The People’s Republic of California strikes again: “two [Democrat] California lawmakers introduced a bill that would force large companies to fork over half of their expected savings to the state,” Fox News reports today.
Those savings are the result of the recent federal tax overhaul passed by Congress and signed by President Trump last month, an extremely pro-business, pro-growth achievement for the administration.
But California Democrats are panicking: how will they continue to run their costly state programs? And how dare successful companies get to keep their profits, expand, hire more people, and pay them more? Clearly that’s the job of the Almighty State!
“Assemblymen Kevin McCarty and Phil Ting, both Democrats, introduced Assembly Constitutional Amendment 22, which calls for a 10 percent surcharge on companies with a net earnings over $1 million. The plan could potentially raise billions for the state’s social services programs.”
Rob Lapsley, president of the California Business Roundtable, said in a statement to The Sacramento Bee last week that this bill “would only push more companies out of California or force them to shut down entirely.”
“Many large employers, including California-based companies, have announced bonuses or pay increases as a result of the recently enacted tax reform, putting more money in the pockets of hardworking Californians. . . . Imposing tens of billions of dollars in new taxes on employers will be a major step backwards that will only hurt middle-class Californians struggling to make ends meet.”
No wonder so many in California and other high-tax blue states are voting with their feet.