President Trump's tax proposal could yield mixed results for California homeowners

Posted at 6:44 AM, Apr 27, 2017
and last updated 2017-04-27 09:44:45-04

SAN DIEGO (KGTV) - More condos are going up around San Diego, and while President Trump is promising to keep home ownership tax deductions in his vision for tax reform, there's one thing he didn't include that could sting across California when it's time to file.

The president said his plan to cut personal and corporate taxes would create jobs. He plans to keep the highly valued mortgage interest deduction, which can save San Diegans thousands a year.

However, Trump's outline doesn't mention writing off state and local taxes.

Californians pay some of the highest taxes in the nation. The average San Diego income earner pays as much as 9.3 percent.

Those who write off mortgage interest itemize, so they won't benefit from the president's plan to double the standard deduction.

"The fact that it doesn't outline that all itemized deductions eliminated other than charitable donations and mortgage payments, affect us here in California because we're a high tax state," said Alan Gin, a University of San Diego economist.

Lynn Reaser, chief economist at Point Loma Nazarene University, said Trump's plan to cut personal and corporate taxes could spur hiring, job growth and much-needed business investment that could get people more money to spend.

North Park homeowner David Higgins said he just wants his tax dollars going to issues he cares about.

"Taxes are a way we can pay our fair share to keep the community infrastructure in place and to keep affordable housing, and of course here in San Diego, to address a horrific homeless population," he said.

The president said he'll spend May working on the plan with members of the House and Senate.