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HomeMy WebLinkAboutHR 1 (Oppose)CITY OF DIAMOND BAR C A L I BAR R N 1 A November 15, 2017 Congressman Edward Royce, 39th District 2310 Rayburn House Office Building Washington, DC 20515 Transmittal by Fax to: 202.226.0335 RE: H.R. 1 The Tax Cuts and Jobs Act - OPPOSE Dear Honorable Congressman Royce: I urge you to oppose H.R. 1 - The Tax Cuts and Jobs Act, as it will have the opposite effect in California, negatively impacting the community and many Diamond Bar residents. The League of California Cities, National League of Cities, as well as other local and statewide economic development leaders have voiced concerns of potential impacts to Californians by H.R. 1, including the following: • Reduction of the Mortgage Interest Deduction to $500,000 for new home buyers would negatively impact the delicate housing market and discourage home ownership in higher priced communities throughout California. • Capping the State and Local Tax (SALT) deductions at $10,000 would lead to double taxation for many Diamond Bar homeowners as the average SALT Deduction in California was $18,000. • Disrupt the ability for municipalities to secure tax-exempt Private Activity Bonds (PAB's) that fund critical revenue for police and fire protection services. • Elimination of these deductions would increase the cost of living in California. While the City does not traditionally weigh in on federal tax policy, it is requested that you oppose H.R. 1 unless existing tax deductions are protected. The California and Diamond Bar housing markets would be considerably impacted if these deductions are limited, thereby preventing future new housing development and shrinking the availability of affordable single-family residential housing. Thank you for your consideration on this matter. Fox City cc: City Council League of California Cities Joe A. Gonsalves & Son Jimmy Lin Ruth M. Low Carol Herrera Nancy A. Lyons Steve Tye Mayor Mayor Pro Tem CouncilMember Council Member Council Member City of Diamond Bar 1 21810 Copley Drive Diamond Bar CA 91765-4178 www.DiomondBarCA.gov 1 909.839.7000 Fax 909.861.3117