Proposition 39 – Pros and Cons

Proposition 39 is pretty straightforward, especially compared to how arcane and confusing ballot propositions in California often are.  The measure would raise about $1 billion annually by closing a tax loophole for out-of-state (i.e., those not HQ’ed in California) businesses that make money in the state.  Proponents say we need this new tax revenue to use to stimulate environmental sector and construction jobs.  Opponents say we don’t need a tax increase in times like these, even tough several other states have laws that have closed this loophole.

The official 2012 state voter guide says that prop. 39 would

  • Require out-of-state businesses to calculate their California income tax liability based on the percentage of their sales in California.
  • Repeal an existing law that gives out-of-state businesses an option to choose a tax liability formula that provides favorable tax treatment for businesses with property and payroll outside California.
  • Dedicate $550 million annually for five years from the initiative’s anticipated increase in revenue in order to fund projects that “create energy efficiency and clean energy jobs” in California.

Links to Pro/Con Articles and Endorsements –

I’ll see you all at tomorrow’s meeting to discuss all of the propositions!

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One response

  1. James H. Zimmerman | Reply

    I am sending in my ballot today, with a vote for Jill Stein of the Green Party. You might be interested in looking at her response to some of the Presidential debate questions here:

    http://www.usatoday.com/story/opinion/2012/10/17/jill-stein-green-party-presidential-debate/1637345/

    I agree with this position and one can only wish the major party candidates were as enlightened.
    As she says, Germany owes this to the Green Party.
    How long will it take us to catch up to Germany and Europe?

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