GOP deal to keep property deduction as part of tax overhaul leaves California lagging some other states – Los Angeles Times

The decision by a key House Republican to maintain the deduction for property taxes but not for other state and local taxes is a victory for California but a bigger win for residents of other states.

While California has the highest top state income tax rate in the nation, the state ranks in the bottom third by one measure for property taxes, which have been limited since voters passed Proposition 13 in 1978.

“Retaining the property tax deduction is throwing us a bone but it is not enough,” said California State Controller Betty Yee, a Democrat. “The federal tax reform plan remains unfair to Californians.”

However, the deal to keep part of the state and local tax deduction in the Republican tax overhaul bill set to be unveiled Wednesday still would be a win for California. Republicans had planned to eliminate the deduction.

GOP deal to keep property deduction as part of tax overhaul leaves California lagging some other states – Los Angeles Times

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