February 20, 2020
SACRAMENTO—Today, Assemblyman Vince Fong (R-Kern County), introduced Assembly Bill 2715 to immediately provide tax relief for middle class families and individuals. This measure will double the homeowners tax exemption, provide comparable relief for renters, eliminate the minimum franchise tax for small businesses, and lower the state personal income tax rate for the middle class.
“The middle class in California is getting crushed by the burden of taxes and costs of Sacramento policies,” said Assemblyman Vince Fong. “The cost of living in California is driving out so many families to other states because they cannot bear this burden any longer. This is shameful—we must act now to provide the financial relief families need to see a future in this state.”
In California, 38 percent of mortgaged homeowners and 55 percent of renters spend over one-third of their household income on housing. According to the California Association of Realtors, only 31 percent of Californian households could afford a median-priced home in 2019. Additionally, since 2015, rents in California’s metropolitan rental markets have risen anywhere from 36 percent to 60 percent.
California businesses and workers are similarly overtaxed. A 2020 study by the Tax Foundation concluded that California was the 49th worst state for personal income tax and 48th worst state for business tax climate.
Because of the high cost of housing and high taxes, over half of Californians are considering leaving the state. For the seventh year in a row, more people have left California than moved in.
AB 2715 is currently in the Assembly Rules Committee and will be referred to policy and fiscal committees in the coming weeks.