YEAH.
WELL BASED ON MY VISUAL -- WILL
HAVE THE COMMITTEE SECRETARY
CALL ROLE IN A MINUTE BUT I
WOULD ENCOURAGE EVERYONE --
WITHIN THE SOUND OF MY BOY VOICE
WHO ARE MEMBERS OF THE SENATE
BUDGET FISCAL REVIEW COMMITTEE
TO COME TO THE HEARING ROOM.
POST HASTE POLICE YOU KNOW WE
HAVE -- GAVEL DOWN FOR FLOOR
SESSION AT TWO O'CLOCK.
AND TODAY'S PICTURE DAY.
I DON'T KNOW ABOUT ALL OF YOU
ALL BUT I DO NOT INTEND TO MISS
MY PICTURE OF THE SAND RIGHT
I'LL MISS TOM ON THIS OF MY
PICTURES SEE ALL THAT ARE CALLED.
SENATOR NIELSEN JUST THE MAN
I'VE BEEN WAITING.
FOR WE'LL GO AHEAD AND CALL
TODAY'S SENATE BUDGET FISCAL
REVIEW HEARING TO ORDER.
THANK YOU ALL. FOR BEING HERE
TODAY WE'RE GONNA ONLY HERE ONE
BILL AB.
NINETY ONE KNOWN AS THE LOOPHOLE
CLOSURE AND SMALL BUSINESS AND
WORKING FAMILIES TAX RELIEF TO
ACT OF TWENTY NINETEEN AB NINETY
ONE INCLUDES A SIGNIFICANT
EXPANSION TO OUR STATES E. I. T.
C. CREDIT.
INCLUDING PROVIDED AN EXTRA ONE
THOUSAND DOLLARS TO LOW. TO
QUALIFY LOW INCOME WORKING
FAMILIES WITH THE CHILD OR
CHILDREN UNDER THE AGE OF SIX IN
ADDITION THIS BILL EASES
ACCOUNTING BURDENS AND REDUCES
TAXES FOR SMALL BUSINESSES AND
CLOSE LOOPHOLES.
THAT RESULT IN ADDITIONAL
REVENUE TO THE STATE WITHOUT
RAISING TAXES ON THE MIDDLE
CLASS -- GOING TO HAVE THE
ADMINISTRATION COME FORWARD.
GO AHEAD AND CALL THE ROLL TO
ESTABLISH THE QUORUM.
CALL THE ROLL PLEASE THANK YOU.
SENATOR MITCHELL HERE NIELSEN.
WELL -- ALSO.
WERE TOGGLE.
JONES.
LEYVA.
MCGUIRE.
MY NAME.
HERE'S MORE LAW.
AROUND HERE.
PAN.
ROTH.
ENTER YOUR STONE STERN
[inaudible]
STONE.
NUMBER.
BY KASKI.
THANK YOU VERY MUCH A QUORUM HAS
BEEN ESTABLISHED COLLEAGUES I
APPRECIATE THE FACT THAT TODAY'S
HEARING WAS SCHEDULED RATHER
LAST MINUTE IS IMPORTANT TO KNOW.
THAT -- THE THE PRIMARY
COMPONENT TO THIS BILL WERE
PROPOSED IN THE GOVERNOR'S
JANUARY BUDGET IN ADDITION THE
MAJORITY THE LANGUAGE BEFORE US
TODAY HAS BEEN POSTED.
ON THE DEPARTMENT OF FINANCES
WEBSITE FOR MONTHS IN THESE
ISSUES WERE DISCUSSED.
IN TE SUB COMMITTEE
APPROXIMATELY TWO MONTHS AGO
WITH THAT WE'RE GONNA OPEN UP
FOR THE MANY STATE
ADMINISTRATION TO PRESENT GOOD
MORNING GOOD AFTERNOON AFTERNOON
AND THANK YOU MADAM CHAIR AND
I'M HERE WITH MY COLLEAGUES TO
CHAMBER ONE WHO'S THE HEAD OF
OUR REVENUE DEPARTMENT.
