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Senate on verge of tax re-write with huge implications for Californians




WASHINGTON, DC - NOVEMBER 30:  Senate Majority Leader Mitch McConnell (R-KY) talks with reporters after leaving a tax reform news conference in the Dirksen Senate Office Building on Capitol Hill November 30, 2017 in Washington, DC. McConnell and Senate Republicans hope to pass sweeping tax cuts sometime Thursday or Friday.  (Photo by Chip Somodevilla/Getty Images)
WASHINGTON, DC - NOVEMBER 30: Senate Majority Leader Mitch McConnell (R-KY) talks with reporters after leaving a tax reform news conference in the Dirksen Senate Office Building on Capitol Hill November 30, 2017 in Washington, DC. McConnell and Senate Republicans hope to pass sweeping tax cuts sometime Thursday or Friday. (Photo by Chip Somodevilla/Getty Images)
Chip Somodevilla/Getty Images

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After much back and forth, it appears now that the Senate is close to pushing through a massive re-write of the tax bill. After hours and hours of negotiations and deal-making, leading Senate Republicans say they have enough votes to get the job done. 

Much of what is in the bill currently has huge implications for Californians. The biggest change, being the end of the state and local tax deduction, which gives people a way to reduce their overall tax bill by deducting the income taxes they pay to the state, and the local property taxes they pay on their homes -- deductions that can really add up in high-tax states like California.

About a third of Californians use the deduction, taking an average $18,000 off their taxes. So if the Senate does vote to kill it, that could substantially increase taxes for many people.

"This enormous thing is happening in Washington, D.C. and I just don't think that Californians really know what an enormous effect it would have on our state," said Kate Pratt, a tax lawyer at Loyola Law School. 

KPCC business reporter David Wagner and Health reporter Michelle Faust joined Take Two's A Martinez to break down all the effects of the current plan on the table.

To listen to that conversation, please click on the blue player above.