Don’t take my word for it. Listen to the nonpartisan state Legislative Analyst’s Office, which says closing this tax loophole for out-of-state businesses will increase economic activity and produce jobs — on top of helping bring in more revenue to fix the state’s chronic budget problems.
That’s why a broad coalition of business, health, and environmental advocates are gathering signatures to put an initiative on the ballot that will close this tax loophole. Our ballot measure will help solve the state’s budget problem and also create tens of thousands of quality, clean energy jobs throughout the state. We’ll require that all corporations pay taxes based on the amount of sales they do in our state, and by doing so put California companies on a level playing field. It will also bring in $1.1 billion dollars to fund state services like public safety and higher education.
Our initiative will take half that money — $550 million for the next five years — and put it into a fund to create jobs. We’ll put Californians to work improving the energy efficiency of schools and public buildings, retrofitting colleges and universities, participating in public-private partnerships, and learning in workforce development programs for veterans and disadvantaged young people. These will be jobs for Californians, in California, beginning in just eight months.
It’s a simple fix to our tax code, and polling shows that nearly 70 percent of our state’s voters support the idea of closing this unfair loophole. However, we don’t need polling. We hear it every day as they gather signatures throughout the state to put this measure on the ballot. Californians want a fair tax system. They want a balanced, transparent tax code. And if they had it, they would be more than willing to pay their fair share.
We probably will never get to place where Californians are elated for Tax Day, but an initiative to correct the sales factor and treat California-based businesses fairly will go a long way toward helping families understand where their tax dollars are going. If we pass this ballot measure, those dollars will go toward job creation and better schools in California – and that’s something Californians’ can get behind.