California’s Newest Idea: Force Companies To Fork Over Half Their Federal Tax Savings

California is already considered to be one of the worst states for businesses. Over the years, companies big and small have abandoned the state in favor of others, like Texas. Now, they’re exploring another way to make things worse

(Fox News) Calling the Trump administration’s tax reform plan a “middle-class tax increase,” two California lawmakers introduced a bill that would force large companies to fork over half of their expected savings to the state.

Assemblymen Kevin McCarthy and Phil Ting, both Democrats, introduced Assembly Constitutional Amendment 22, which calls for a 10 percent surcharge on companies with a net earnings over $1 million. The plan could potentially raise billions for the state’s social services programs.

“It is unconscionable to force working families to pay the price for tax breaks and loopholes benefiting corporations and wealthy individuals,” Ting said in a statement, according to The San Francisco Chronicle. “This bill will help blunt the impact of the federal tax plan on everyday Californians by protecting funding for education, affordable health care and other core priorities.”

The Democrats have lost their super-majority, and this would require two-thirds to pass before heading to the governor for a signature, so, it is most likely not going to happen. However, just the notion that Democrats would give this a shot can drive companies out. If you broadcast a punch, even if you don’t throw it, people duck. If you broadcast your intention to take more money, businesses take action, which means getting away from those who would take it. Plenty of other states would welcome companies that provide jobs. California seems to think companies, and the people who own them and work at them, are ATMs.

Save $10 on purchases of $49.99 & up on our Fruit Bouquets at Promo Code: FRUIT49
If you liked my post, feel free to subscribe to my rss feeds.

Both comments and trackbacks are currently closed

Comments are closed.

Pirate's Cove