Our union has long fought to ensure that the wealthy and the billionaires pay their fair share and against an agenda that promotes privatization, charter schools and funding cuts to public education.

This year, we have joined major labor unions in the state including SEIU, United Domestic Workers and the California Labor Federation, which represents more than 1,300 unions, in the UnRig California campaign. The campaign is demanding that state lawmakers close corporate tax loopholes and contribute to services like the rest of us. This will help raise revenues to close state budget deficits without deeper cuts to education and essential social services.

A majority of Californians agree with us. According to the Public Policy Institute of California’s February statewide survey, 62% of adults favor closing the state’s budget deficit by raising state taxes paid by the wealthiest Californians.

Corporations and the wealthy have benefited greatly from tax cuts pushed by President Donald Trump, while California workers — and educators — deal with the accompanying cuts to federal health and human services programs.

“We can’t have a system where it is always socialism for the rich and capitalism for the workers — where we have to survive and they get the handouts,” said CTA President David Goldberg at the mid-March rally and press conference announcing UnRig California.

UnRig California’s focus:
• Pay their fair share — Nearly half of profitable California corporations pay ZERO state taxes above the $800 minimum — significantly less than most working people.
• Invest in working people — Corporate profits have hit a record $1.87 trillion, yet workers’ share of wealth is at its lowest point since 1947. We need a tax code that supports shared prosperity.
• Protect the safety net — When corporations pay poverty wages, their workers are forced to rely on public programs like Medi-Cal and CalFresh. Highly profitable employers should contribute to the cost of the safety net they exploit.
• Close corporate tax loopholes — Eliminate outdated tax dodges written by corporate lobbyists. Companies doing business in California should pay taxes on real
global profits.

A major corporate tax loophole is what’s known as Water’s Edge, where companies can choose to only report income earned within the U.S. (the “water’s edge”) rather than their total global profits. This allows corporations to artificially shift profits to offshore tax havens to exclude them from California’s 8.84% corporate tax rate.

AB 1790 (Connolly) was introduced in February and would end the Water’s Edge tax break. “Closing corporate tax loopholes will raise $3 billion in state revenue that would go to the General Fund and increase education funding and bring critical resources back to classrooms,” said CTA Board Member Mara Harvey at the AB 1790 press conference.

“As a public school teacher, I know what happens when classrooms are asked to do more with less — outdated materials, overcrowded classes and fewer counselors and support staff for students who need them most. … If we want California students to have safe, stable, fully funded schools, closing the largest corporate tax loophole in the state is just
common sense.”

Co-sponsored by CTA, SB 1349 (Gonzalez) would ensure that the Legislature has the information needed to evaluate tax expenditures that have been on the books for decades —to help identify lost revenue and make sure corporations pay their fair share.

See the related sidebar on the next page. To learn more and get involved, visit unrigca.org.

This is part of our Fully Fund Our Schools story. Photo: Members lobbied for SB 1349 at the State Capitol in April.

Tax Breaks for Corporations While Californians Struggle

CTA Board Member Mara Harvey speaks at the AB 1790 press conference; the bill would end the “water’s edge” tax break where companies can choose to only report income earned within the U.S rather than their total global profits.

According to a March report by the California Budget & Policy Center (CBPC), the Golden State is estimated to spend over $9 billion on tax breaks for corporations. Under Gov. Gavin Newsom’s current budget proposal, the state is estimated to spend almost six times more on tax breaks for corporations than on state tax credits for low-income Californians during the 2026–27 fiscal year.

Many lower-income Californians and others across the country are already struggling to get by — especially after H.R. 1, the “Big Beautiful” federal megabill, passed in 2025 and made unprecedented cuts to health care and food assistance programs. CBPC notes that H.R. 1 is also giving out more than a trillion dollars’ worth of tax breaks to corporations and the wealthy.

Most Californians want the uber-wealthy to pay their fair share. A new survey by the Public Policy Institute of California shows that 62% of likely voters would vote yes on an initiative that would make existing tax rates for high-income Californians permanent.