California’s businesses and entrepreneurs are sure to take notice of new legislation currently being introduced into the California State legislature.
According to the LA Times, the proposed legislation would “raise the state’s business taxes in response to President Trump’s federal tax overhaul.
The LA Times reported:
Assemblymen Kevin McCarty of Sacramento and Phil Ting of San Francisco introduced Assembly Constitutional Amendment 22 Thursday that would raise corporate taxes on California companies with revenues higher than $1 million. The state tax hike would be for an amount equivalent to half what they received from the federal tax cut.
McCarty and Ting’s proposal faces long odds. It requires supermajority support in both houses of the Legislature and, if passed, would also need voter approval on the November 2018 ballot.
McCarty released a statement explaining his reasons for the proposed tax hike that essentially takes back half of what businesses save through the GOP tax cuts.
“I’ve seen enough billionaire justice in the first 11 months of this presidency to last my lifetime,” McCarty said. “At a time when reckless federal tax policy favors billionaires over middle-class workers, ACA 22 will help ensure that California can continue to grow and support middle-class families throughout the state.”
While McCarty talks about billionaires, it seems as though the tax hike targets businesses that barely make over a million as well. This legislation could affect small businesses.
The Small Business Administration (SBA) considers some employers that make $1 million a year to be small businesses.
It should be interesting to see the reaction from California businesses to the news that they’re taxes could be going up after so recently going down.