Experts say GOP tax plan could hurt Californians

Posted at 5:27 PM, Sep 28, 2017
and last updated 2017-09-28 20:27:25-04

SAN DIEGO (KGTV) - A day after the GOP tax plan was released, experts are trying to figure out who it would help and who it would hurt.

Matt Horsley with Pure Financial Advisors agrees that the current tax code, which is over 74,000 pages, needs to be simplified. But he believes the nine-page plan released by Republicans could hurt many of his clients and Californians.

"There's no doubt, for the bulk of our clients the new tax code would negatively impact 80 percent or more," said Horsley.

A big reason for that is because the plan eliminates deductions that Californians rely on.

"When we look at not being able to deduct our property taxes, not being able to deduct our state income taxes, and then not being able to potentially deduct medical expenses that we currently can, those are three major areas," said Horsley. "That could be devastating to many taxpayers."

Richard Rider, Chairman of the San Diego Tax Fighters says he likes the plan and thinks it will be good for the economy but agrees, it's not the best deal for Californians with higher incomes.

"It's going to be complicated, it's going to be hard to know exactly how it plays out, but generally speaking my rule of thumb right now is anybody making less than $70,000 a year is probably going to end up paying the same or less taxes," said Rider.

Horsley agrees that it could help people with lower incomes, however, he hopes the plan doesn't hurt more people than it helps.