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California May Accept ‘Charitable’ Donations To Counter GOP Tax Plan

CA May Accept 'Charitable' Donations To Counter GOP Tax Plan

CALIFORNIA — California lawmakers are worried about the impact of the federal GOP tax bill that was just signed into law. In order to fight the pain of the bill, the state may soon begin accepting “charitable” donations, if some state lawmakers have their way.

Senate President pro Tempore Kevin de León (D-Los Angeles), along with Senator Ben Allen (D-Santa Monica) and Senator Jerry Hill (D-San Mateo and Santa Clara), introduced legislation this week “to protect California residents from the targeted federal tax increases that were enacted in the GOP’s recent tax reform,” a press release from the lawmakers states.

SB 227 — dubbed the “Protect California Taxpayers Act” — would make it so taxpayers in the Golden State could make a “charitable donation” to the state, according to the lawmakers. In return, the taxpayer would receive a dollar-for-dollar tax credit on the full amount of their contribution.

Of the bill, de Leon’s office says:

Taxpayers will then be able to deduct their contribution to the Fund from their federal taxes, as they have historically done with their state tax payments. SB 227 is modeled after laws Senator de León authored in 2014 – SB 798 and SB 174, which provided tax credits on charitable donations made to state college affordability grants, like the Cal Grant program.

“The Republican tax plan gives corporations and hedge-fund managers a trillion-dollar tax cut and expects California taxpayers to foot the bill,” Sen. de León said. “We won’t allow California residents to be the casualty of this disastrous tax scheme.”

Sen. Hill said the legislation will “protect” Californians from losing money in the new tax plan.

The Los Angeles Times first reported on the proposal, noting that charitable donations remain deductible on federal taxes.

Under the federal measure, residents can deduct $10,000 paid in state and local taxes from their federal taxes. The effects of the new cap would be deeply felt in many suburban areas of California where people typically pay more than that to the state and local governments. Through De León’s plan, the first $10,000 would be paid via regular taxes and people would have the option of making a charitable contribution to the state for the remainder,” according to the Los Angeles Times.

Published by connie dello buono

Connie Dello Buono is based in Sunnyvale California. Her first ebook is about women's health, Birthing Ways Healing Ways and her recent one is about cancer prevention, Curated Healing Ways. She had helped women have holistic childbirth as childbirth educator, founded Motherhealth, to serve seniors in the bay area with holistic caregivers and blogs at www.clubalthea.com with more than 10,000 health and finance related posts. Connie trains her own caregivers, which are the favorites of most bay area seniors who are home bound and alone. She is active in the rehab and nursing facilities, volunteering on music and movement for seniors. She is a member of Lion's club and offered scholarships to students in the Philippines. She is active at churchinsunnyvale.us and has Fridays Bible home study in Sunnyvale using the recovery version of the Bible , free at biblesforamerica.us She loves dancing and teaching and her courses can be found at https://teachclub.com/@thriveafter60 She is California Life Insurance licensed providing life insurance for older adults with health issues and helping women retire safely with income for life. at menloassetca.com , she helps with 401k rollover. 3 Benefit plans - Mortgage protection using term life insurance to pay for mortgage balance in event of death - Final Expense plan using Single Issue Whole Life Insurance, with cash back, disability benefit and guaranteed in the presence of health issues - Fixed Index Annuity retirement plan for safe, accessibility, less fees, less taxes, avoids probate as it goes directly to beneficiaries, rate of return with no downside market participation. She brings compassion and understanding to the needs of her clients, bringing holistic approach in health and life insurance. Her goal is to free families from worries especially during covid with caregivers and life insurance in the presence of health issues, especially for women. She can be reached at 408-854-1883 , motherhealth@gmail.com

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