In The Capitol: Holding Corporations Accountable

AB 2439 (Eng)—Requires the 1500 largest publicly traded corporate taxpayers in California to disclose the amount they pay in taxes to the state.

Problem:

Over the years the California legislature has enacted tax policies that have allowed companies to significantly lower their tax burden in return for some anticipated public benefit. However, the current disclosure requirements placed on the beneficiaries of the state’s tax policies are insufficient.

Because of a lack of information, it is nearly impossible to determine if many of the state’s tax policies are actually achieving their intended outcomes. Most notably, the public and decision makers alike have very little information about which companies benefit most from policies such as tax credits and subsidies.

Solution:

One of the best ways to ensure that corporations are holding up their end of their bargain with the public is to make the system more transparent.  At a minimum we must know which companies benefit from the various California corporate subsidies and tax credits.  Without this information there is limited accountability to the public.

Key Figures:
(Note: Because most states, including California, do not collect information about the amount of corporate taxes paid to them specifically, all figures are aggregate amounts paid to all states combined.)

–    Between 2008 and 2010 265 profitable fortune 500 companies paid state income taxes equal to 3.0 percent of their US profits.
–    Three California based companies, McKesson, Core-Mark Holding and Intel, paid either a zero or negative state tax rate during the 2008 to 2010 period.
–    31 California based companies paid less than a six percent tax rate in state taxes between 2008 and 2010.

Support:

California Tax Reform Association (Sponsor)           
Alliance of Californians for Community Empowerment(Sponsor)
Service Employees International Union, Local 721 (Sponsor)
California Public Interest Research Group (CALPIRG)
American Federation of State, County, and Municipal Employees
California Federation of Teachers
California Labor Federation California Nurses Association
California Partnership
PICO California           
Service Employees International Union, California.