Tax Increase Legislation Advances on Questionable Voting Practice
Even with Gov. Newsom pledging not to sign any legislation that would raise taxes, a bill to do exactly that is moving forward in the state Assembly behind some questionable voting practices. Although California is awash in tax revenue, sitting on a massive budget reserve and awaiting billions in federal relief funding, the Assembly Housing Committee this week narrowly approved AB 71 to increase taxes on businesses by up to $2.5 billion. Passage of the bill came after a Housing Committee member was replaced at the last minute, a move that appeared designed to ensure there were enough votes for approval. A similar tactic played out earlier in another committee that allowed the bill to move forward. The Bay Area Council is strongly opposed to AB 71, which would seriously hurt California’s ability to compete for jobs and investment from companies that operate globally. We are continuing our fight against AB 71 as it now moves to the full Assembly for a vote.