The best way to overcome a tax cut… is with a tax increase.
Ignoring the immediate benefits of the Republican Party’s tax reform bill, which has already proven to be a windfall for millions of Americans who have received raises and bonuses, two California Democrats have an answer to the sizable tax rate reduction corporations have seen.
Their solution is to force corporations to give half of any expected savings to the state, instead of giving it to American workers.
Of course, they don’t word it exactly like that.
State Assemblymen Kevin McCarty, D-Sacramento, and Phil Ting, D-San Francisco, say the money will be used for social service programs that benefit low-income and middle-class families, The San Francisco Chronicle reported.
The lawmakers propose a tax surcharge on California companies making more than $1 million that would ensure half of their federal tax cut goes to the state — in effect, a tax increase to offset a tax cut — the GOP tax bill cut the corporate rate from 35 percent to 21 percent.
“It is unconscionable to force working families to pay the price for tax breaks and loopholes benefiting corporations and wealthy individuals,” Ting told The Chronicle, making no effort to hide his anti-capitalist views.
“This bill will help blunt the impact of the federal tax plan on everyday Californians by protecting funding for education, affordable health care and other core priorities.”
Of course, Ting is a raging liberal who believes President Donald Trump “wants to be a dictator.”
As a constitutional amendment, the Democrat proposal would require approval from two-thirds of the California Legislature to pass and go before voters, who’d have final approval, the newspaper noted.
Getting to voters will be a tall task, though, given that Democrats no longer have a supermajority in the state.
Via BizPAC
