550 Million Dollars Annually Towards Green Energy
Everybody agrees that the government needs to put more money into things like education, infrastructure and green energy. And many of the propositions on the ballot right now are intended to do just that. The problem is that all of that money has to come from somewhere, and chances are it’s from the tax paying citizen. Both Proposition 30 and Proposition 38 seeks to gather extra money for schools by increasing taxation, though one does it in the long term and the other the short term. However many people would feel uncomfortable approving of these propositions as it will directly effect their standard of living. Proposition 39 however is different.
Put simply a vote yes on Proposition 39 will not effect the majority of Californians. It is specifically targeted at large, multi-state corporations who have been evading one billion dollars total worth of tax annually due to a loophole in Californian tax law. By closing this loophole, the state hopes to not only promote in state business more, but also to put 550 million dollars annually towards green energy using the funds gathered from the corporations. Since this law will only effect huge companies with holdings out of state, the tax payer does not need to pay a dime if Proposition 39 is passed. At least in theory.
In practice there will probably be some negative repercussions if Proposition 39 is passed. If huge corporations are heavily taxed, they will be forced to downsize somewhat. This will result in some lost jobs. What’s more, some companies might be scared off from selling in California due to the fact that they will be taxed on sales alone and not their holdings in state. However as far as repercussions go in response to a one billion dollar annually gathering tax, this is quite small. The people effected are a small minority, while the money could help out a great deal of people, not to mention our very planet.
Proposition 39 is not a perfect tax, if we choose to even see it as one considering it simply closes a loophole that shouldn’t have been there to begin with. But as far as taxes go, Proposition 39 aims at only those who are in shady dealings and can afford the money rather than the average citizen, and puts the money towards a great cause. This is a great step forward for state finance.
Guest Post by Rebecca Wilcox
Tags: California, californians, citizen, dollars, education infrastructure, extra money, green energy, infrastructure, jobs, loophole, million dollars, negative repercussions, one billion dollars, small minority, state business, state corporations, tax, tax payer, theory in practice, vote