Asm. Autumn Burke Provides a Solution to Trump's Tax Attack on California

Date : 05/16/2018 @ 12:07PM
Source : PR Newswire (US)

Asm. Autumn Burke Provides a Solution to Trump's Tax Attack on California

SACRAMENTO, Calif., May 16, 2018 /PRNewswire/ -- Assemblymember Autumn Burke (D-Inglewood), introduced AB 2217 today to combat the disastrous effects of the federal tax overhaul on California.  AB 2217 establishes the Bridget "Biddy" Mason Golden State Credit Program (Program) to promote civic engagement and secure revenue for vital services. 

Asm. Autumn Burke Logo (PRNewsfoto/California State Assemblymember)

The new federal tax law capped state and local tax deductions at $10,000.  "This negatively impacts approximately 2.6 million California households," said Burke.  "AB 2217 creates a financial benefit to non-profits and educational institutions, the state and taxpayers by creating a mutually beneficial contributory system."   

The bill is named in recognition of Bridget "Biddy" Mason who was born in 1818 as a slave on a plantation in Georgia and came to California, still as a slave in 1850. After gaining her freedom, Mason went on to work as a successful midwife who assisted in hundreds of births to mothers of all walks of life.  Later, Mason founded the First African Methodist Episcopal Church in Los Angeles, California which has since grown to 18,000 members and spends $2 million annually to support over 40 community programs.

AB 2217 creates a contributory system between taxpayers, the state and qualified entities. The Program authorizes the state Treasurer to issue Golden State Credits (GSC) to 501(c)(3) organizations, postsecondary educational institutions that participate in the Cal Grant program, a community college or a K-12 public school district, located in the state. The GSCs can, in turn, be transferred to donating taxpayers equal to the dollar amount of a donation. Qualified entities transfer 90% of the donation amount to the state and taxpayers may, for each GSC, apply a credit to their tax filings equal to 80% of the donation amount.

Assuming a one dollar donation, the financial benefit is threefold. First, the qualified entity is $0.10 better off, because they have issued a credit for a $1.00 donation while transferring $0.90 of that donation to the state. Second, the state is $0.10 better off because the state has received $0.90 of the donation while issuing $0.80 back to the taxpayer as a credit. Third, the taxpayer is better off because they may deduct the total amount of their donation from their federal tax return while taking an $0.80 credit on their state and local returns.

Ultimately, AB 2217 creates a financial benefit to non-profits and educational institutions, the state and taxpayers by creating a mutually beneficial contributory system. Additionally, the Program helps to mitigate the impact, which the new federal tax law will have on state and local revenues. Furthermore, by authorizing credits through entities, which receive donations from taxpayers, the Program engages taxpayers as to where their tax dollars are directed and promotes increased civic engagement.

Cision View original content with multimedia:http://www.prnewswire.com/news-releases/asm-autumn-burke-provides-a-solution-to-trumps-tax-attack-on-california-300649720.html

SOURCE California State Assemblymember, Autumn Burke

Copyright 2018 PR Newswire

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