Taxes

Taxes2018-02-13T17:55:26+00:00

LaMalfa is a traitor to the residents of CD1.

LaMalfa voted for the GOP tax bill passed in December, 2017 and signed by the President.  That legislation has been described by independent analysts as “…the End of All Economic Sanity in Washington” and “…filled with a witches’ brew of gimmicks and outright lies”.  Others say, “The Republican tax plan slams workers and job creators in favor of the rich and inherited wealth.”

Why did LaMalfa vote for such a bill? 

LaMalfa claimed “the bill will save money for the vast majority of filers in the 1st district, and that’s why I support it.”   But it won’t.   Seventy percent of households in CD1 make less than $75,000 per year.   In our District alone, by 2027 the 70% of taxpayers making less than $75,000 per year will pay $45 million MORE in taxes than under current law.   The 30% making more than $75,000 a year will pay over $11 million LESS than under current law.   That’s a swing of $55 million a year from the bottom 70% to the top 30% just in taxes alone.  If you add in the spending cuts in the bill, there is an even larger transfer from the bottom to the top.   This bill helps the wealthy, but it doesn’t help most of us in CD1.

LaMalfa claimed this tax bill “…will create … 111,108 … jobs located in California.”  But it won’t.   With both California’s and the nation’s unemployment rates under 5% the economy is currently very near full employment.  In these circumstances increasing the federal deficit risks creating inflation, driving up interest rates, and potentially triggering another recession.  That won’t create jobs, it will cost jobs.  Millions of jobs were lost in the last recession.  How many will be lost in the next?

LaMalfa claimed this tax bill will increase California’s median household income by $2,932.   If it won’t create jobs, it’s difficult to see how it will increase median income.   Even if it does create some jobs, CD1 is being left behind.  California’s median income increased 11% from 2012 to 2016.   CD1 saw a 1% increase in the same time, just 1/10 of the state average.   How will this supposed increase in the state’s median income help us when LaMalfa is a demonstrated failure at increasing wages locally?

The tax bill, and the budget passed to enable it, also come with spending cuts.   LaMalfa doesn’t talk about it, but to make huge tax cuts for corporations and the wealthy possible, the tax bill and the associated Republican budget reduce spending on Medicare, Medicaid/MediCal, and other health insurance.  Nearly 40% of us, that’s 340,000 people in CD1, depend on public health insurance.   When their health insurance goes away, people get sicker and die sooner.   With less insurance, medical professionals lose jobs, hospitals lose money, and the entire local economy is hurt.

Why did LaMalfa vote for a bill that is so bad for our district?  We might also ask, “Who does he really work for?”  In the last election cycle, LaMalfa took campaign contributions of $37,000 from Paul Ryan and other GOP establishment politicians.  Only three of the 435 Congress members voted the GOP party line more often than Doug LaMalfa.  His votes protected oil and gas companies, coal companies, big banks and billionaires.  This district doesn’t have any of those interests.  LaMalfa can’t stand up to the national party on bills that are bad for Northern California, like the tax bill.  He’s not one of us, he’s one of them.

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