(Sacramento) – The Assembly Committee on Revenue and Taxation has passed AB 1178, a bill authored by Assemblymember Marty Block (78th Assembly District, San Diego) to support California's college students by reducing by $120 million annually the sales tax on textbooks and school supplies found at college bookstores. AB 1178 would take the burden off the shoulders of students by bringing in state revenues currently lost to a corporate tax loophole that allows for the use of foreign tax havens.
“Our college kids are struggling to get by while corporate bad actors take a Cayman Islands Spring Break from paying their fair share in taxes,” Block said. “For some corporations to find a loophole whereby they don't have to pay their fair share is not only unjust, it adds to the burden the rest of us must shoulder and it should be illegal. This bill would close an often-used loophole to level the playing field in terms of tax burdens and help our college students strengthen our state's economy.”
According to California Franchise Tax Board estimates, AB 1178 will generate over $330 million in state revenues over the next three years by collecting taxes currently avoided by the use of foreign tax havens.
A long time advocate of closing corporate tax loopholes that leave an undue tax burden on California residents, Block wrote AB 1178 to ensure corporations would not be penalized for simply conducting economic activity in another country. AB 1178 must now be passed by the Assembly Committee on Appropriations before it is voted on by the full Assembly. For additional information on AB 1178, please contact Assemblymember Marty Block's Sacramento office at (916) 319-2078.
Website of Assemblymember Marty Block: www.asm.ca.gov/block
Here are links to audio of Assemblymember Block:
Assemblymember Block says AB 1178 fulfills a campaign promise. mp3
Assemblymember Block says students are the ones who deserve a tax break. mp3
Assemblymember Block says AB 1178 funnels the money back into education. mp3
Assemblymember Block says AB 1178 will benefit the state's economy. mp3
Contact: David Glanzer(619) 208-2001