AT THE DEPARTMENT OF FINANCE I
WILL MAKE A COUPLE OF BRIEF.
COMMENTS ABOUT THE BILL BEFORE
YOU AND THAT WE ARE HAPPY TO
TAKE ANY QUESTIONS.
THE FIRST QUESTION THAT I WANT
TO ANSWER IS WHY PASS A
CONFORMITY BILL AT ALL.
AND THEY'RE BASICALLY THREE
REASONS FOR THIS THE FIRST IS
SIMPLICITY -- IT'S HARD ENOUGH
TO DO YOUR TAXES AND IT BECOMES
ESPECIALLY HARD WHEN YOU'RE
CALCULATING YOUR INCOME OR
DEDUCTIONS ONE WAY FOR FEDERAL
TAX PURPOSES AND ANOTHER WAY FOR
STATE TAX PURPOSES.
SO TO THE EXTENT THAT WE CAN
HAVE ONE SET OF RULES RATHER
THAN TWO IT MAKES SENSE TO
CONSIDER SOME OF THOSE CHANGES
AND THOSE ARE THE CHANGES BEFORE
YOU.
THE SECOND REASON IS FOR CLARITY
OFTEN WHEN PEOPLE ARE FILLING
OUT THEIR TAXES AND THERE ARE
DIFFERENT SETS OF RULES THAT MAY
MAKE ERRORS THOSE ERRORS ARE
COSTLY THEY TAKE TIME TO RECTIFY
OFTEN THE RESULT IN PENALTIES
FROM STATE OR FEDERAL TAX
AGENCIES.
SO WHEN YOU CONFORM WITH THE
FEDERAL TAX CODE ON CERTAIN
PROVISIONS IT REDUCES THE
PROBABILITY OF THOSE TYPES OF
ERRORS.
AND THEN THE THIRD REASON IS
POLICY -- MAKING CONFIRM THE
CHANGES THAT ARE PRUDENT OR
LOGICAL WE DON'T GENERALLY
REVISIT OUR TAX CODE EVERY YEAR
BUT EVERY COUPLE OF YEARS
INCLUDING WHEN THE FEDERAL
GOVERNMENT MAKE SOME CHANGES.
THAT IS OFTEN THE TIME FOR THE
LEGISLATURE AND THE GOVERNOR TO
LOOK AT THE TAX CODE AND CLOSE
ANY LOOPHOLES MAKE ANY CHANGES
TO PROTECT INDIVIDUALS AND SMALL
BUSINESSES.
ARE MOST VULNERABLE POPULATIONS
AND WE BELIEVE THE BILL BEFORE
YOU DOES ALL THESE THINGS.
INCLUDING AN EXPANSION OF THE
EARNED INCOME TAX CREDIT WHICH
WE THINK IS VERY IMPORTANT
PARTICULARLY FOR WORKING
FAMILIES LOW AND MIDDLE INCOME
FAMILIES IN CALIFORNIA.
SO WHAT WE'LL DO NOW IS --
BRIEFLY WALK THROUGH SOME OF
THESE ITEMS -- AND HAPPY TO TAKE
ANY QUESTIONS ABOUT ON THEM --
THAT'S ALL SEPARATE THEM INTO
TWO CATEGORIES THERE THOSE
PROVISIONS OF THIS BILL THAT
INCREASE REVENUE FOR THE STATE
ON NET.
AND THOSE PROVISIONS THAT
DECREASE REVENUE BUT ARE NONE
THE LESS GOOD PUBLIC POLICY. TO
THE PROVISIONS THAT INCREASE
REVENUE ARE LIMITING THAT
BUSINESS LOSSES THAT INDIVIDUALS
CAN TAKE TO OFFSET THEIR OTHER
INCOME I SEE NOTING A PORTENT
FACT ABOUT THIS PROVISION.
