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A new bill titled “Corporate Fair Share for California & Californians” (SB 37) was proposed by state lawmakers in Oakland today, recommending a two-tiered taxing system on our state’s wealthiest companies.
The bill, said its authors Senator Nancy Skinner and Assemblymember Buffy Wicks, would generate $5 billion annually for K-12 education, community colleges and early childhood education.
The bill proposes two tiers of taxation. First, all companies with a net income over $10 million would pay a 10.84 percent corporate tax rate (compared to the current 8.84 percent).
Second, the bill takes aim at companies with large disparities between CEO and worker pay. The second tier of taxes would punish businesses who pay top-level managers more than 300 times their average worker with a tax rate of 14.84 percent.
If passed, the law would take effect on Jan. 1, 2020.
Follow the bill at http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201920200SB37
Photo by NeONBRAND on Unsplash
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