This warning — "Death of the Corporation Tax” is part of the Budget Deal — kicks off a press release I just got from our friends at the California Tax Reform Association about the smoke and mirrors budget agreement announced by legislative leaders in Sacramento today. Not only have they decided to balance the budget by borrowing cash from regular Californians with early collections of personal income taxes (Judy Dugan blogs about that here), they’ve also decided to give away the farm to corporations.
The deal would suspend tax credits on losses by corporations for a few years to drum up some instant cash in exchange for a drastic shift in corporate tax policy. Under this plan, corporations will be able to demand tax refunds during a struggling economy, or sell unused tax credits to the highest bidder.
It’s a giveaway to corporations so politicians can put off the tough decisions on the state budget. Download the analysis here.