Assembly Speaker John Pérez (D-Los Angeles) today announced a plan that would raise taxes on out-of-state corporations, with the aim of generating enough revenue to cut college fees by two-thirds for middle-income college students in California.
The proposal is contained in two pieces of legislation, AB 1500 and AB 1501. The first bill would close tax breaks for out-of-state corporations. Under the second bill, extra revenue generated by the suspension of the tax break would be transferred to a new scholarship program for UC, CSU and community college students, according to a statement on Perez’s website.
"The pressures of the recession and massive fee increases have eroded, or even ended, the dream of higher education for too many California families," Pérez said in the statement.
UC President Mark Yudof acknowledged the plan in a statement released this afternoon.
"Like Assembly Speaker Pérez, we are deeply concerned about ensuring affordability for middle-class students who don’t qualify for financial aid," Yudof said in the statement.