The California Senate killed Assembly Speaker John Pérez’s AB
1500, which would have taxed out-of-state businesses. Ding dong,
one more tax measure is dead… for now.
Perez worked like a mad man on Friday to try and nab enough
Republican support for his “middle class scholarship” bill. But it
wasn’t about the scholarship–it was just one more attempt to tax
businesses for another type of California welfare program.
When Perez saw that he didn’t have the votes at the eleventh
hour, he gave in.
Single Sales Factor
AB 1500 was a $1 billion tax increase on out-of-state businesses
that create jobs, pay taxes on their property, sales and payroll
receipts, and have thousands of employees in California.
As California Employers Against Higher Taxes correctly pointed
out, “Proposition 24 sought to make this change in 2010, and
California voters overwhelmingly rejected it by two million
Perez said that a tax loophole is costing California $1 billion
per year. But it was not really a loophole: Until the 2011 tax
year, corporations had been calculating income taxes using
property, payroll and sales for more… Read More