Washington—Senator Dianne Feinstein (D-Calif.) today released the following statement after House Republicans unveiled their tax cut bill:
“It’s unbelievable the lengths that Republicans will go to give the richest Americans a huge tax cut. The Republican tax bill will likely increase the deficit by $1.5 trillion and slash key deductions and credits for working families in order to give the richest Americans and large companies a tax cut.
“I’m particularly concerned about limitations on essential tax provisions that benefit working families and the middle class. This bill would harm families and is a non-starter for me, and I’ll fight to defeat it in the Senate.”
Mortgage Interest Deduction
The Republican bill caps the mortgage interest deduction for new home purchases at $500,000. All told, 18 counties in California have median home prices above $500,000 including Alameda, Contra Costa, Los Angeles, Marin, Mono, Monterey, Napa, Orange, San Benito, San Diego, San Francisco, San Luis Obispo, San Mateo, Santa Barbara, Santa Clara, Santa Cruz, Sonoma and Ventura.
“Owning a home is an essential part of the American dream. Capping the mortgage interest deduction could create a huge barrier to homeownership and depress existing home values across the country.”
Sales and Income Tax Deductions
The Republican bill eliminates the deduction for state and local income taxes. In California, 5 million households claimed the income tax deduction in 2015.
“Ending this important deduction for the middle-class would mean income could be taxed twice and could lead to the reduction in critical state and local services. Republicans should scrap this one-sided effort and work with Democrats to pass true tax reform that ensures working families aren’t hurt and everyone pays their fair share.”