Breaking News: OCBC supports tax reform with amendments
After several attempts over the last 30 years, Congress is once again attempting tax reform with a vote taking place Thursday on the Tax Cuts and Jobs Act. Currently, several Orange County representatives are either undecided or opposed on the proposal. The plan includes lowering the corporate tax rate from 35 to 20 percent to increase global competitiveness and encouraging companies to return to the U.S., as well as invest in innovation and spur the GDP, which OCBC supports. However, OCBC is concerned about the elimination of the state and local tax (SALT), which is popular in Southern California with an average deduction being between $15,000 to $18,000. OCBC is also concerned about the impact of the Jobs Act on housing in California and the nation. An essential component to alleviating, and ultimately fixing, California’s housing crisis is a healthy supply of affordable housing produced by private developers, which the current bill will hinder under Section 3601. OCBC is in support of comprehensive tax reform, but as California is a donor state and county, it is important that residents are not penalized while also living in a high cost state. For more information, contact Alicia Berhow, Sr. Vice President, Government Affairs.