Corporate Tax Transparency Passes First Hurdle

AB2439_Sacramento_595x200.jpgAs the economy continues to recover from the worst recession in recent history, California’s children, disabled persons and senior citizens are paying the price while working families contribute more than their fair share to fund vital public services and schools.   Assembly Member Mike Eng has authored legislation (AB 2439) that takes the first step to making the economy work for all.

AB 2439 makes corporations report what they are actually paying in California taxes
. It has been estimated that some corporations are currently exploiting up to $50 billion a year in corporate loopholes and tax breaks
, but currently the public has no way of knowing because they are not required to disclose. 
On April 23, Assembly Member Eng presented the bill to the Assembly Revenue and Taxation committee.  
Supporting testimony was given by Blanca Gomez, Executive Board Member of SEIU 721 and Los Angeles County Social Worker and the California Tax Reform Association (CTRA), California Federation of Labor, CalPIRG, ACCE, PICO CA and SEIU State Council.
AB 2439 is NOT anti-business. The majority of businesses in California DO contribute a fair share of taxes. But, there is good reason to suspect that SOME corporations have used tax breaks and loopholes that allow them to pay little or no taxes at all in California, testified Blanca Gomez.  “All Californians, and especially the tens of thousands of children whose welfare is entrusted to LA County social workers, deserve a rational tax system that does not leave revenues on the table or allow desperately needed tax dollars to disappear down a loophole
whose fiscal impact is not clearly understood.” Read the entire testimony: Blanca Gomez Testimony for AB2439.doc.
With almost 20 SEIU 721 members in attendance, AB 2439 was passed in the Revenue and Taxation committee and now moves to the Appropriations Committee. It is believed unless transparency increases and fundamental changes are made to make the economy fair, sustained growth and economic recovery is at risk in California.
SEIU 721 and CTRA are sponsors of the legislation.
Categories: Campaigns