California Lawmakers Introduce Bill to Take Trump Tax-Cut Savings From Companies
In response to the GOP’s recent tax overhaul, California lawmakers have introduced legislation that would require some businesses to turn over much of their anticipated savings to the state.
Assemblymen Kevin McCarty of Sacramento and Phil Ting of San Francisco, both Democrats, put forth Assembly Constitutional Amendment 22 on Thursday.
The bill would require a surcharge for California businesses taking in more than $1 million, according to The San Francisco Chronicle.
The surcharge would effectively take away half of the federal tax cut that companies in The Golden State receive, in an effort to distribute the funds to programs benefiting low- and middle-income families.
If passed, the new law has the potential to raise billions of dollars for California’s social service programs, according to Fox News.
Although largely supported by conservatives, the GOP-led tax plan has been criticized by Democrats, who have cited their displeasure with the corporate tax cut.
“Trump’s tax reform plan was nothing more than a middle-class tax increase,” Ting said in a statement. “It is unconscionable to force working families to pay the price for tax breaks and loopholes benefiting corporations and wealthy individuals.”
“This bill will help blunt the impact of the federal tax plan on everyday Californians by protecting funding for education, affordable health care, and other core priorities,” he continued.
McCarty echoed Ting’s sentiments, asserting that the federal tax policy rewards billionaires over the middle class, and calling the tax overhaul “reckless.”
Do you think passage of this law would hurt California’s economy?
“I’ve seen enough billionaire justice in the first 11 months of this presidency to last my lifetime,” McCarty said, according to the Los Angeles Times.
“At a time when reckless federal tax policy favors billionaires over middle-class workers, ACA 22 will help ensure that California can continue to grow and support middle-class families throughout the state.”
However, ACA 22 is up for a difficult fight. The bill requires the approval of two-thirds of the state legislature to become law, according to The Chronicle. This could prove to be a difficult feat, now that Democrats have lost their supermajority in the legislature.
What’s more, even if signed into law by Gov. Jerry Brown, constituents would be given the final say on whether the measure becomes law.
The new GOP tax plan slashed the corporate tax rate from 35 to 21 percent, which the Trump administration asserts will help to stimulate the economy.
Many large corporations have announced increased pay or bonuses in direct response to passage of the tax reform bill. As reported by CNBC, cellular provider AT&T and cable giant Comcast are among the companies that will give their employees sizable bonuses.
However, Ting insists that it is actually California, not Washington, that prioritizes “fiscal responsibility.”
“In contrast to the tumultuous governance model championed by Washington these days, I am grateful to hail from a state that has prioritized fiscal responsibility and progressive investments,” he tweeted earlier this month.
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