Volume 45 Number 3
Proposal would provide $2 billion to state
With California schools and community colleges sorely in need of resources, the California Teachers Association has been circulating petitions to qualify an initiative that would rescind corporate tax breaks, providing the state with almost $2 billion more annually.
The Repeal Corporate Tax Loopholes Act:
- repeals a law that would allow businesses to shift operating losses to prior tax years and that would extend the period permitted to shift operating losses to future tax years.
- repeals a law that would allow corporations to share tax credits with affiliated corporations.
- repeals a law that would allow multi-state businesses to use a sales-based income calculation, rather than a combination property-, payroll- and sales-based income calculation.
Pay fair share
CTA President David A. Sanchez said educators are supporting the Repeal Corporate Tax Loopholes Act because in these tough economic times everybody must be paying their fair share, and when big corporations are paying less, middle class families are paying more. Lawmakers approved the $2 billion in tax breaks for large corporations and oil companies without any requirements for these companies to create new jobs. What’s more, the tax breaks were negotiated in secret without any public hearings.
“The state has cut more than $17 billion from public education over the last two years, and the governor wants to cut another $2.5 billion in his proposed budget,” Sanchez said. “Our classrooms are battered by cuts. Class sizes have increased and vital student programs have been eliminated. Now is not the time to be handing out tax breaks to a small number of large corporations and oil companies – everybody must be paying their fair share.”