All but two area Republicans vote for tax reform

Dec. 19--While six Southern California Republicans voted for the tax-reform deal approved by the House on Tuesday, the other two -- among the most vulnerable Republicans seeking reelection next year -- cast "no" votes after saying the plan would hurt taxpayers in their districts.

Backers of the plan, which Democrats united in opposing, championed its tax cuts and said it would spur economic growth. They also noted that some deductions from the previous version approved by the House had been restored.

"The final version of the Tax Cuts and Jobs Act creates a competitive, pro-growth tax code that will empower a new generation of American innovation and prosperity," said Rep. Ed Royce, R-Yorba Linda.

High-cost, high-tax states -- including California -- could see tax hikes for many because of a new limit to the deduction allowance for state and local taxes and a $750,000 cap deductions for new home mortgages, down from $1 million for existing mortgages.

The plan approved Tuesday would allow deductions of state and local property, income and sales taxes, with a combined limit of $10,000. Currently, there is no cap on the state and local tax deductions. The earlier proposal approved by the House would have eliminated the income and sales tax deductions entirely.

"Due to the pressure of several members like me, the bill was improved, but not enough for my constituents," Rep. Dana Rohrabacher, R-Costa Mesa, wrote on Facebook in signaling his continued opposition Monday night. Rohrabacher was joined by Rep. Darrell Issa, R-Vista, and 10 other Republicans in voting against the tax reform.

The bill passed in the House 227 to 203, but the chamber is expected to vote again on Wednesday after the Senate made changes to keep passage in that chamber to a simple majority.

Issa's district would be particularly impacted by the reduction in deductions allowances because it has among the highest number of taxpayers who itemize their returns and so could be affected by the change.

In his district, which straddles the Orange-San Diego county line, 46 percent of filers itemize with an average $10,024 of state and local tax deductions, according to the Government Finance Officers Association. That means those with the average deduction or more in his district would likely be paying more federal taxes.

The Orange County district of Rep. Mimi Walters, R-Laguna Beach, also has among the highest numbers of taxpayers who itemize -- 45 percent with an average SALT (state-and-local-tax) deduction of $8,794.

"While I had reservations about previous version of this legislation, I worked to secure meaningful changes that will benefit the taxpayers of (my) district," said Walters, a member of the House GOP leadership team. She cited increasing the SALT deduction and mortgage-interest deductions from the previous version, the doubling of the child-care tax credit and restoring deductions for student loan interest.

She also noted the near-doubling of the standard deduction of $12,000 for single filers and $24,000 for joint filers.

Issa has been listed by the news site Roll Call as the most vulnerable House member in next year's elections, and has drawn four Democratic challengers. Rohrabacher is listed by Roll Call as the fifth most vulnerable and has drawn 12 challengers, eight of them Democrats.

Voters in those two districts reelected the Republican incumbent last year but favored Hillary Clinton over Donald Trump. That was also the case in the districts of Reps. Royce, Walters, and Steve Knight, R-Palmdale. The opposition to Trump contributed to Democrats' targeting all five districts in their effort to flip the 24 GOP seats necessary to take control of the House next year.

House Democrats voted unanimously against the reform plan because they felt it benefited the wealthy and businesses at the expense of others, and because it undermined the Affordable Care Act by eliminating the individual mandate to have health insurance.

"Instead of providing tax relief to middle-class families and small businesses like the ones here in the Inland Empire, this bill is specifically designed to give massive tax breaks to the wealthiest corporations and individuals in our country," said Rep. Pete Aguilar, D-Redlands.

"In addition to adding a trillion dollars to the deficit, this bill will drive up health care costs and raise taxes for millions of working Americans," he said. "Tax reform should be about creating a level playing field where every American has a chance to find success, not lining the pockets of wealthy corporations on the backs of working people."

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