individuals to avoid paying their fair share, including President Trump, who would save millions of dollars if this provision is passed into law. And permanently cutting the corporate tax rate to 20% from the current 35% would only benefit the corporations that are already enjoying record profits. 

“Shifting money from middle-class Californians to the wealthiest individuals and corporations in America is bad policy in any environment. But given the severe inequality in our country and the struggle many working families face every day, this plan is simply indefensible.

“I strongly oppose this legislation and don’t see how any California Republican could support it.”

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