ADVOCATE. CONNECT. INNOVATE.

CLSA Wire

Two California Lawmakers Seek to Claim Half of Federal Corporate Tax Cut
Facebook
Twitter
LinkedIn

Jan. 30, 2018
By Brett Johnson

On Jan. 18, Assemblymembers Kevin McCarty (D-Sacramento) and Phil Ting (D-San Francisco) introduced Assembly Constitutional Amendment 22, which would raise corporate taxes on California companies with annual net revenues higher than $1 million. The state tax increase on these corporations is intended to be equivalent to half of the federal tax cut recently signed into law.

Assemblymember McCarty made clear that this legislation is a response to the Trump administration. “I’ve seen enough billionaire justice in the first 11 months of this presidency to last my lifetime,” McCarty said in a statement. “At a time when reckless federal tax policy favors billionaires over middle-class workers, ACA 22 will help ensure that California can continue to grow and support middle-class families throughout the state.”

The authors of the bill state that the revenues raised by ACA 22, which could be as much as $17 billion a year, would primarily benefit low income workers via an expanded earned income tax credit, tax rebates, and additional tax relief to be determined. Revenues would also be spent on increased state-funded child care, early childhood education, affordable healthcare programs, and college financial aid.

By all accounts, however, the bill has little to no chance of passage. It would require a two-thirds vote in both houses of the legislature and would then need to be approved by voters on the November 2018 ballot.

Predictably, the list of organizations opposing ACA 22 is long. CLSA is currently participating in a broad coalition opposing the bill and will continue to work with these and other partners, including CLSA members, towards the bill’s defeat. Any members who would like further information on this bill and our efforts in opposition are encouraged to reach out to Oliver Rocroi (orocroi@califesciences.org) or Brett Johnson (bjohnson@califesciences.org).