In California, under current tax law, out-of-state companies can actually be rewarded at tax time for cutting jobs in our state.
Years ago, in a late night budget deal, an obscure tax provision allowed companies to choose the lower rate between two tax formulas. The result of that deal actually penalizes job growth in California.
That’s a hard sell in a state with two million people unemployed, and a harder sell when the loss in state tax revenue exceeds $1 billion annually.
That’s why I’m supporting Proposition 39 on the November ballot. Proposition 39 would balance the playing field between California-based companies with employees working in California, against out-of-state companies who primarily do not employ Californians but sell into our market.
For the first five years, half the funds would go to school and other essential services and half would be directed to energy efficiency and renewable energy projects on schools and businesses, creating tens of thousands of private sector jobs.
Proposition 39 adds up to tax fairness and more jobs: an easy decision for this Californian.