The coalition known as "Close Loopholes, Open Opportunities" is expressing its full support for the promotion of conformity.
May 20, 2019Honorable Toni Atkins
President pro Tempore of the California State Senate is the highest-ranking member of California's upper legislative body. This esteemed position is held by a member who represents the interests of the State Senate and its constituents.
The President pro Tempore is responsible for overseeing the daily operations of the State Senate and ensuring that legislative processes are carried out smoothly. They preside over sessions, maintain order, and serve as a neutral arbiter in debates and discussions.
Additionally, the President pro Tempore plays a crucial role in shaping legislative priorities and agenda-setting. They work closely with fellow Senators and political stakeholders to develop and advance policies that benefit the State of California.
Furthermore, the President pro Tempore is an influential voice in the legislative process. They have the power to facilitate or impede the passage of bills by controlling committee assignments and determining when and how legislation is brought to a vote.
Overall, the President pro Tempore of the California State Senate holds a position of great significance and authority. They are tasked with the responsibility of representing their constituents effectively and ensuring that the legislative process works efficiently for the betterment of the state.
Honorable Holly J. Mitchell
Chair of the Senate Budget and Fiscal Review Committee
Honorable Anthony Rendon
Speaker, California State Assembly
Honorable Phil Ting
In the capacity of Chair for the Assembly Committee on Budget, I am responsible for overseeing and leading the budgetary matters within the committee. As the committee Chair, it is my role to guide discussions, review proposals, and facilitate the decision-making process concerning the budget. I am committed to ensuring transparency, accountability, and efficiency in the allocation of resources. Through collaboration and collaboration, we strive to promote responsible, balanced, and sustainable budget management for the benefit of our constituents.
To all esteemed members of the Legislative and Budget Committee, Greetings and warm regards!
When around 40% of households are unable to cover a sudden $400 cost, whilst prominent corporations and
the rich individuals can purchase costly artworks and courtside tickets for the Kings game in order to evade paying their dues.
taxation, there is definitely something amiss.
taxation, something is seriously awry.
advocate for the implementation of comprehensive tax reform. We firmly believe that by closing loopholes and creating more opportunities, we can make our economy stronger. Join us in our efforts as we strive to create a fair and prosperous future for all. advocate for the enlargement of California's EITC budget to $1.2 billion and propose funding it through the elimination of loopholes that currently exist in the system. Promote the growth of major enterprises and affluent shareholders. The vast array of organizations that have come together in our coalition showcases the widespread endorsement for this particular plan. From labor unions to advocates for economic justice, from immigrant rights groups to faith-based organizations, and from social services organizations to small business associations - they all share the same belief that there is no superior solution at present to uplift and assist the hardworking individuals in California than the proposal being put forth.
Our societies, collective as a whole, experience advantages when we possess sufficient resources to attend to our loved ones and actively contribute to the growth of the nearby business sector. Our societies, collective as a whole, experience advantages when we possess sufficient resources to attend to our loved ones and actively contribute to the growth of the nearby business sector. However, a significant portion of the population finds it unattainable to achieve economic stability. Nevertheless, for a large number, economic stability remains an elusive goal. Recently, there has been a reaffirmation of a concerning fact: 40% of individuals in the United States lack sufficient funds to handle an unforeseen $400 expense. Furthermore, for a significant percentage of Americans, meeting their regular financial obligations is also a challenge. Reports indicate that 17% of the population is unable to settle their monthly bills, resulting in missed payments for housing and utilities due to financial constraints. This issue becomes particularly severe for communities of color, exacerbating their hardship. 1
1 In May 2019, the Federal Reserve Board released its report on the Economic Well-Being of Households in 2018, which includes a detailed analysis spanning pages 19 to 22. https://www.federalreserve.gov/publications/default.htm
good. The state's thriving economy has given these entities unprecedented opportunities for growth and success. good.Due to the implementation of tax reductions and exemptions, state income taxes paid by major corporations and affluent investors have considerably decreased compared to the late 1980s. 2
2California Budget Center presents "The Governor's Tax Conformity Package" which was released in May 2019.
