California Democrats take aim at company tax savings with surcharge proposal 

Democrat Assemblymen Kevin McCarty and Phil Ting recently introduced Assembly Constitutional Amendment 22, a piece of legislation that calls for a 7 percent surcharge on companies that have net earnings over $1 million, in addition to the current state corporate tax rate of 8.84 percent. 
 
“It is unconscionable to force working families to pay the price for tax breaks and loopholes benefiting corporations and wealthy individuals,” Ting reportedly said in a statement. “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.”
 
Under the GOP’s tax law the corporate tax rate dropped from 35 percent to 21 percent, with Republicans arguing that the move will spur economic growth and lead to increased job opportunities. 
 
However, Democrats argue that it amounts to a tax cut for the wealthy at the expense of middle and lower-class Americans.
 
“Proud to joint author #CaLeg #ACA22 w/@PhilTing. At a time when reckless federal tax policy favors billionaires over middle class workers, ACA 22 will help support middle class families & ensure that CA can continue to grow. #MiddleClassTaxJustice,” Assemblyman McCarty added on Twitter.
 
Business groups in the state are already coming out against the bill, arguing that the Golden State is already a challenging tax and regulatory environment.
 
“Many large employers, including California-based companies, have announced bonuses or pay increases as a result of the recently enacted tax reform, putting more money in the pockets of hardworking Californians,” Rob Lapsley, president of the California Business Roundtable, said in a statement. “Imposing tens of billions of dollars in new taxes on employers will be a major step backwards that will only hurt middle-class Californians struggling to make ends meet.”
 
If the bill is approved by a two-thirds majority of the state Legislature, it will go to the voters for final approval.
 
The move is just the latest effort by liberal lawmakers in California to push back against the Trump agenda in Washington. While recent actions have largely focused on the issue of immigration and climate change, legislators now appear to be expanding their so-called “resistance” into other policy matters.
 
President Trump is the first president in decades to not visit California during his first year in office.

16 comments

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  1. Richard Rider
    Richard Rider 23 January, 2018, 11:29

    You might want to correct this story. It’s NOT a 7% surcharge/tax. It’s a mind-boggling TEN percent. Check the 3rd paragraph of the bill.
    http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201720180ACA22

    The bill would raise the CA already high California corporate income tax from 8.84% to a crushing 18.84% — 57% higher than the 2nd highest state (Iowa) — a 113% increase in the CA tax rate.

    The press got the percent wrong right from the get-go, and once out there this inaccuracy gets reported over and over as fact — drifting around the Internet like an airborne disease. Indeed my forensic analysis of how this story was falsely reported is itself a cautionary tale for the MSM — IF they care about accuracy.
    http://riderrants.blogspot.com/2018/01/how-ca-press-unversally-botched-tax.html

    Reply this comment
    • Terry
      Terry 23 January, 2018, 12:41

      It is probably just another media lie to support this communist govt.

      Reply this comment
    • ricky65
      ricky65 24 January, 2018, 08:33

      Yeah, sort of like the lie about fuel taxes. The diesel tax is always listed as a 20 cent per gallon increase. The problem is the lackey press fails to report that it also includes a 4% sales tax increase also which means the true cost is more like 32-33 cents per gallon. A huge cost increase that drives up costs to the public since every product we use comes to us on diesel trucks.
      The fake news reporting going on today not only includes reporting actual lies but also not reporting the whole story.
      In this case, Abe Lincoln was right: “A lie travels around the world half a dozen times before the truth can get its boots on.”

      Reply this comment
  2. Dude
    Dude 23 January, 2018, 16:26

    Demwits are morons a obviously know nothing about economics. However, they are experts at tax and spend.

    Reply this comment
  3. Queeg
    Queeg 23 January, 2018, 16:48

    Comrades
    comrades

    Today they gave millions of Medi-Cal recipients FREE DENTAL…

    What did you do wrong?????

    Reply this comment
  4. Aposto
    Aposto 24 January, 2018, 16:30

    I do hope that they pass it. AND then I hope everyone of these companies up and leave,move their headquarters leavin this shithole socialist state more broke than a Detroit or a Venezuela

    Reply this comment
  5. Queeg
    Queeg 25 January, 2018, 11:21

    Comrades

    The pressures are enormous from the 7 million poor people in California for life supporting services…..these people compete among themselves for meager/exploitive and declining service jobs….greedy globalists, corporate food barons, plutocrats, tech slavers, Hollywood hypocrites take advantage of these hapless ever growing masses……disgusting, inhuman, alarming.

    Politicans are in fear of them, so they give them free expensive sustenance and care at producers’ expense while producers are up to their necks in fees, taxes, red tape, to the moon health and energy costs……

    Old news, of course…..geesh!

    Stop all guilt trip tipping….talk to your barista to improve himself, encourage maids and janitors you see to get better jobs, mentor young inexperienced entry workers….careful with effectiveness of your charity dollars….demand improved vocational education in community colleges…..shun the ruling class who created this mess.

    The service industry must be destroyed as we know it….it only brings misery, dead ends, despair for the desperate immigrants and uneducated young…..

    Reply this comment
    • eck
      eck 25 January, 2018, 18:05

      I tried to talk to them! They gave me blank stares. They’re all illegals that speak no or poor English.

      Sheesh!

      Reply this comment
  6. Spurwing Plover
    Spurwing Plover 25 January, 2018, 16:33

    Always expect the Dumb-O-Crats to put taxes on anything and everything theres just no change in the minds of the Dumb-O-Crats the Stupid-Jackass Party

    Reply this comment
  7. Joe
    Joe 26 January, 2018, 21:07

    No matter how much the DemoRats take it will never be enough to satisfy their lust for taking.

    Reply this comment
  8. Bubba
    Bubba 30 January, 2018, 05:23

    When was the last time the Democrats cared about the poor and middle class?
    But on the other hand any bunch of people dumb enough to put Moonbeam in the Goverers mansion for sixteen years deserves what they get!

    As it has been said: “For sixty years poor people have been voting Democratic and their still poor”!

    Reply this comment
    • Jack B
      Jack B 1 February, 2018, 11:40

      Correct, all democrats who are not in the top 10% in wealth are starting to realize that their party does not represent their interests.

      Reply this comment
  9. Bunba
    Bunba 30 January, 2018, 05:32

    Ok now we will sing “Obama our Savior” to the tune of the Russian National Athem!

    Reply this comment
  10. Jack B
    Jack B 1 February, 2018, 11:37

    Another brilliant idea. Give corporations another reason not to do business in California. Maybe the illegals can support their mismanaged state with the taxes they do not pay !!!!!!!!!!!!!!

    Reply this comment
  11. Jack B
    Jack B 1 February, 2018, 12:00

    Doubling property values which doubles property taxes should temporarily fund the insanity. Worst home values in the country. Did I just hear someone say “But the weather is so nice !!) My friends who cannot afford astronomically priced mandatory health insurance are getting ready to borrow money to pay their $750.00 fines. It just keeps getting better.

    Reply this comment
  12. Bubba
    Bubba 5 February, 2018, 04:55

    88 years ago people fled the dust bowl and headed to California for a better life. Now people are fleeing California for a better life due to the tax and spend politicians running the state.
    Morons like Ting et al must think business owners will just roll over and pay this. As a former business owner in California I saw the writing on the wall closed my business sold my house and left for tax friendlier state.
    The morons like Ting and Moonbeam giving illegals free everything are the driving force behind the exodus from the state. With other high tax states close behind, but their only answer is we must raise taxes.

    Reply this comment

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Tags assigned to this article:
TaxesKevin McCartyPhil TingDonald Trump

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