California Corporate Loophole Repeal Initiative (2010)
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Two prospective Close the Corporate Loophole ballot propositions have been filed with the Attorney General of California and could qualify for the 2010 ballot in California.
The two initiatives, although they are very different in some ways, have as a common goal stopping several corporate tax breaks that are slated to go into effect in 2010 and 2012. The breaks were approved by the California Governor Arnold Schwarzenegger. The initiatives could stop eligible corporations from receiving $2.5 billion in tax breaks per year.[1]
The tax breaks targeted by both propositions were agreed to by California lawmakers as part of budget agreements in late 2008 and in what capitol reporter Steve Harmon refers to as "secret negotiations in February".[2]
The targeted tax breaks include:
- The "single-sales factor". This allows multi-state corporations to choose whether they will be taxed on property, payroll or sales.[2]
- Loss carry-backs. This allows corporations that are experiencing losses in California's current economy to get refunds for taxes paid up to two years previously.
- Tax credit-sharing. This allows companies with more tax credits than they can use to distribute the tax credits to affiliates.
Goldberg version
One proposition (09-0020), an initiated state statute was filed by Lenny Goldberg on July 8, 2009. Goldberg is the executive director of the California Tax Reform Association.
Goldberg's initiative is sponsored by the California Tax Reform Association, AFSCME and the California Federation of Teachers.[2]
Opposition
Allan Zaremberg is the president and CEO of CalChamber, which is California's largest business coalition. He is also the co-chairman of Californians Against Higher Taxes, a group formed in 2004 that opposed California Proposition 56 (2004).
Zaremberg is opposed to the initiative, saying, "It's crazy that public employee unions are opposed to creating more private sector jobs, which enhances revenues to all levels of government."[2]
Path to the ballot
Initiative 09-0020 was approved for petition circulation in September 2009. Supporters have until February 10, 2010 to collect the 433,971 valid signatures that are required in California to put an initiated statute on the ballot.
Johansen/Getman version
A second proposition, 09-0077, was filed on November 5, 2009 by Robin Johansen and Karen Getman of the Remcho, Johansen &·Purcell law firm.
The working title of 09-0077 is "Protect Homeowners and Close Corporate Tax Loopholes Act." Unlike the Goldberg proposition, which is an initiated state statute, 09-0077 would be an initiated constitutional amendment. It proposes to amend Article XIII A and Article XIII of the California Constitution by:
- Adding a new section, Section 2.5, to Article XIII A
- Amending Section 2 of Article XIII
- Amending Section 3 of Article XIII
- Adding a new section, Section 8.55, to Article XVI
- Proposed amendment 09-0077 would also make a number of changes to California Government Code Section 13340 and California's Revenue and Taxation Code.
Path to the ballot
- See also: California signature requirements
As an initiated constitutional amendment, the supporters of Proposition 09-0077 need to submit 694,354 valid signatures to qualify the measure for the ballot.
See also
Interview with spokesman Lenny Goldberg (07/14/09)
External links
- Text of letter requesting ballot title for 09-0200 (Goldberg version)
- Text of letter requesting ballot title for 09-0077 (Johansen-Getman version)
References
- ↑ John Howard Capitol Weekly, "Tax, labor groups target corporate loopholes", July 10, 2009
- ↑ 2.0 2.1 2.2 2.3 Mercury News, "Early steps taken in what could be a pitched battle over corporate tax loopholes", July 13, 2009
