Legislature Passes Budget

The Legislature passed the budget agreement this morning, and CBP staff have been busy updating this analysis of the budget agreement. In case you missed it, CBP Executive Director Jean Ross was interviewed about the budget agreement this morning on KQED’s Forum program.

Jean Ross said on Forum, “I think what we’re most concerned about at this point in time are the massive corporate tax cuts that come on the back end of this spending plan. And when you put those together with the spending cap…we’re seeing a recipe for deep cuts not only this year and next year, but into the future for California.”

— Lisa Gardiner

3 thoughts on “Legislature Passes Budget

  1. Great site and blog! You folks do amazing work. I have a question about the corporate tax breaks: will the new formula (in which sales are the only factor considered) allow multi-state corporations to escape taxes if all of their sales occur outside of California? How does the budget bill determine what’s “outside” of California for tax purposes?

  2. This gets to a complicated area of corporate tax law that involves both statute and case law. The new policy was enacted in SBx3 15 – that’s probably a good place to start.

  3. Hmmm … so we get to vote to approve tax increases for ourselves but not to approve tax breaks for corporations. By my reckoning corporations have been getting an ever sweetening break since prop 13 was passed, and if CA is as CPB states “a moderate tax state”, isn’t it about time we asked them to pay a fair share?

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