SACRAMENTO, Calif., July 28, 2020 /PRNewswire/ -- The Consumer Federation of California (CFC) has endorsed Proposition 15, the Schools & Communities First initiative, which will close corporate property tax loopholes to generate billions for California's schools, community colleges, and local governments ? all while protecting homeowners, renters, small businesses, and agriculture. Prop 15 also implements new small business tax cuts for those hardest hit by this crisis.
For decades, corporations have shifted their tax burden onto the backs of consumers and homeowners. Despite arguing that these corporate giveaways help consumers, the savings big corporations get from their special interest tax loopholes don't benefit California consumers. The Los Angeles Times stated that "the burden of property taxation shifted decisively onto residential owners from commercial and industrial properties over the last four decades."
Simply put, corporate tax loopholes benefit big corporations, not everyday Californians. In order for California to fully recover from our crisis and reinvest in the future, these corporate property tax loopholes should be closed, as they are in Proposition 15.
"This whole myth that big corporations and wealthy landlords pass down the savings they get from their special interest tax loopholes is absolutely false, and the fact that opponents of Proposition 15 keep trying to mislead voters on this issue says a lot about their campaign," said Consumer Federation of California Executive Director Robert Herrell. "Prop 15 is exactly what California needs to recover from our current crisis and invest in the future. Now more than ever we can't afford corporate tax loopholes at the expense of our schools, our kids and our local communities."
Polling has consistently shown that Californians overwhelmingly support closing corporate tax loopholes to reclaim investments for schools and local communities. In addition to PPIC polling showing a 7 point increase in support for the measure between November 2019 and April 2020, polling of the ballot language that voters will see in November showed 58% support from likely California voters.
According to a recent analysis just 10% of the biggest, most valuable commercial and industrial property owners would generate 92% of the new revenue, illustrating the fact that the largest corporations in the state have gotten a free ride. Moreover, Proposition 15 exempts owners of commercial and industrial properties with combined value of $3 million or less. 90% of all commercial and industrial property in California is worth $3 million or less.
Since 1960, the non-profit Consumer Federation of California has been a strong advocate for consumer protection laws and regulations.
SOURCE Consumer Federation of California