Recall the Progressive-Democratic Party-controlled legislature with their Progressive-Democrat governor who run things in California. In response to the just-passed tax reform bill’s capping of state and local tax deductions on the Federal income tax form at $10,000, these worthies have introduced a bill that would create a State-run “charity” foundation into which California citizens could make “donations” and receive a dollar-for-dollar tax credit that they could then apply to their SALT requirements that exceed those $10,000.
Never mind that, as The Wall Street Journal‘s Editorial Board pointed out last Friday,
According to IRS data, California’s 71,000 taxpayers with million-dollar incomes deducted on average $462,500 in 2015 compared to $6,940 for individuals making between $50,000 and $100,000. Few California middle-class taxpayers will be harmed by the $10,000 deduction cap since the standard deduction has doubled to $12,000.
Kevin De León, President Pro Tempore of the California State Senate, and the Progressive-Democrat who introduced the bill, knows this full well. These worthies are interested in protecting their rich buddies and donors.
Couple this with what the Los Angeles Times published last Sunday. Twenty per cent of California residents are poor according to the Census Bureau’s Supplemental Poverty Measure, which considers the cost of housing, food, utilities, and clothing. The Measure, importantly, also includes noncash government assistance in its income measure. This 20% poverty rate is the highest rate in our nation. It gets worse:
California recipients of state aid receive a disproportionately large share of it in no-strings-attached cash disbursements. It’s as though welfare reform passed California by, leaving a dependency trap in place.
But think about that in conjunction with the California progressive elite’s protection of their rich buds. It’s not “as though welfare reform passed California by,” it has been by design that those elites created that dependency trap. That’s how they get the votes—the poor have far more votes than their wealthy friends—and with those votes the elites can stay in power, exchanging favors and money with their wealthy associates.
Of course, the LAT laid most of this travesty for the poor part of the balance off on an exploding social-services community with its 883,000 full-time-equivalent state and local employees (as of 2014). But who hires and provides the payroll and other budgets for these folks? Yewbetcha.