Please ensure Javascript is enabled for purposes of website accessibility

US Olympic Officials Bar Transgender Women From Women’s Competitions

3 hours ago

Gabbard Releases New Documents Targeting Obama Administration

4 hours ago

US Existing Home Sales Fall More Than Expected in June

5 hours ago

Trump Strikes Tariff Deal With Japan, Auto Stocks Surge

6 hours ago

Storyland Will Sparkle for All Visitors With $1 Million City of Fresno Grant

21 hours ago

Ozzy Osbourne, Black Sabbath’s Bat-Biting Frontman, Dies at 76, BBC Reports

1 day ago

Fresno County Authorities Seek Help Locating Missing Woman and Infant

1 day ago

US Justice Dept. Asks Epstein Associate Maxwell to Speak to Prosecutors

1 day ago
If California Stopped Giving Away Billions, It Wouldn't Need New Taxes
Bill McEwen updated website photo 2024
By Bill McEwen, News Director
Published 6 years ago on
May 6, 2019

Share

You’d think that California, which boasts the world’s fifth-largest economy, would have ample tax revenue for schools, roads, and a public safety net.

But, in some people’s eyes, the taxes and fees generated by our $2.75 trillion economy aren’t sufficient to cover the Golden State’s needs.

Portrait of GV Wire News Director/Columnist Bill McEwen

Opinion

Bill McEwen

Thus, on the 2020 ballot, voters will be asked to modify Proposition 13 by loosening tax caps on commercial and industrial properties. Proponents anticipate many billions of dollars for local governments, school districts, and community colleges.

The Legislature and Gov. Gavin Newsom could also move Senate Bill 378 to the ballot. Voters would then decide on an estate tax on wealthy Californians. As much as $1 billion a year would go to programs helping poor families.

“A California estate tax benefits low-income families by helping them build wealth and end the cycle of intergenerational poverty,” says state Sen. Scott Wiener, the San Francisco Democrat who introduced the bill.

How About a New Approach?

Before passing new taxes, shouldn’t California stop giving away more than $16 billion annually in corporate tax breaks and sales tax exemptions?

And take a second look at the $1 billion in local sales taxes kicked back to mega-companies such as Apple in deals negotiated by cities and counties?

Believe it or not, politicians and advocacy groups are asking these questions.

Sen. Hannah-Beth Jackson, a Santa Barbara Democrat, has introduced SB 468. It would kill nine state tax breaks in three years — unless the nonpartisan Legislative Analyst’s Office says they are good deals for taxpayers.

Two Bills Aim to End Tax Breaks and Kickbacks

Sen. Hannah-Beth Jackson, a Santa Barbara Democrat, has introduced SB 468. It would kill nine state tax breaks in three years — unless the nonpartisan Legislative Analyst’s Office says they are good deals for taxpayers.

The breaks she wants under the microscope include sales-tax exemptions for agriculture and custom computer software, and tax credits for research and development.

“For too long, California has routinely granted generous tax credits and exemptions, which divert billions of dollars away from the General Fund, without asking whether they deliver economic or social benefits to our state,” Jackson says. “These are dollars that could be spent in our classrooms, addressing the housing crisis, or combatting wildfires and climate change.”

Sen. Steve Glazer, an East Bay Democrat, wants to end the local tax giveaways that brought Amazon and Ulta fulfillment centers to Fresno and a Best Buy distribution center to Dinuba.

It’s not just Valley cities doing these deals. For example, Apple negotiated a 35% kickback from Cupertino, and Macy’s gets a 50% rebate from Sacramento County.

Sen. Steve Glazer, an East Bay Democrat, wants to end the local tax giveaways that brought Amazon and Ulta fulfillment centers to Fresno and a Best Buy distribution center to Dinuba.

A consultant for the League of California Cities estimates that corporations get $1 billion through these kinds of arrangements. It’s a giveaway of about 20% of the local share of sales taxes.

Armed with these numbers, the League of California Cities is backing Glazer’s SB 531.

Brand Wants to Keep the Tax Giveaways

Fresno Mayor Lee Brand, however, opposes the bill.

He told ABC30 it “would basically prohibit cities in California from offering sales tax incentives . ..  This is one of our biggest tools and they are taking it away from us.”

Even though Glazer’s legislation protects the current agreements and allows kickbacks to brick-and-mortar stores,  Brand fears that without incentives Fresno can’t compete with other cities.

Counters Glazer: “These tax giveaways are bad for cities and bad for residents, who need this money to support police, fire, roads and other vital public services in their communities.”

The solution is comprehensive tax reform based on a clear-eyed analysis of the tax code, the economy, and the effectiveness of incentives.

That’s unlikely in a state whose overriding policy is this: Pass more taxes so Sacramento can give away more money.

