Home » Santa Clarita News » Politics » Congressman Mike Garcia Introduces Bill To Repeal State, Local Tax Deduction Cap
Congressman Mike Garcia

Congressman Mike Garcia Introduces Bill To Repeal State, Local Tax Deduction Cap

Congressman Mike Garcia, R-Santa Clarita, introduced his first piece of legislation to the House of Representatives, the State and Local Tax (SALT) Fairness Act, which would remove the State and Local Tax deduction cap created in the Tax Cuts and Jobs Act of 2017.

Taxpayers who itemize deductions on their federal income tax returns are allowed to deduct state and local real estate and personal property taxes, as well as either income taxes or general sales taxes.

The Tax Cuts and Jobs Act of 2017 (TCJA) instituted a $10,000 cap on state and local tax deductions, which Garcia’s SALT Fairness Act, known formally as House Resolution (H.R.) 202, seeks to repeal.

“While I am a strong proponent of cutting taxes, the simple fact is we can’t wait any longer to act. The Tax Cuts and Jobs Act of 2017 made progress in many ways, but the cap it put on SALT deductions was not one of them,” wrote Garcia in a statement. “The fact is, Californians are being unfairly punished by this $10,000 cap on SALT deductions. California’s high state and local tax rates combined with this cap are taking their toll on hardworking men and women.”

The cap established by the TCJA is set to expire in 2025 under the terms of that legislation, Garcia’s H.R. 202 seeks to hasten its end.

The Tax Policy Center, a joint venture by the Brookings Institute and the Urban Institute offering independent analyses of current and longer-term tax issues, published a report which outlines the impact of SALT deductions.

Their analysis affirms that those in California that have previously claimed the deduction are disproportionately affected compared to other states, as California has a higher share of taxpayers claiming the deduction and average a higher deduction than more rural states.

“Although some taxpayers in every state and DC claim the deduction, taxpayers in states with a disproportionate share of high-income taxpayers and relatively high state and local taxes are more likely to claim the deduction,” the report reads.

Prior to the passage of the TCJA in 2017, roughly 30 percent of tax filers opted to itemize deductions on their federal income tax returns and virtually all who itemized claimed a deduction for state and local taxes paid, according to the report.

“High-income households were more likely than low- or moderate-income households to benefit from the SALT deduction,” reads the report.

Congressman Mike Garcia Introduces Bill To Repeal State, Local Tax Deduction Cap

(Chart courtesy of The Tax Policy Center)

The study found that tax filers with incomes above $100,000 accounted for 18 percent of all tax filers, but accounted for about 78 percent of the total dollar amount of SALT deductions reported with an average claim of $22,000.

“While this bill would greatly help Californians by removing the SALT deduction cap, I will continue to advocate for needed tax cuts,” wrote Garcia. “I am happy and willing to work with anyone from any political party to deliver tax relief for my constituents, and I will continue fighting for residents of CA-25 to be able to keep more of their hard-earned money.”


Sponsored Articles


Do you have a news tip? Call us at (661) 298-1220, or send an email to newstip@hometownstation.com. Don’t miss a thing. Get breaking KHTS Santa Clarita News Alerts delivered right to your inbox. Report a typo or error, email Corrections@hometownstation.com

KHTS FM 98.1 and AM 1220 is Santa Clarita’s only local radio station. KHTS mixes in a combination of news, traffic, sports, and features along with your favorite adult contemporary hits. Santa Clarita news and features are delivered throughout the day over our airwaves, on our website and through a variety of social media platforms. Our KHTS national award-winning daily news briefs are now read daily by 34,000+ residents. A vibrant member of the Santa Clarita community, the KHTS broadcast signal reaches all of the Santa Clarita Valley and parts of the high desert communities located in the Antelope Valley. The station streams its talk shows over the web, reaching a potentially worldwide audience. Follow @KHTSRadio on Facebook, Twitter, and Instagram.

