Mcguire offers bill rolling back tax hike
Senator Mike Mcguire, Chair of the Senate’s Governance and Finance committee, introduced legislation to roll back President Trump’s unfair tax hike on California’s small businesses and middle class families.
SB 104 will reverse the State and Local Taxes limits advanced by the Trump Administration that have hurt California’s small businesses and middle class families. The IRS has already blessed this procedure, and four other states are using it today after passing legislation similar to SB 104 including Connecticut, Louisiana, New Jersey and Oklahoma.
“Let’s not mince words. This Act by the Trump administration was intentional and aimed squarely at states like California,” Senator Mike Mcguire said. “Trump’s tax hike has hurt middle class families and small businesses in every corner of the Golden State. It’s time for a rollback.”
SB 104 helps brings fairness back to the California tax code for small businesses including local stores, restaurants, retail shops and others with a state business license. These businesses will once again be able to deduct standard expenses, creating equity and restoring fairness to our tax code.
“This is about fairness,” Mcguire said. “The Covidinduced recession here in California has been suffocating for so many small businesses. Our bill will help people get back on their feet, and put money back in the pock- ets of hard working families.”
The federal Tax Cuts and Jobs Act—signed in 2018 by President Donald Trump — removed the unlimited state and local tax deduction, and placed a new $10,000 cap. This cap on state and local tax (SALT) deductions disproportionately impacted Californians by limiting the amount residents used to be able to deduct from their federal filings.
SB 104 will allow many small businesses to deduct the value of their state and local taxes from their federal taxes. This will allow families and individual tax payers to deduct more from their personal taxes, as they were able to before the 2018 Trump Tax Act. There are over 1.5 million of these businesses, many family-owned, small mom and pop establishments, on main streets in every corner of California.
SB 104 is co-authored by Assemblymembers Autumn Burke and David Chiu.
“In California, small businesses are the backbone of employment opportunity. It is imperative that we find creative ways to provide them with the critical assistance they need. SB 104 will empower small businesses to weather the current crisis and rebuild for a stronger future. A stronger small business community will lead to a stronger California,” said Assemblywoman Autumn R. Burke (D-inglewood).
“It’s abundantly clear that the goal of much of Trump tax policy was intended to punish blue states like California. This bill corrects that bias and allows California to provide critical services for our residents,” said Assemblymember David Chiu (Dsan Francisco).
SB 104 will help kickstart California’s economy from this pandemicinduced recession, assist thousands of working families and reject the Trump Tax on Californians.
“The Covidinduced recession here in California has been suffocating for so many small businesses. Our bill will help people get back on their fee.” — Senator Mike Mcguire