Thompson Blasts New Tax Recommendations

Rep. Mike Thompson denounced new recommendations released today by the President's Advisory Panel on Federal Tax Reform. The recommendations would eliminate important tax deductions for Californians, costing taxpayers thousands of dollars each year in increased taxes.

“The panel's recommendations do little to simplify our tax code, instead they saddle middle-class Americans with higher taxes,” Rep. Mike Thompson (D-Napa Valley), a member of the House of Representatives' tax writing committee, said.

The panel recommended eliminating the deduction for state and local taxes, substantially reducing the home mortgage interest deduction, capping the deduction for employer-provided health insurance and reducing the deduction for charitable giving.

“Californians live in some of the most expensive housing markets in the country,” Thompson said. “That fact, coupled with our state and local tax rates, means that eliminating these important deductions will hit taxpayers hard. Californians will see their taxes go up by thousands of dollars a year.”

A report by the House Ways and Means Committee minority staff has shown that if the deduction for state and local taxes is eliminated, average Californians could see their federal taxes increase by over $2,200.

Rep. Mike Thompson is a member of the House Ways and Means Committee which has jurisdiction over tax issues. He is also a member of the Blue Dog Coalition, a group of moderate Democrats dedicated to restoring fiscal responsibility in government.