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Press Release


CONTACT: Steve Smith (510) 326-4644

Scrutinize Wasteful Corporate Tax Breaks Before Cutting Vital Services

Statement by California Labor Federation Executive Secretary-Treasurer Art Pulaski on May Revise of the State Budget


“For every cut the state is asking seniors, those with disabilities, workers and low-income Californians to absorb in the May Revise, there’s a wasteful corporate tax break that’s draining much-needed revenue. The cuts proposed today aren’t borne of necessity; they’re the result of a failed system that protects tax giveaways for the wealthy and well-connected at the expense of California’s most vulnerable. That’s inexcusable.

“It’s clear that budget stability can’t be achieved without additional revenue. Voters must approve Gov. Brown’s revenue initiative this fall to stave off even more devastating cuts to schools and public safety. But to create long-term stability, the state has to eliminate the maze of loopholes, carve-outs and tax-dodges that corporate lobbyists have written into law over the years, many through backroom deals as leverage in previous budget negotiations.

“Tax giveaways create incentives for big corporations to ship jobs out of state and reward companies for eliminating good-paying jobs and replacing them with low-income, no benefit jobs. These wasteful tax breaks put small businesses at a competitive disadvantage to big corporations. It defies common sense that California continues to offer devastating cuts to vital programs without first getting rid of wasteful tax breaks that cost the state billions every single year.

“We call for an immediate review of every corporate tax break that’s currently lacking a sunset provision before a single cut to essential services is made. If these tax breaks aren’t doing what they intended, they should be abolished and those funds should instead go to restoring programs California families rely upon.

“It’s high time that our system reflects the interests of middle-class Californians, not the special interests of corporate CEOs and their lobbyists.”