That's right. According to an LA Times article -- "The California Chamber of Commerce, the Western States Petroleum Assn. and the California Manufacturers and Technology Assn. are lobbying against the bill, SBX8 32.
Why don't they like it?
Because "of a provision that would impose penalties on corporations and wealthy individuals who take tax credits to which they are not entitled."
Right! They do not want corporations and wealthy individuals to pay a penalty if they claim tax credits that they are not entitled to.
All this bill is doing is bringing California tax laws into line with federal tax law. Yes, federal law already imposes a 20% fine. California would just apply the same fine to California state taxes.
And what are they going to give up if the bill does not pass?
Tax breaks that can already be claimed on federal returns like:
- Not having to pay income tax on the amount of money that your mortgage holder writes off on a short sale.
- Renewable energy companies not having to pay income taxes on federal stimulus grants they receive to jump-start solar and other green energy projects.
Gov. Arnold Schwarzenegger has indicated he would not sign it unless it had support from all the major interests affected by it. He vetoed a similar bill last year because of its penalty provision.
Shame on Arnold and shame on the California Chamber of Commerce, the Western States Petroleum Assn. and the California Manufacturers and Technology Assn.