KHTS AM 1220 & FM 98.1 - Santa Clarita Radio - Santa Clarita News

Congressman Mike Garcia Introduces Bill To Repeal State, Local Tax Deduction Cap

18 comments

  1. Garcia embraced the false and baseless accusations made by Trump regarding the free, fair and open election of President-elect Joseph R Biden. Garcia endorsed the failed coup against our democracy. Garcia has forfeited the right to serve the public. Garcia must RESIGN

    • How would you know they are baseless when no court actually heard a case and rejected cases not on the merits but on procedural crap? If all the evidence is never presented then folks like you never understand the magnitude of the fraud that occurred but those of us paying attention and actually looking at the facts do not agree that claims of massive fraud are “baseless”. As I understand it, Mike wanted the issue returned to the legislators of the states in question for them to sort out. If you are so sure there was no fraud, then why not examine all the claims and review available evidence and allow legislators to affirm their vote or rescind it before certifying? Biden lost and we know it and this is further dividing our country because our questions were never resolved. Now your team has begun the vendetta and purge which will not end well for your side. Thank you Congressman Garcia for doing your job and honoring your duties as outlined in our US Constitution despite the spiteful ugly comments from so many TDS sufferers.

      • Trump lost. Face it. It’s overwhelmingly obvious. Move on, enough already.

      • Don’t forget, Berta, Ohio totally crushed Alabama tonight.
        See- I’ve been listening to your news sources too!

      • Garcia barely won by only 350 votes in despite being in a DYNASTIC Republican District.

        Many dowballot Republicans won because they don’t have the Baggage Trump does.

        That’s not voter fraud It’s common sense. I don’t have TDS- I voted for some Republicans through honest ones.

      • Please provide examples of the “procedural crap” to which you are referring. The vast majority, if not all, the court filings were dismissed on merits. Even the legal team refused to claim “fraud” in the courts because they knew it could lead to their disbarment. Outside the courts, where you can basically say anything you want, is where they cried “fraud,” but not in the courts, which is where it was necessary IF their claims had any merit. Mike Garcia, by supporting the objection to the electoral college vote, is propagating a massive disinformation campaign that subverts the very democracy he fought for as a fighter pilot. It’s unacceptable. I do not expect he will resign, but he needs to be voted out as soon as possible. Perhaps one of the Amendments will be able to get the Trumpers in Congress out sooner than later. Here’s hoping!

  2. Don’t be fooled. This really only benefits those who pay more 10,000 in property taxes every year. Which is in most cases is those that have houses that cost 800,000+. You know who this Garcia is looking out for, he’s part of the Trump plan, protect the rich, screw everyone beneath.

    • Well you can see what is important to Mike Garcia right now! As an American who has lived in beautiful Santa Clarita for 32 years I can tell you one thing taxes are not the monster in the closet. Mike what are you doing ? Do you have any directions? Of what is going on in our country? A very concerned citizen.

    • This statement is not true. If you have a halfway decent job, its easy to get to that $10,000 number between property and state income tax. 400K house and I was squeezed by this

    • Not true I was stung by the salt tax separated from my wife I only entitled to 5000 I’m retired for 10 years force me to move out of the state it’s not a fair tax

  3. Notice how he frames this as though it will help us all when it is just more money to the wealthy.

    Going back to last Wednesday’s insurrection led (from behind) by Donald Trump:

    The more we learn and see with new videos being released it is clear this was a well organized domestic terrorism event designed to intimidate congress and to murder our leaders in congress including the vice president. White supremacist groups Q-anon, Proud Boys and other right-wing extremist groups as well as other supporters of the president were fueled by misinformation from Trump in a bid for him to maintain power . Those who abetted this coup attempt such as Ted Cruz, Josh Hawley and our own Mike Garcia also need to be held accountable. It is sad that so many Americans were and still are taken in by this misinformation that Trump won the election and it was being stolen that they became a part of this attempt to overthrow democracy.

    Think about this:
    “Those who can make you believe absurdities can make you commit atrocities”
    -Voltaire

  4. So Mike what will you do about the loss of revenue to the Feds? Could only imagine what programs to cut back or eliminate. Maybe raise the tax on middle and lower incomes.

  5. Hey Mike,
    14th Amendment: Section 3. RESIGN NOW

  6. You hit the nail perfectly!

  7. Introducing a bill like this may gain favor with voters but it cannot pass with the overwhelming democratically controlled state legislature. They never lower or eliminate taxes.

Leave a Reply

Your email address will not be published. Required fields are marked *

*

This site uses Akismet to reduce spam. Learn how your comment data is processed.

About Wyatt Smith

Wyatt was born and raised in Santa Clarita. After graduating from Hart High School in 2012, he continued his studies at the University of California, Santa Barbara, where he earned a degree in applied statistics. After a year and a half working in the digital advertising industry, Wyatt left his previous field of work to pursue his interest in writing.