California Democratic leaders are quick to take away any money businesses would see because of the new federal tax laws. They want to double the state corporate tax rate.
Assemblymen Kevin McCarty (D-Sacramento), and Phil Ting (D-San Francisco) have proposed an Assembly Constitutional Amendment that would create a tax surcharge on any California business that makes more than $1 million. They want half of the the federal tax cut to go back to the state.
“Trump’s tax reform plan was nothing more than a middle-class tax increase,” Ting said in a statement. “It is unconscionable to force working families to pay the price for tax breaks and loopholes benefiting corporations and wealthy individuals. 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 bill needs two-thirds majority to pass, which should prove to be difficult now that Democrats have lost their majority.
The list of businesses that have left California due to their backwards liberal policies reads like some sort of top company roll call. Nestle, Nissan, Toyota, Jamba Juice, Occidental Petroleum, Numira Biosciences and Omnitracs are just a few that headed for more business friendly headquarters.
Since 2014, as many as 9,000 companies have left California, according to Joe Vranich, president of Spectrum Location Solutions in Irvine. And no one should wonder why. Just by simply putting California behind them, these companies are saving 20 percent to 35 percent a year in operating costs, Vranich says.
The proposed bill makes no economic sense, not only will it deny businesses in California the benefits of a federal tax break, it sends a clear signal that California has no interest in protecting the interests of its people.
California is a fledgling state, with the highest poverty rate in America, and the worst schools. Due to their “sanctuary state” status, they have allowed so many illegal immigrants in, their state finances are in the red. The schools are overcrowded, nearly one quarter of America’s homeless people live there, and the state’s income inequality ratio is now larger than Mexico’s.