Those Crazy Californians! Oops…No, Wait
From California comes the latest news of the loony left. The federal government’s tax reform, which dramatically reduces the U.S.’s formerly highest-in-the-world corporate income tax rate, has already sparked a stock market boom and has led many companies to announce pay raises and bonuses for their employees. A great result, right? Not if you are a leftist.
Two California Assemblymen have announced an effort to at least partly undo the federal tax cut within their state:
A pair of California lawmakers want to claw back some of steep tax cuts that corporations will receive under the federal tax overhaul signed last month by President Donald Trump.
Democratic Assemblymen Kevin McCarty of Sacramento and Phil Ting of San Francisco announced Thursday that they will pursue a constitutional amendment to add a surcharge on large companies that do business in California, potentially raising billions of dollars to expand social services for Californians.
The proposal from McCarty and Ting creates a new tax for businesses in California, which already has a state corporate tax rate of 8.84 percent. Companies with annual net income of more than $1 million in California would pay an additional surcharge of 7 percent, or half their savings from the recent federal tax cut.
That’s a great idea! It’s a great idea, that is, if your purpose is to drive even more companies out of California and dramatically reduce job opportunities in California, which already has more people living in poverty than any other state. How crazy can those Californians get? California is the home of lunatic leftism, right?
Well, yes, except for one thing. The proposed constitutional amendment to raise corporate income taxes isn’t likely to go through. Meanwhile, California’s crazy corporate income tax rate of 8.84% is…lower than Minnesota’s rate of 9.8%. If California is already “among the worst states in the country for companies because of its high taxes and extensive regulations,” what does that say about Minnesota?