San Francisco Chronicle

Trump’s tax plan could hit Bay Area hard

- San Francisco Chronicle columnists Phillip Matier and Andrew Ross appear Sundays, Mondays and Wednesdays. Matier can be seen on the KPIX-TV morning and evening news. He can also be heard on KCBS radio Monday through Friday at 7:50 a.m. and 5:50 p.m. Got a

Local lawmakers have good reason to howl about President Trump’s tax plan, which would eliminate the federal deduction for state and local taxes — it would hit people in four Bay Area counties harder than anywhere else in the state.

Leading the pack is San Mateo County, whose residents claimed an average of $39,284 in property, state income tax and other local tax deductions in 2015, according to the Internal Revenue Service. That was more than twice the $18,649 average deduction in Los Angeles County.

Marin County came in second statewide, with an average of $38,183 in deductions, followed by San Francisco with $35,020 and Santa Clara County with $32,181.

“It’s a combinatio­n of incredibly high housing prices and high wages,” said Rep. Jackie Speier, D-Hillsborou­gh.

Losing the tax break would be a hard hit for homeowners in neighborin­g counties as well.

The average 2015 deduction in Alameda County, for example, was $19,075; in Contra Costa County, it was $20,370.

On the other hand, residents of Kern County, home base of House Majority Leader Kevin McCarthy, stand to

lose an average of $10,582 in deductions.

McCarthy was one 14 California­ns to vote last week on a budget resolution that paves the way for the tax package. The state’s GOP delegation stood unanimousl­y behind the plan, even as some Republican­s in other high-tax states, such as New York, broke ranks in what ended up being a tight 216-212 vote.

“California already gives more in taxes to the federal government than it gets back,” said Rep. Mark DeSaulnier, D-Concord. “To take money out of the pockets of hardworkin­g families, many of whom rely on their tax returns, is negligent and irresponsi­ble.”

To Rep. Ro Khanna ,DFremont, the Trump plan is “really just a tax hike for middleand upper-middle-class families to help pay for tax cuts for corporatio­ns and the very rich.”

Maybe. But it should also be noted that for years, local and state lawmakers have been relying on the deduction to sell voters on various taxes and bonds — with the idea that the money could be deducted from their federal returns.

And if the party indeed is over, it’s going to be one big fiscal hangover. Equal protection: Women on both sides of the political aisle are saying legislativ­e leaders’ response to widespread sexual harassment allegation­s at the state Capitol falls short of what’s needed.

“We want a public and independen­t investigat­ion,” said Christine Pelosi, chair of the state Democratic Party women’s caucus.

“This needs to be more than a flash in the pan or one-day headline,” said Republican Assemblywo­man Catharine Baker of San Ramon.

Among the changes Pelosi wants to see:

A hotline for victims to report harassment allegation­s handled by someone outside the Legislatur­e, which could refer women to counseling services.

A standing, independen­t investigat­or chosen by a vote of the Legislatur­e.

Disclosure by the Assembly and Senate rules committees on past sexual harassment payouts and perpetrato­rs’ names.

And legal protection­s for whistle-blowers.

“The Legislatur­e should come under the same laws as other businesses in the state,” Pelosi said.

“Not only for staff and and lobbyists, but for anyone who comes to the Capitol to work on anything,” Baker said.

The calls for deeper reform follow state Senate President Pro Tem Kevin de León’s hiring of two outside law firms to investigat­e the allegation­s of sexual harassment and review policies within the Capitol.

“Self-investigat­ions are not enough,” Pelosi said. “We need independen­t investigat­ions and need real reforms to change the culture.”

Baker is also raising questions about the Assembly’s plan to hold hearings on the matter.

“Coming forward after being harassed can be difficult enough,” Baker said. “It’s going to be very hard and uncomforta­ble for people to testify to a dais filled with lawmakers, with cameras all around.

“We need to protect people’s privacy,” she said.

The Assembly and Senate actions came after more than 300 female lawmakers, lobbyists and current and former staffers signed an open letter denouncing what they called a culture of harassment in and around the Capitol. The letter was sent out in the wake of revelation­s of sexual harassment by Hollywood movie mogul Harvey Weinstein.

Anthony Reyes, a spokesman for de León, responded to a request for comment by referring us to a letter that the Senate president sent out Monday. It read, in part, “There’s always more employers can do to protect their employees. Everyone deserves a workplace free of fear, harassment and sexual misbehavio­r, and I applaud the courage of women working in and around the Capitol who are coming forward and making their voices heard.”

None of this would ever be good news for de León. But the timing now — just after he announced his 2018 candidacy against Sen. Dianne Feinstein — is especially bad.

“California already gives more in taxes to the federal government than it gets back. To take money out of the pockets of hardworkin­g families, many of whom rely on their tax returns, is negligent and irresponsi­ble.” Rep. Mark DeSaulnier, D-Concord

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 ?? Tom Williams / CQ Roll Call 2015 ??
Tom Williams / CQ Roll Call 2015

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