California Senate passes bill to work around tax overhaul

SACRAMENTO, Calif.

SACRAMENTO, Calif. (AP) — The California Senate has passed legislation that aims to protect wealthier taxpayers from facing higher federal tax bills under changes signed late last year by President Donald Trump.

The Senate’s Tuesday vote opens another front in the state’s ongoing war with the Trump administration and Republican-led Congress.

The new federal tax bill caps a deduction for state and local taxes at $10,000. That hits wealthier taxpayers in high-tax states like California the hardest.

The California bill would allow people to make a charitable contribution to the state in lieu of state income taxes, then deduct up to 85 percent of it.

Senate President Pro Tem Kevin de Leon hopes his bill would help people avoid big tax increases under the federal changes.

The legislation now heads to the Assembly.

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