Speaker and Assemblyman Fletcher Joined by Qualcomm Executives and Biocom Representatives, Students in Support of Tax Fairness and Affordable Higher Education
SAN DIEGO - Assembly Speaker John A. Pérez (D-Los Angeles) announced new support for the Middle Class Scholarship Act today, legislation he introduced in February to address the crisis in higher education affordability for California's students and families. He was joined by Assemblymember Nathan Fletcher (I-San Diego) who announced his support for the Middle Class Scholarship Act, and by representatives from the business community and students who will benefit from the Speaker's Legislation.
"This is fundamentally an issue of tax fairness for California's businesses, and restoring opportunity for middle class families across California, who have seen the price of college skyrocket over the past ten years," said Speaker John A. Pérez. "The Middle Class Scholarship Act will close a corporate tax loophole that hurts California's businesses and costs the state jobs, will cut student fees by two-thirds at UC and CSU, and will make our community colleges more affordable as well, helping ensure that all California's students have the chance to make the most of their potential."
Speaker Perez's Middle Class Scholarship is a two-bill package that will eliminate the Elective Single Sales Factor loophole in California law, which allows out-of-state corporations to pay less in taxes than businesses based in California. The money saved by closing this loophole, approximately one billion dollars annually, will be used to fund the Middle Class Scholarship, which will cut student fees by two-thirds for UC and CSU students whose families earn less than $150,000 per year and includes $150 million to increase affordability at the state's community colleges. The bills that make up the Middle Class Scholarship Act are AB 1500 and AB 1501.
"We should all agree that we must do everything possible to make California a more competitive place for job creation and to provide relief to middle-class families," said Assemblyman Nathan Fletcher. "By closing a tax loophole that benefits out of state corporations we can put millions of Californian a step closer to achieving the American Dream. Now is the time to restore access to higher education and also make California a more competitive place to create 21st century jobs."
Student fees have risen dramatically over the past ten years. UC fees have increased by 145 percent, while CSU student fees have increased by 191 percent. Earlier this year, student loan debt surpassed consumer credit card debt in the United States, topping more than one trillion dollars. The Middle Class Scholarship Act will save the average UC student $8,200 while it will save CSU students $4,000 per year. AB 1501 has received strong bipartisan support in the Assembly, and is currently pending in the California State Senate. AB 1500 is currently pending in the Assembly. Both measures require a two-thirds votes of the Legislature to be sent to the Governor for his consideration.
CONTACT: John Vigna (916) 319-2408