With concerns over the adverse effects on California, Beverly Hills Mayor Lili Bosse signed a letter this week on behalf of the city opposing the federal tax reform bill making its way through Congress.
“This bill is not in our best interest,” Vice Mayor Julian Gold said during the council’s study session last week. “It really does impact not only our residents poorly but it impacts our city and our city’s ability to refinance our bonds and things like that. It really does make sense that we should send a letter in opposition to this.”
HR 1, the Tax Cuts and Jobs Act, passed the House and Senate along party lines. Both chambers are in the process of reconciling the differences in each of their versions of the bill before sending it to the president for approval. Republicans in Congress have promoted the bill for its reduction of the corporate tax rate from 35 percent to 20 percent. Democrats have criticized the bill due to a provision that would repeal the deduction for state and local income tax, saying it will disproportionately cost taxpayers in blue states.
“This bill is so focused on California it could have called us out by zip code,” Councilman Robert Wunderlich said.
He added the letter could be supported on “nonpartisan grounds” in Beverly Hills, where partisan politics rarely factor into public discourse at City Hall compared to L.A., West Hollywood and other cities throughout the county.
The bill has also been criticized by Democrats because it would add more than $1 trillion to the national deficit over the next 10 years, according to the Congressional Budget Office, and for making it this far into the legislative process with little public scrutiny.
A city staff report also cites the bill’s repeal of casualty loss for deduction for wildfires and earthquakes not associated with federal disaster relief legislation, but still allowing the deduction for people affected by hurricanes.
“This bill is just the total opposite of transparency,” Councilman Les Friedman said. “This bill is bad for California, it’s bad for Beverly Hills, it’s bad for homeowners, its bad for anybody who is subject to a natural disaster that occurs in California. I believe it’s targeted to the so-called blue states, and I am extremely supportive of this letter.”
Cameron Onumah, an assistant field representative for Sen. Dianne Feinstein (D-Calif.), reiterated the senator’s opposition to the bill.
“It’s very easy nowadays to talk about partisanship and to get into the business of Republicans versus Democrats,” he said. “Really, the senator looks at this as just simply bad for California and for California cities.
“There have been no hearings on this legislation,” he continued. “Californians were not given a seat at the table. Beverly Hills, as you have done many times in the past when you knew a hearing was coming up, you sent a letter, you let us know how you feel ahead of time. You were not given that opportunity.”
Councilman John Mirisch also criticized the legislative process the bill has followed thus far.
“The way they’re trying to pass it, as a 500-page bill or more, without people having the ability to comment on it … the process is just abominable,” he said.
The staff report says the financial impacts to the city the bill would have are unknown, but there might be reductions in federal money allocated to grant programs that would result in less money for Beverly Hills.
“As strongly as we can word that letter, clearly we need to send that message, and even write it in red ink,” Bosse said.










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