Under the Senate budget plan, California would recoup some of the Trump tax giveaways by increasing the tax rate on the very largest corporations. The new rate of 10.99% would apply to just about 2,500 corporations, located all over the U.S., that report taxable income of more than $1.5 million from the business they do in California. The tax rate would impact the nation’s biggest companies, regardless of where they’re headquartered, from WalMart and Amazon to Coca-Cola and Chevron.
Smaller companies that do business in California – the other 99.8% or roughly 1 million businesses – would get a 25% tax cut. Most of those are small businesses that have seen rising costs and could use some help right now. In addition, our Senate plan would provide $1.9 billion in tax relief for renters and low-income families, who also deserve much needed relief from inflation.
In all, our proposed higher tax rate on mega corporations would generate about $6 billion a year in revenue for California. And it would help us