<em>Patt Morrison</em> is known for its innovative discussions of local politics and culture, as well as its presentation of the effects of national and world news on Southern California.
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Don’t cry for corporations, California - corporate taxes not as bad as they claim




The reality of California’s corporate tax rate is that it’s very much par for the course compared to other states.
The reality of California’s corporate tax rate is that it’s very much par for the course compared to other states.
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It’s a familiar refrain during ever election cycle in California, as well as every fight to balance the budget: California’s corporate tax rate is so burdensome that it tends to drive business out of the state. It’s an argument that has been made by politicians who would like to lower taxes on businesses to help create jobs and by corporations themselves that aren’t shy about asking for further tax relief. The reality of California’s corporate tax rate is that it’s very much par for the course compared to other states—according to a study of tax rates in all 50 states, California takes about 4.7% of what a business produces in taxes, the national average. The state’s official corporate income tax rate, 8.84%, among the highest in the nation, but it becomes whittled down by various tax credits and other measure that eases the tax burden for large companies. Small businesses, unfortunately for them, tend to pay more taxes than their larger corporate brethren. With a proposition on the ballot that would roll back certain tax credits (Prop. 24) and a debate raging about how to best create jobs in California and balance our budget, should companies be paying higher taxes?

Guests:

Joseph Crosby, Chief Operating Officer and Senior Director of Policy for the Council on State Taxation, which did the study; the Council’s objective is to preserve and promote equitable and nondiscriminatory state and local taxation of multijurisdictional businesses.

Jean Ross, Executive Director of the California Budget Project

Gary Toebben, president and CEO of Los Angeles area Chamber of Commerce