No matter how the money is spent, it makes sense to eliminate the break for multi-state corporations that allows them to pick which of two formulas they want to use as the basis for their taxes each year. By switching to a system that would tax these companies based only on their sales in this state, the bill would bring California in line with other states, give companies more of an incentive to locate and hire here or at least not move away, and raise about $1 billion a year. This page has previously encouraged such a switch, as has the state legislative analyst. Ideally, the revenue would go into the cash-strapped general fund. And even if it didn’t, but was targeted for higher education, it’s unclear that tuition breaks constitute the best use.

Read full article [here].
by The Editors, The Los Angeles Times.

Posted: April 27th, 2012, by: admin. Categories: . Awaiting Comments.