Kirsters Baish| After the GOP’s recent tax-cut overhaul, California lawmakers have decided to introduce legislation which would require some businesses to hand over a big portion of their savings to the state.
Democrat Kevin McCarty of Sacramento, an assemblyman, and Democratic assemblyman Phil Ting of San Fransisco both put forth Assembly Constitutional Amendment 22 this past Thursday. The San Fransisco Chronicle reported that this new bill would enforce a surcharge for any California businesses that take in over $1 million.
This new surcharge would take away about half of the federal tax cut which California businesses receive. These funds would be distributed to low and middle income families. If the law is passed it has the potential to raise billions for social service programs in the state of California.
The GOP tax plan has been widely supported by conservatives, but the Democrats have been very open with their displeasure about the tax cut.
Ting explained in a formal statement, “Trump’s tax reform plan was nothing more than a middle-class tax increase. It is unconscionable to force working families to pay the price for tax breaks and loopholes benefiting corporations and wealthy individuals. This bill will help blunt the impact of the federal tax plan on everyday Californians by protecting funding for education, affordable health care, and other core priorities.”
McCarthy had a similar stance. He claimed that the federal tax policy rewards billionaires rather than the middle class. He called the tax cut “reckless.”
McCarthy stated, “I’ve seen enough billionaire justice in the first 11 months of this presidency to last my lifetime. 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.”
ACA 22 is facing a difficult fight. The bill must receive approval of two-thirds of the state legislature in order to become an official law. On top of that, if the law is signed by Governor Jerry Brown, constituents would get the final say on if it becomes a law.
The new tax plan cut the corporate tax rate from 35 to 21 percent. The Trump administration explained that this will help to stimulate our country’s economy. Multiple large corporations have explained that they would be increasing employees’ pay or giving bonuses because of the tax reform bill. CNBC reported that cellular provider AT&T and cable company Comcast would be among the companies granting large sizable bonuses to their employees.
Ting has claimed that California is actually the state prioritizing “fiscal responsibility,” not Washington.
In contrast to the tumultuous governance model championed by Washington these days, I am grateful to hail from a state that has prioritized fiscal responsibility and progressive investments. #CABudgethttps://t.co/vK8Is24E3g
— Phil Ting (@PhilTing) January 10, 2018
“In contrast to the tumultuous governance model championed by Washington these days, I am grateful to hail from a state that has prioritized fiscal responsibility and progressive investments,” he tweeted towards the beginning of the month.
The Democrats will never admit that the Trump administration is doing a good job, even though our economy is booming. Just another part of the anti-Trump movement from the left.