A consortium of 75 labor organizations, health advocacy associations and other groups sent a letter to legislative leaders this morning demanding that tax breaks given to businesses in February be repealed before other programs are cut from the state budget.
"Fairness dictates that everyone shares in the pain," the letter says. "And that includes some of the world's wealthiest corporations. Before considering additional cuts to programs Californians care so deeply about, we ask that you shut down these corporate tax giveaways."
The "giveaways" were part of an economic stimulus element in the $40 billion budget-balancing package approved by the Legislature and Gov. Arnold Schwarzenegger in February. They included giving tax credits to small businesses that create new full-time jobs in the next two years, and tax breaks to television and film productions made in California and to companies that do business in more than one state.
In the letter, the coalition estimated the tax breaks would cost the state $2.5 billion a year, although other estimates have put the cumulative impact at about $1 billion.
"This is an issue of basic fairness," said California Labor Federation Executive Secretary-Treasurer Art Pulaski. "Not one additional dollar should be taken from education, services for children, seniors and the disabled or public safety until these unnecessary tax giveaways to wealthy corporations are shut down."
The groups signing the letter ranged from Asian Pacific American Legal Center to the Women's Foundation of California.
The rollback demand adds another ingredient to the budget-balancing soup. The governor has proposed to close a $24 billion gap through about $17 billion in program cuts and $7 billion in accelerated tax collections, borrowing from local governments and other one-time maneuvers.
Earlier this week, Senate President Darrell Steinberg, D-Sacramento, suggested drawing down a $4.5 billion emergency reserve the governor has proposed, in lieu of cutting some social service and education aid programs. Wednesday, Assembly Speaker Karen Bass, D-L.A., indicated her caucus would seek as-yet unspecified "revenue increases."
About Comments
Reader comments on Sacbee.com are the opinions of the writer, not The Sacramento Bee. If you see an objectionable comment, click the "report abuse" button below it. We will delete comments containing inappropriate links, obscenities, hate speech, and personal attacks. Flagrant or repeat violators will be banned. See more about comments here.