California Democrats propose tax changes for businesses
Democrats in the California Senate say they want to raise taxes on big businesses so they can cut taxes for small businesses SACRAMENTO, Calif. -- Democrats in the California Senate on Wednesday said they want to raise taxes on some of the largest corporations so they can cut taxes for nearly every other business. But the proposal was met with swift opposition from the business community and Democratic Gov. Gavin Newsom — highlighting the likely rocky budget negotiations ahead for a state facing an estimated $22.5 billion budget deficit. All California Business es pay a state tax rate of 8.84% on income, a figure that has not change d since 1997. This new proposal would create two tax rates for Business es in California. Companies would pay 6.63% on the first $1.5 million they make. Any money made above that would be taxed at 10.99%. The higher tax rate would only apply to about 2,500 companies and would bring in an extra $7.2 billion in revenue for the state. Meanwhile, about 1.6 mill...