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SJR-21 Federal Tax Cuts and Jobs Act.(2017-2018)

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CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Senate Joint Resolution No. 21


Introduced by Senator Stone
(Coauthors: Senators Anderson, Bates, Fuller, Moorlach, Nielsen, and Vidak)

March 12, 2018


Relative to the federal Tax Cuts and Jobs Act.


LEGISLATIVE COUNSEL'S DIGEST


SJR 21, as introduced, Stone. Federal Tax Cuts and Jobs Act.
This measure would encourage any individual taxpayer in California who disapproves of the federal Tax Cuts and Jobs Act to donate their tax savings to the State of California’s General Fund, as specified.
Fiscal Committee: NO  

WHEREAS, At a time when Californians are struggling with the rising costs of living due to high personal income tax rates and high housing rates due to burdensome regulations, the Republicans in Congress and the President have passed and signed significant tax reform legislation to ease the pain inflicted on California taxpayers, commonly referred to as the Tax Cuts and Jobs Act; and
WHEREAS, Leading tax experts have stated the Tax Cuts and Jobs Act will significantly lower marginal tax rates and the cost of capital, which would lead to a 1.7 percent increase in gross domestic product over the long term, in addition to a 1.5 percent increase in wages, and produce an additional 339,000 full-time jobs; and
WHEREAS, Critics of the Republican Tax Cuts and Jobs Act correctly point out that the federal legislation limits the amount of state and local taxes that can be deducted on individual income tax returns; and
WHEREAS, Placing limits on the state and local tax deduction allows individuals in high-tax states like California to finally recognize the true amount of their state tax liability; and
WHEREAS, The doubling of the federal standard deduction under the Tax Cuts and Jobs Act for single tax filers and married tax filers means that the first $12,000 of income and $24,000 of income, respectively, will be tax free and is a tremendous benefit to average working Californians; and
WHEREAS, The Tax Cuts and Jobs Act doubled the Child Tax Credit from $1,000 per child to $2,000 per child, meaning families will benefit under the act; and
WHEREAS, The Tax Cuts and Jobs Act reduces individual tax rates and reduces the number of tax brackets in a successful attempt to simplify an overly complicated and cumbersome federal tax code; and
WHEREAS, The lowering of the corporate tax rate has already resulted in at least one million employees receiving significant bonuses, salary increases, and benefit increases, thereby putting more money into the pockets of working Americans; and
WHEREAS, The Tax Cuts and Jobs Act has resulted in promises to repatriate hundreds of billions of dollars held by United States companies overseas, meaning more investment and job creation in the United States and California; and
WHEREAS, Leading tax experts, including those at the nationally renowned Tax Foundation, have estimated that the Tax Cuts and Jobs Act could increase the national gross domestic product by 1.7 percent in the long run and lead to a 1.5 percent increase in wages for American workers; and
WHEREAS, The Tax Cuts and Jobs Act and economic policies adopted under the current President are significant factors in record employment levels for African Americans, Hispanics, and minorities across the United States; and
WHEREAS, Californians have the highest income tax rates of any of the 50 states and the District of Columbia, meaning the top income earners in the 13.3 percent state tax bracket will continue to pay 13.3 percent of their earnings under the Tax Cuts and Jobs Act; and
WHEREAS, The California Legislature has considered no fewer than 89 proposals in the current legislative session that would cost taxpayers more than $373 billion annually in higher taxes and fees, including taxes on gasoline, diesel fuel, sodas, candy, groceries, and services, among others; and
WHEREAS, Californians already have the ability to generously donate any tax savings achieved through the Tax Cuts and Jobs Act back to either the United States Treasury or the State of California; and
WHEREAS, Just some of the programs paid for with California’s high tax rates include the High-Speed Rail Program, which has already cost more than $20 billion, and free college tuition for undocumented immigrants while legal residents are subject to tuition rate increases; now, therefore, be it
Resolved by the Senate and the Assembly of the State of California, jointly, That the Legislature encourages any individual taxpayer in California who disapproves of the Tax Cuts and Jobs Act to donate their tax savings to the State of California’s General Fund, which pays for programs including, but not limited to, the bullet train that has already cost the state tens of billions of dollars; and be it further
Resolved, That the Secretary of the Senate transmit copies of this resolution to the President and Vice President of the United States, to the Speaker of the House of Representatives, to the Majority Leader of the United States Senate, to each Senator and Representative from California in the Congress of the United States, and to the author for appropriate distribution.