Editorial: Democrats are pushing the right fix to a Trump tax law – San Francisco Chronicle

California is a near daily punching bag for White House, so it figures that the largest tax overhaul in decades pushed through by President Trump would take aim at this deep blue state. But Democrats are now working to rid the rules of a particularly galling feature targeting Golden State residents.

By a slim margin Democrats in the House voted to remove a cap on deductions based on state and local taxes collectively known as SALT. Under the Trump rules, a taxpayer can deduct up to $10,000 in such levies, a critically low amount in high tax states such as this one and New York, New Jersey and Illinois. Guess what? These state also happen to reliably vote Democratic, meaning the lower number is a slap at Trump foes.

Why it matters here should be clear. Housing prices mean new buyers have high property tax bills along with state incomes taxes. Holding these SALT levies to $10,000 means that taxpayers are denied thousands more in deductions they took in years past. A state report last year estimated that Californians will pay $12 billion more in taxes.

What the House Democrats did is to undo the cap but with an addition. The super-wealthy earning $100 million or more wont be in line for sky-high deductions as before.

The vote wasnt an easy one. Numerous study groups say that the deductions are a gift to upper income groups who are more likely to have bigger property and sales tax bills. That worried some Democrats and led progressive members to oppose the changes. But the Trump deduction cap harms many more than a plush segment of society.

In an opinion piece in the Times of San Diego, local Rep. Mike Levin, a Democrat, noted that 58,000 people in his coastal district making less than $100,000 per year will lose out due to the SALT deduction changes. Home sales may be harmed if buyers cant look forward to tax benefits that make a buy pencil out.

The future of the House measure is dim given the GOP majority in the Senate. But theres every reason to demand changes in politically contrived tax law.

This commentary is from The Chronicles editorial board. We invite you to express your views in a letter to the editor. Please submit your letter via our online form: SFChronicle.com/letters.

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Editorial: Democrats are pushing the right fix to a Trump tax law - San Francisco Chronicle