Blog 2-1 (Proposition 24)

Proposition 24, also known as the "Repeal Corporate Tax Loopholes Act", will ultimately destroy the economy in California. It repeals recent legislation that would allow businesses to lower tax liability and shift operating losses to previous tax years. It also repeals recent legislation that would allow corporations to share tax funding with other corporations in affiliation with them.

The purpose of Proposition 24 is to repeal the laws set in place in 2008-2009, which allowed businesses to lower their tax liability. The goal of prop 24 is to put an end to the tax breaks that large corporations are receiving. This is mainly targeted at the corporations that do not meet the requirements to create new jobs or to stop shipping current jobs overseas. This proposition is also meant to refute the three laws that allowed corporations more tax breaks, while personal income tax, state sales tax, and vehicle license fees were all raised by the Governor and Legislature.

Regardless of where the tax money comes from, it will fund things such as public schools, healthcare, and public safety. There would be some benefits if prop 24 were passed. For example, California citizens would not have to experience constantly raising taxes. Though this seems like a great idea, this proposition has devastating implications. Because of the higher taxes that businesses would be forced to pay, many of them would be forced to close down. Others of them would even be forced to move out of California.

If the laws that were set in place in 2008-2009 were repealed, then taxes for businesses would increase dramatically. This would cause numerous business would leave California, which would a cause a dramatic dip in the economy. It would also account for more losses of jobs in California. Although the goals of prop 24 sound very ideal, if it is put into action it could potentially harm the economy much more than it could help it.

Therefore, the effects that proposition 24 would have on the Californian economy would destroy it. Paying lower taxes would be great, but not in exchange for businesses being forced to lay off workers, or just close down all together. When voting on prop 24, the long-term effects of it must be considered. It may be beneficial to pay lower taxes now, but it certainly wouldn’t be worth destroyed our state’s economy.