Gov. Wilson’s Proposed Budget Cuts
Wilson’s budget proposes reducing the renter’s credit on state income tax by $50 for married couples and $25 for single renters. But homeowners are not asked to give up a penny of their tax breaks.
According to Franchise Tax Board figures, the average homeowner deducts $8,000 for mortgage interest and property taxes. Using a 5% state tax rate, the average homeowner gets $400 a year in reduced taxes. Compare this with the current $120 renter credit for couples. Now Wilson wants to reduce the $120 to $70.
Remember when taxes were based on the ability to pay? Knowing that homeowners have higher incomes than renters, Wilson has taken that principle and turned it upside down.
MELVIN SHAPIRO, San Diego
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