Bill Designed to Combat Trump’s Tax Plan Passed by California Lawmakers
State legislators approved a measure Friday that aims to help California taxpayers who face larger federal tax payments following the Trump administration’s recent overhaul.
The bill would allow taxpayers to claim a charitable deduction for state tax payments above the $10,000 limit set in the tax cuts passed by Congress last year. But the Internal Revenue Service announced last week that it believed such plans, which other states have passed, were tax dodges, and is working to pass a rule that would nullify them by the end of the year.
The author of the bill, state Sen. Kevin de León (D-Los Angeles), said the passage of the measure was worth it for state taxpayers, even though it would lead to litigation between the state and federal government.
“We will move forward with this measure, but it is an unfortunate reality that we will see them in court,” De León said.
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