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.
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.
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SOURCE California State Assemblymember, Autumn Burke