[activecampaign form=19]

DON'T MISS

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

DON'T MISS

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

DON'T MISS

White House Says WSJ Report on Trump Being Told Name in Epstein Files “Fake News”

DON'T MISS

Visalia Police Arrest DUI Driver on Probation After Early Morning Chase

DON'T MISS

Clovis Police to Hold DUI Checkpoint on Friday

DON'T MISS

Henry Thompson Did Wonders for Fresno Airport, Leaves ‘Incredibly Big Shoes to Fill’

DON'T MISS

Bryan Kohberger Sentenced to Life for Idaho Killings, Declines to Make Statement

DON'T MISS

US Judge Rejects Bid to Unseal Epstein Grand Jury Transcripts From Florida Probe

DON'T MISS

Wired Wednesday: Why Did Judge Block a New Costco for NW Fresno?

DON'T MISS

Sanger Police Seek Public’s Help in Locating Dangerous Felony Assault Suspect

DON'T MISS

US Republicans Continue Push to Override California Animal Welfare Law

DON'T MISS

Doctor Pleads Guilty to Supplying Ketamine to ‘Friends’ Star Matthew Perry

UP NEXT

A Pro-Trump Community Reckons With Losing a Beloved Immigrant Neighbor

UP NEXT

Why American Jews No Longer Understand One Another

UP NEXT

Masked Raids and Impersonators Driving Force Behind Terror Campaign Across Nation

UP NEXT

I’m Not Leaving Measure C and COG Can’t Make Me: Brooke Ashjian

UP NEXT

I’m a Genocide Scholar. I Know It When I See It.

UP NEXT

California Is Finally Adopting Phonics, Fulfilling a Grandmother’s Dream

UP NEXT

New CA Budget Papers Over $20 Billion Deficit, Ignores Day of Reckoning

UP NEXT

Trump Is Winning the Race to the Bottom

UP NEXT

Why California Ag Is at Odds Over Converting Land to Solar Farms

UP NEXT

Federal Immigration Crackdown Threatens California’s Historic Housing Reforms

Bill McEwen,
News Director
Bill McEwen is news director and columnist for GV Wire. He joined GV Wire in August 2017 after 37 years at The Fresno Bee. With The Bee, he served as Opinion Editor, City Hall reporter, Metro columnist, sports columnist and sports editor through the years. His work has been frequently honored by the California Newspapers Publishers Association, including authoring first-place editorials in 2015 and 2016. Bill and his wife, Karen, are proud parents of two adult sons, and they have two grandsons. You can contact Bill at 559-492-4031 or at Send an Email

Henry Thompson Did Wonders for Fresno Airport, Leaves ‘Incredibly Big Shoes to Fill’

55 minutes ago

Bryan Kohberger Sentenced to Life for Idaho Killings, Declines to Make Statement

56 minutes ago

US Judge Rejects Bid to Unseal Epstein Grand Jury Transcripts From Florida Probe

2 hours ago

Wired Wednesday: Why Did Judge Block a New Costco for NW Fresno?

2 hours ago

Sanger Police Seek Public’s Help in Locating Dangerous Felony Assault Suspect

2 hours ago

US Republicans Continue Push to Override California Animal Welfare Law

2 hours ago

Doctor Pleads Guilty to Supplying Ketamine to ‘Friends’ Star Matthew Perry

3 hours ago

Visalia’s Shirk Street Intersection to Close Starting July 28

3 hours ago

US Olympic Officials Bar Transgender Women From Women’s Competitions

3 hours ago

French President Macron Sues Candace Owens Over Claim France’s First Lady Was Born Male

4 hours ago

White House Says WSJ Report on Trump Being Told Name in Epstein Files “Fake News”

WASHINGTON – The Wall Street Journal’s report that the Justice Department informed Donald Trump in May about his name being in t...

17 minutes ago

President Donald Trump speaks to the media as U.S. Attorney General Pam Bondi and U.S. Attorney General Todd Blanche listen in the Press Briefing Room at the White House in Washington D.C., June 27, 2025. (Reuters File)
17 minutes ago

White House Says WSJ Report on Trump Being Told Name in Epstein Files “Fake News”

27 minutes ago

Visalia Police Arrest DUI Driver on Probation After Early Morning Chase

46 minutes ago

Clovis Police to Hold DUI Checkpoint on Friday

Henry Thompson Fresno Airport
55 minutes ago

Henry Thompson Did Wonders for Fresno Airport, Leaves ‘Incredibly Big Shoes to Fill’

Bryan Kohberger, charged in the murders of four University of Idaho students, appears at the Ada County Courthouse, in Boise, Idaho, U.S., July 2, 2025. Kyle Green/Pool via REUTERS/File Photo
56 minutes ago

Bryan Kohberger Sentenced to Life for Idaho Killings, Declines to Make Statement

US Judge Rejects Bid to Unseal Epstein Grand Jury Transcripts From Florida Probe
2 hours ago

US Judge Rejects Bid to Unseal Epstein Grand Jury Transcripts From Florida Probe

2 hours ago

Wired Wednesday: Why Did Judge Block a New Costco for NW Fresno?

Jose Edward Sepulveda, 29, is wanted by Sanger police for felony domestic violence and aggravated assault. (Sanger PD)
2 hours ago

Sanger Police Seek Public’s Help in Locating Dangerous Felony Assault Suspect

Help continue the work that gets you the news that matters most.

Search

Send this to a friend