Proposition 24: Tax Fairness Act
From Mobilize the Immigrant Vote
Big corporations should pay their fair share in taxes. A Yes vote on Proposition 24 will keep class sizes smaller, fund children’s healthcare and keep the safety net in place for our most vulnerable communities.
What is it?
The revenue for the State Budget comes from the collection of taxes from individuals, businesses and corporations. Tax breaks are often offered to businesses and corporations to encourage a particular type of commercial activity or behavior, but they don’t guarantee or require job creation. At the same time, tax breaks reduce the amount of money in our State Budget.
Prop 24, the Tax Fairness Act, would eliminate three special tax breaks for big corporations that won’t create or save a single job in California. This proposition will keep taxes for large corporations at their current level because these tax breaks don’t take effect until 2011:
- A tax break that allows multi-state corporations to choose whether they will be taxed on property, payroll or sales;
- A tax break that allows corporations that are experiencing losses in California's current economy to get refunds for taxes paid up to two years previously; and
- A tax break that allows companies with more tax credits than they can use to distribute the tax credits to affiliates.
If it passes, the Legislative Analyst estimates that Prop 24 could increase annual state revenue by $1.3 billion.
With decreasing revenue, California is facing its largest budget crisis in decades. Many programs for California's most vulnerable communities including elders, low-income families, children and people with disabilities are being cut or eliminated. Education has been cut by $17 billion. The majority of taxes that fund our state programs are paid by individuals, not corporations. When corporations pay less, families and small businesses pay more.
If the special tax loopholes are not closed by passing Prop 24, some of the largest and most profitable corporations will receive most of the benefits. With high rates of unemployment, Californians need more jobs and more investment in our communities. But the $1.3 billion in tax breaks big corporations receive will not require them to create or protect one singe job. 98% of all businesses, especially small businesses, will not benefit from these tax breaks if they remain in place. Proposition 24, the Tax Fairness Act, will prevent more than a half-billion dollars from being cut from our public schools and colleges, does not raise taxes and will help ensure that everyone in the state is paying their fair share.
Supporters and Opponents
For more information: http://www.yesprop24.org
- Paid for by We Are California, sponsored committee of Mobilize the Immigrant Vote and Partnership for Immigrant Leadership and Action. 4100 Redwood Rd, Ste 10 #145, Oakland, CA 94619. FPPC# 1332307.