SACRAMENTO – Citing a study done by the California Tax Reform Association (CTRA), Senator Kevin De León (D-Los Angeles) today released a letter to U.S. Treasury Secretary Timothy Geithner requesting he intervene with the auto industry, which received $80 billion in bailout money from the federal government yet are spending millions to shortchange California taxpayers.
In an article by Lenny Goldberg, Executive Director of the CTRA, that appeared yesterday on the Huffington Post Web site, Goldberg pointed out that Californians paid nearly 12% of the total funds used to bailout the U.S. automakers yet those same automakers are now spending and working feverishly to defeat an effort intended to have them pay their fair share of taxes in California.
“General Motors and Chrysler are effectively, if not literally, spending tax dollars paid for by Californians to campaign and lobby against a tax loophole that costs tens of thousands of California jobs and costs those same California taxpayers more than $1 billion per year,” wrote Senator De León.
Senator De León’s letter makes reference to the auto companies’ efforts to thwart implementation of mandatory Single Sales Factor (SSF) for corporate taxation on out-of-state companies, like GM and Chrysler. According to the non-partisan Legislative Analyst Office, mandating SSF would generate an extra $1 billion per year for California and create an additional 40,000 jobs. It also would level the playing field on taxation for California-based businesses.
A copy of the letter can be found below.