California Senator Proposes Legislation To Eliminate State Contracts With Out-of-State Corporations That Dodge Corporate Taxes

SACRAMENTO, Calif., Aug. 1, 2012 /PRNewswire/ -- Today, the Sacramento Bee reported that California State Senator Kevin De Leon is working on legislation to limit state contracts only to companies who pay their fair share of state taxes.  The legislative proposal follows a report earlier this week revealing that the Four Tax Dodgers -- the four companies leading the opposition to closing a controversial state corporate tax loophole that allows out-of-state companies to dodge paying about $1 billion in state taxes -- have received over $42 million in taxpayer dollars for products and goods over the last several years. Only companies with operations and employees out-of-state can exploit this corporate tax loophole, putting California businesses and their employees at a disadvantage in competing for business in their home state.

Californians to Close the Out-of-State Corporate Tax Loophole said in a statement, "These out-of-state companies want it both ways: they want to pick California taxpayers' pockets by exploiting a corporate tax loophole at the same time they want to keep receiving millions of dollars of state taxes from their lucrative state contracts for goods and services.  We applaud Senator DeLeon's efforts to level the playing field for California businesses and California taxpayers."

Monday's report, "Eating at the Public Trough," which can be viewed at http://www.facebook.com/FairIsFairTaxation, revealed that the Four Tax Dodgers have received over $42 million in taxpayer dollars for goods and services over the last several years at the same time they were using a corporate tax loophole to avoid paying millions in state taxes.  Next week, the Campaign to Close the Corporate Tax Loophole will release a second report that will reveal how the Four Tax Dodgers reacted to efforts to close the loophole in their home states, where they were the ones at a competitive disadvantage.  The report will be released on Monday, August 6.

Today's Sacramento Bee report on the proposed legislation can be found here:

http://blogs.sacbee.com/capitolalertlatest/2012/08/democrat-writing-bill-to-ban-state-contracts-with-tax-foes.html

Paid for by Yes on 39 - Californians to Close the Out-of-State Corporate Tax Loophole.  Major funding by Thomas F. Steyer and Californians for Clean Energy and Jobs, sponsored by environmental organizations and business for clean energy and jobs - Yes on 39.

SOURCE Californians to Close the Out-of-State Corporate Tax Loophole