Democrats in California are pushing a bill directly aimed at skimming some of the tax breaks that companies might see from the recently passed tax bill.
Two assemblymen, Kevin McCarty of Sacramento and Phil Ting of San Francisco, have a bill that would force companies making more than $1 million to give half of the money they’re seeing from tax breaks to the state. The lawmakers say that the flow of cash would go to helping middle-class families, the San Francisco Chronicle reports.
In a statement, Ting’s office said, “Trump’s tax reform plan was nothing more than a middle-class tax increase.” He added, “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.”
While Democrats have a majority in the California state assembly, they don’t enjoy the level of numbers that would allow them to pass the bill alone. Which means that they’ll be forced to reach across the aisle if they want McCarty and Ting’s bill to pass. The bill needs two-thirds of the lawmakers’ votes in order to become law.
There are a number of companies in California that would pump huge funds into the government if the bill were to pass. The western state is home to the tech giants Apple, Google and Facebook.
And, California’s economy is large enough to rival (and beat) most nations. In 2016, it was the sixth largest economy in the world, beating out France and India. Apple is set to enjoy a massive tax break from the new tax bill that’s been touted by President Trump. The company says that they will spend $30 billion bringing jobs back to the U.S. and that plan will likely only pump more money into California’s already booming economy.