Many Californians face a big financial hit under the Republican tax plan, which would eliminate a major tax break that benefits state residents more than those anywhere else in the U.S. “I think on net, it probably would have a tiny positive impact” on California, Christopher Thornberg, an economist at Beacon Economics in Los Angeles, said of the tax plan. “The upper-middle class are going to get hurt.”The elimination of the state and local tax deduction would deliver a lot of that hurt to those upper-middle-class and middle-class residents. The break has been in the tax code since the U.S. began collecting income taxes in 1913. of Realtors is also worried about eliminating the state and local tax deduction, which reduces the effective cost of property taxes.

Source: Los Angeles Times September 27, 2017 23:49 UTC