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 –
- Summary of prop. 39, pros and cons, and who endorses and opposes it, from Ballotpedia.
- Yes on 39 website sums reasons for voting for it.
- LA Times supports it, as does the SacBee.
- The Orange County Register opposes 39, as it does all tax raising measures of any kind.
- The Republican Party is against it; the Democratic Party is for it.
I’ll see you all at tomorrow’s meeting to discuss all of the propositions!