California Governor Gavin Newsom Signs New Budget Creating Nation’s First Tax Credit For Union DuesIn the most populous state in the U.S., California, leading politicians often talk about equity, equality, and their efforts to achieve both. Yet a tax break included in the new California state budget signed by Governor Gavin Newsom (D) on June 27 will exacerbate existing inequality in state taxation, critics contend.

California is one of only a handful of states where union dues are tax deductible for state income tax purposes. As part of the new state budget recently signed by Newsom, California lawmakers have made that targeted tax break even more valuable.

The new budget passed by lawmakers in mid-June and signed by Governor Newsom two weeks later will take California’s existing tax deduction for union dues payments and turn it into a tax credit capped at 33% of dues paid. Changing the deduction to a credit makes the union tax break more generous and benefits those who don’t itemize or have a tax liability.

https://www.forbes.com/sites/patrickgleason/2022/07/06/california-governor-gavin-newsom-signs-new-budget-creating-nations-first-tax-credit-for-union-dues/?sh=1ca76b4132e9