Please ensure Javascript is enabled for purposes of website accessibility

Poorest Americans Dealt Biggest Blow Under Senate Republican Tax Package

2 hours ago

Trump Vowed to Dismantle MS-13. His Deal With Bukele Threatens That Effort.

6 hours ago

Ukraine Voices Concern as US Halts Some Missile Shipments

6 hours ago

Poll: Most Americans Say National Divide, Political Violence Threaten Democracy

7 hours ago

Paramount Settles With Trump Over ‘60 Minutes’ Interview for $16 Million

7 hours ago

Republicans Tee up House Vote on Trump Bill, Outcome Uncertain

7 hours ago

What’s Next for Sean ‘Diddy’ Combs After His Sex Trafficking Trial?

7 hours ago

Dalai Lama Says He Will Be Reincarnated, Trust Will Identify Successor

7 hours 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

Madera County Deputy Injured, Wanted Felon Arrested After Violent Struggle

DON'T MISS

San Luis Obispo County Wildfire Burns More Than 3,000 Acres. No Containment Yet

DON'T MISS

Wired Wednesday: Why Is State Lawmaker Taking Aim at Rooftop Solar?

DON'T MISS

Two Visalia Men Sentenced in 2021 Motel Killing

DON'T MISS

Ex-Jan. 6 Defendant Gets Life in Prison for Plot to Kill FBI Agents

DON'T MISS

Del Monte Files for Bankruptcy. Gets Nearly $1B to Keep Producing Through Process

DON'T MISS

Who is Running for Fresno Area Offices in 2026? An Updated Look

DON'T MISS

CIA Review Finds Flaws but Does Not Dispute Finding Putin Sought to Sway 2016 Vote to Trump

DON'T MISS

Poorest Americans Dealt Biggest Blow Under Senate Republican Tax Package

DON'T MISS

Check Out Newest Downtown Mural. It’s a Spectacular Tribute to Fresno Artisans

UP NEXT

Dear Mayor and City Council, Fresno’s Housing Bottlenecks Are a Modern Form of Redlining

UP NEXT

A Path Forward on Immigration Reform That Strengthens America

UP NEXT

Israel Faces Genocide Accusations Amid Gaza Food Aid Killings

UP NEXT

I Detest Netanyahu, but on Some Things He’s Actually Right

UP NEXT

Much of LA’s Community of Immigrants Is Hiding, Leaving a Hole in the Fabric of the City

UP NEXT

Things Netanyahu Might Say if Injected With Truth Serum

UP NEXT

California Politicians Ignore Ag’s Troubles, but Boost Movie Business

UP NEXT

Trump’s Courageous and Correct Decision to Bomb Iran

UP NEXT

How the Attacks on Iran Are Part of a Much Bigger Global Struggle

UP NEXT

Groceries Are Now a Luxury. So Is Breathing.

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

Two Visalia Men Sentenced in 2021 Motel Killing

49 minutes ago

Ex-Jan. 6 Defendant Gets Life in Prison for Plot to Kill FBI Agents

1 hour ago

Del Monte Files for Bankruptcy. Gets Nearly $1B to Keep Producing Through Process

2 hours ago

Who is Running for Fresno Area Offices in 2026? An Updated Look

2 hours ago

CIA Review Finds Flaws but Does Not Dispute Finding Putin Sought to Sway 2016 Vote to Trump

2 hours ago

Poorest Americans Dealt Biggest Blow Under Senate Republican Tax Package

2 hours ago

Check Out Newest Downtown Mural. It’s a Spectacular Tribute to Fresno Artisans

3 hours ago

US Judge Blocks Trump Asylum Ban at US-Mexico Border, Says He Exceeded Authority

4 hours ago

Fresno Fire Investigators Seek Public’s Help in Arson Case

4 hours ago

CHP Officer Dies in Line of Duty After Medical Emergency While on Patrol

4 hours ago

Madera County Deputy Injured, Wanted Felon Arrested After Violent Struggle

A Madera County Sheriff’s deputy was injured Tuesday during a violent encounter with a wanted felon near the Fresno River, the Madera County...

5 minutes ago

On Tuesday, July 1, 2025, a Madera County sheriff’s deputy was injured while trying to arrest a wanted felon, Felix Adrian Nucamendi Carrasco, 40, who later fled and was captured near Raymond Road. (Madera County SO)
5 minutes ago

Madera County Deputy Injured, Wanted Felon Arrested After Violent Struggle

A wildfire dubbed the Madre Fire has burned over 3,300 acres near New Cuyama with 0% containment, officials said Wednesday, July 2, 2025. (CalFire)
9 minutes ago

San Luis Obispo County Wildfire Burns More Than 3,000 Acres. No Containment Yet

27 minutes ago

Wired Wednesday: Why Is State Lawmaker Taking Aim at Rooftop Solar?

Jose Luna (left), 33, and Ralph Grajeda, 45, both of Visalia, have been sentenced for their roles in the 2020 shotgun killing of Robert Soto at a local motel. (Tulare County DA)
49 minutes ago

Two Visalia Men Sentenced in 2021 Motel Killing

A U.S. Justice Department logo or seal showing Justice Department headquarters, known as "Main Justice," is seen behind the podium in the Department's headquarters briefing room before a news conference with the Attorney General in Washington, January 24, 2023. (Reuters File)
1 hour ago

Ex-Jan. 6 Defendant Gets Life in Prison for Plot to Kill FBI Agents

2 hours ago

Del Monte Files for Bankruptcy. Gets Nearly $1B to Keep Producing Through Process

2 hours ago

Who is Running for Fresno Area Offices in 2026? An Updated Look

CIA (Central Intelligence Agency) logo and U.S. flag are seen in this illustration taken May 6, 2025. (Reuters File)
2 hours ago

CIA Review Finds Flaws but Does Not Dispute Finding Putin Sought to Sway 2016 Vote to Trump

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

Search

Send this to a friend