Press Releases

CA Controller Calls on Congress to
Save Federal Deduction for State and Local Taxes

(916) 324-2709

SACRAMENTO—In letters to members of the U.S. Senate Committee on Finance and the U.S. House of Representatives Committee on Ways and Means, State Controller Betty T. Yee today expressed her opposition to the president’s proposal to eliminate the federal deduction for state and local taxes.

“With the net effect of a tax increase, this change would be a devastating blow to California’s economy,” said Yee, California’s chief fiscal officer and leading tax official. “Eliminating this deduction would hamper our economic growth, disadvantage companies competing for highly skilled workers, and actually reduce the federal government’s income tax revenue.” 

About 34 percent of California income tax filers deduct state and/or local income taxes on their federal return. President Trump’s proposal would cause California taxpayers to shoulder nearly 20 percent of the new federal tax burden.

The letters are available here.

As the chief fiscal officer of California, Controller Yee is responsible for accountability and disbursement of the state’s financial resources. The Controller also safeguards many types of property until claimed by the rightful owners, and has independent auditing authority over government agencies that spend state funds. She is a member of numerous financing authorities, and fiscal and financial oversight entities including the Franchise Tax Board. She also serves on the boards for the nation’s two largest public pension funds. Elected in 2014, Controller Yee is the tenth woman elected to a statewide office in California’s history. Follow the Controller on Twitter at @CAController and on Facebook at California State Controller’s Office.