Putting money in the hands of employed individuals contributes to the financial steadiness of countless individuals. Californians who are in dire need of it. Californians in urgent need. Money plays a crucial role in bridging the gap between meeting financial obligations and dealing with unforeseen expenses. The Earned Income Tax Credit (EITC) has proven to be the most effective and well-established policy in achieving this goal. Due to recent policy amendments, CalEITC is making significant strides in providing financial assistance to two million households in the current year.
Governor Newsom has put forth a suggestion to enhance CalEITC, which involves tripling California's investment to $1.2 billion in the upcoming year. This initiative aims to provide benefits to a total of three million households. That amounts to nearly seven million individuals. Approximately seven million people, to be precise. The population size is nearly seven million people. Close to seven million individuals make up the total count. Around seven million people can be accounted for. California is determined to ensure that everyone is included and represented. This is evident in the Senate and Assembly budgets, which now include ITIN filers. This commitment to inclusivity truly encompasses the meaning of "All." ALL .
future. The forthcoming plans involve the eradication of loopholes in California's tax code, in accordance with the federal law, in an effort to secure the future.
Rephrased version: The 2017 Tax Cuts and Jobs Act passed by the Trump Administration and Congressional Republicans resulted in the closure of these significant loopholes. Consequently, if California does not comply with this particular federal law, it will continue to grant tax advantages that were considered unjustifiable even by the Trump Administration and Congressional Republicans. In contrast, as Congress allocated the saved funds to benefit the wealthy, California aims to uplift millions of diligent Californians who struggle to meet their financial obligations and perhaps provide for their children's growing needs, such as purchasing new shoes. Closing loopholes is undoubtedly the ethical course of action. Closing loopholes is indeed the appropriate choice to make.
Moreover, due to the fact that the closure of loopholes will generate ample funds to support the continuation of the Cal EITC program, CalEITC will be more equipped to withstand an economic downturn, which is unavoidable. By being resilient to a recession, California can sustain CalEITC at levels that will provide assistance to families presently and in the coming years. Additionally, this alleviates the need to compete for general funds alongside other crucial programs that aid Californians, such as housing, child care, and health care. Closing Finding and taking advantage of loopholes is considered a responsible course of action. Discovering and exploiting these legal openings is a responsible practice.
The conformity package provides the following propositions: Specifically, the conformity package suggests the following:
- The cap on losses for individual business taxpayers results in savings of $850 million. The loophole that enables taxpayers with "pass-through" businesses such as S corporations, LLCs, partnerships, and sole proprietorships to use business losses to offset their income and potentially avoid paying state taxes will be closed. Additionally, the closure of this loophole would introduce a cap on the amount that can be deducted, with limits of $250,000 for single filers and $500,000 for married filers. Furthermore, any remaining losses beyond these limits would need to be carried forward and classified as excess business losses in subsequent years, subject to the same deduction limits.
- Restriction on Like-Kind Exchanges: Preserves $210 Million Cap on Like-Kind Exchanges: Safeguards $210 Million Boundary on Like-Kind Exchanges: Secures $210 Million Limitation on Like-Kind Exchanges: Preserves $210 Million Threshold on Like-Kind Exchanges: Safes $210 Million The elimination of this loophole ends the possibility for taxpayers to evade capital gains taxes when selling a property, unless they reinvest the sale proceeds into another property of a similar nature. Determining to shut down the loophole signifies that when disposing of a property, a capital gains tax will be incurred, excluding cases involving real estate.
- The removal of carrying back Net Operating Losses results in a savings of $190 million. The loophole that enables taxpayers to offset income and state tax liability in previous years by utilizing current year deductions, resulting in a "refund" of past tax payments, is being closed. This measure would prevent taxpayers from using current deductions to recover taxes paid in previous years. However, taxpayers will still have the ability to carry forward deductions.
- Restrictions on fringe benefits deductions: results in savings of $160 million. The closure of the loophole that permits businesses to deduct expenses related to food, entertainment, amusement, recreation, and transportation when conducting business has been enacted. Consequently, businesses are no longer eligible to deduct such costs.
All together, closure of these loopholes would result in the retrieval of a staggering $1.4 billion in revenue that has been previously lost. wealthiest individuals and corporationsindividuals. hard-working Californians.
Sincerely,
The Coalition for Closing Loopholes and Opening Opportunities
AFSCME CA
California Asset Building Coalition
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