Latest revision as of 17:05, 25 July 2010

PROPOSITION 24 -- CORPORATE TAXES

Repeals recent legislation which lowered corporate taxes by allowing businesses to shift operating losses to prior tax years; expanding the time in which losses can be shifted; allowing businesses to share tax credits with affiliated corporations; and allowing multi-state companies to use a sales-based income calculation rather than one based on property, payroll, and sales. Major funding support provided by California Teachers Association ($2.2 million). Major opposition funding provided by Fox Group, Time Warner, CBS, General Electric, Cisco Systems, Amgen, Walt Disney Company, and Genentech, Inc.

Proposed GPCA Position

GPCA urges a "Yes" vote on this matter

Analysis

As part of the back-room deal for the 2009 budget, conservatives in the Senate and Assembly were given yet another tax break for Big Corporate Money to take effect next year. Which leaves we Greens and Progressives with what might be the biggest no-brainer of this election: Proposition 24.

We are being asked should large multi-state corporations - who already do not contribute their fair share, who already pay lower rates than the average working family or small business owner - get still more favorable tax treatment from Sacramento? Should we just give away 1.7 billion dollars in tax cuts at a time when our cities and counties are laying off teachers and cops and firemen.

Now that's a tough call isn't it?

Of course, the opponents of this measure (note the names above) will all argue with one thing: jobs. Listen closely and you can hear their steady chant of "job killer, be afraid, job killer, be afraid". They will scream and rant (and buy lots and lots of advertising) telling all of us how California will lose this many or that many jobs because we're asking huge corporations to share, with those of us who work for a living, the burden of funding our state and local governments. Of course, no mention will be made that economists all agree (at least those not already hired by big business) that tax cuts are the absolute worst way to stimulate an economy; infrastructure spending (i.e. schools and bridges and highways) creates far more jobs than just giving Bank Of America a lighter tax bill.

Another tack opponents will take: corporations will abandon California. And to that we Progressives have to ask bluntly, "and your point would be...what?". None of these new tax laws, if We The People allow them to take effect, are going to help small businesses. How is it a bad thing if some locally-owned hardware store or grocer (whose owners pay their fair share) gets to play the game on level ground because Home Depot or Trader Joe's actually have to pay their taxes?

Nobody likes paying taxes. But everyone has to kick in their fair share no matter how many State Senators money can buy. Vote "Yes" on Proposition 24.

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