California Plans a Business Tax Increase

Two lawmakers of California who referred to the tax reform plan of the administration of Donald Trump as a middle-class tax increase has introduced a particular bill which would actually force large organizations to give out more than half of their expected savings as tax to the state. Kevin McCarty and Phil Ting are two assemblymen, both of whom are Democrats, initiated the introduction of an Assembly Constitutional Amendment 22 that calls for a total of a ten percent surcharge on large organizations with a net earning over one million dollars. This particular plan has the capacity to raise billions of dollars for the social services programs of the state. As per the San Francisco Chronicle, Phil Ting mentioned in a statement that it is unethical to force families who are working to pay the price for tax breaks & the inadequacy in the tax law that benefits only the large organization's corporations and wealthy individuals.

He also said that this particular bill will help in blunting the impact of the federal tax plan on everyday Californians by protecting funding for education, affordable health care, and other core priorities. The San Francisco Chronicle reported that about two of the lawmakers are on the verge of facing a huge battle because the Democrats in the state have already lost their supermajority in the Legislature. The tax bill of the administration of Donald Trump slashed the rate of the corporate tax rate from 35 percent to 21 percent. The administration contends that decreasing the burden of the tax will help in the stimulation of the economy which in turn would be a great help in making the United States stay competitive on a global scale.

More than about two million workers have received bonus after the passage of the bill. Congressional Democrats stated that the bill was actually rushed through and it benefits only the top one percent of earners. Nancy Pelosi who is the House Minority Leader has reduced corporate bonuses to something that is extremely embarrassing to be even mentioned. In the previous week, in an editorial in the Sacramento Bee it referred to the tax proposal given by two of the lawmakers of California Kevin McCarty and Phil Ting as dumb. The editorial column read that the tax system of California should be updated in such a way that it should be a perfect match to the economy of the 21st century.

January 16, 2022 - 17:39
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