Lawmakers Propose Boosting Taxes To Fight Homelessness
Sacramento, CA — A coalition of Democratic California lawmakers is proposing to raise the state’s corporate income tax for larger companies.
Assembly Bill 71 calls for raising the tax from the current 8.84-percent to 9.6-percent for corporations that make over $5-million in the state. It would raise over $2-billion for homeless programs. The idea is to create an ongoing revenue stream for the first time. They note that homelessness was a problem before the coronavirus pandemic and the problem has become accelerated over recent months and needs to be addressed.
Governor Gavin Newsom has not commented specifically about the bill, but stated during the unveiling of his budget that higher taxes are currently “not part of the conversation.”
The California Taxpayers Association is in opposition, and the organization says it would continue to hurt California’s reputation of being hostile to business.