The Great Smoky Mountain Journal
Source: Fox News
Posted: Tuesday, January 01, 2019 02:24 PM
California Proposed Bill Would Force Businesses To Fork Over Half Of Expected Savings From Trump Tax Cuts To State
Assemblymen Kevin McCarty 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 paper reported that the two lawmakers face an up-hill battle because Democrats in the state have lost their supermajority in the Legislature.
The Trump administration’s tax bill cut the corporate tax rate from 35 percent to 21 percent. The administration contends that the lessened tax burden will stimulate the economy and help the U.S. stay competitive on a global scale.
Phil Ting
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@PhilTing
In contrast to the tumultuous governance model championed by Washington these days, I am grateful to hail from a state that has prioritized fiscal responsibility and progressive investments. #CABudgethttps://a19.asmdc.org/press-releases/20171213-state-budget-blueprint-balances-fiscal-responsibility-needed-investments-and …
2:29 PM - Jan 10, 2018
State Budget Blueprint Balances Fiscal Responsibility with Needed Investments and Oversight
SACRAMENTO – Assemblymember Phil Ting (D-San Francisco), Chair of the Assembly Budget Committee, released his Blueprint for a Responsible Budget, which prioritizes investments to further the Califo...
a19.asmdc.org
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About 2 million workers have received a bonus after the bill’s passage.
Congressional Democrats said the bill was rushed through and benefits the top 1 percent of earners. House Minority Leader Nancy Pelosi has diminished the corporate bonuses as mere “crumbs.”
An editorial last week in The Sacramento Bee called the McCarty-Ting proposal “dumb.”
“California’s tax system should be updated to match a 21st century economy,” the editorial read. “The high sales tax rate, which hits low-income people hardest, ought to be lowered, and certain services used by wealthier people and corporations ought to be subject to taxes. Proposition 13, the property tax cutting measure approved by voters 40 years ago, could be revisited.”
The editorial pointed out that the state will maintain a $13.5 billion reserve this year, but, “Bills that blindly seek to soak big business and the rich at a time of budget surplus solve nothing.”
The Associated Press contributed to this report.