IT ONLY LIMITS BUSINESS LOSSES
IN EXCESS OF FIVE HUNDRED
THOUSAND DOLLARS FOR MARRIED
COUPLES SO THIS ONLY IMPACTS YOU
IF YOU HAVE OVER HALF A MILLION
DOLLARS OF WAGES OR OTHER
CAPITAL INCOME MORE INTERESTING
COMES TO OFFSET WITH ANY
BUSINESS LOSSES.
WE ALSO APPLY THE SAME FIVE
HUNDRED THOUSAND DOLLAR -- CAP
FOR MARRIED COUPLES TO OUR
LIMITS TO LIKE KIND EXCHANGES
AGAIN HERE CONFORMING WITH
FEDERAL LAW THIS IS A PROVISION
WHEN PEOPLE SELL A PRODUCTIVE
ASSETS.
AND PURCHASE ANOTHER ASSET THERE
OFTEN ABLE TO DEFER TAXES RATHER
THAN PAYING TAXES ON THAT GAME --
WE PROPOSE CONFORMING TO THE
FEDERAL PROBATION AND NOT
ALLOWING THAT WITH THE EXCEPTION
OF REAL PROPERTY -- IF YOU HAVE
FIVE HUNDRED THOUSAND DOLLARS OR
MORE IN INCOME.
WE ALSO ELIMINATE THE USE OF NET
OPERATING LOSS CARRY BACKS WE
ENSURE THAT BANK BIG BANKS THAT
ARE PAYING PREMIUMS FOR THE
FEDERAL DEPOSIT INSURANCE
CORPORATION FDIC.
IF THEY HAVE MORE THAN FIFTY
BILLION DOLLARS IN ASSETS THEY
SHOULDN'T BE ABLE TO DEDUCT
THOSE PREMIUMS AND NOT PAY TAXES
ON THOSE PAYMENTS WE CLOSE THE
EXECUTIVE COMPENSATION WILL POLL
WHICH PREVIOUSLY ALLOWED.
COMPANIES THAT PAY THEIR CEOS IN
EXCESS OF A MILLION DOLLARS TO
DEDUCT THAT COMPENSATION BY
STYLING IT AS A BONUS OR OTHER
PERFORMANCE BASED COMPENSATION.
AND WE CONFORM TO SOME NEW
FEDERAL RULES AROUND THE
TECHNICAL TERMINATION OF
PARTNERSHIPS AND SECTION THREE
THIRTY EIGHT ELECTIONS WHICH ARE
OFTEN USED FOR MERGERS AND
ACQUISITIONS IN THAT CASE ALSO
MAKING SURE THAT.
YOU CHOOSE THE SAME ELECTION FOR
STATE AND FEDERAL LAW.
SO THOSE ARE THE PROVISIONS GAIN
REVENUE LET ME BRIEFLY MENTION
THREE OF THE PROVISIONS THAT
LOSE REVENUE BUT ARE GOOD PUBLIC
POLICY -- ONE OF WHICH I'LL LET
MY COLLEAGUE GERRY TALK ABOUT IN
DETAIL.
THE FIRST IS LISTENING SOME
RESTRICTIONS ON THE
CONTRIBUTIONS INTO ABLE ACCOUNTS
SOME F YOU ARE FAMILIAR WITH
THESE ACCOUNTS IT STANDS FOR
ACHIEVING A BETTER LIFE
EXPERIENCE.
IS TO HELP PEOPLE AND FAMILIES
WHO HAVE SOMEONE WITH A
DISABILITY PAY FOR NECESSARY
EXPENSES TO THE FEDERAL TAX
REFORM LAW MADE SOME GOOD
CHANGES IN THIS AREA AND WE'RE
PROPOSING CONFORMING TO THEM.
THE SECOND IS AROUND STUDENT
LOANS -- OFTENTIMES WHEN THAT
PERSON WITH THE STUDENT LOAN HAS
A PERMANENT DISABILITY OR IF
YOU'RE SHE PASSES AWAY -- THAT
STUDENT LOAN CAN STILL BE PART
OF THEIR IS STATE OR PART OF
THEIR OBLIGATION SO HERE WE
CONFORM TO SOME CHANGES IN
FEDERAL LAW MAKING SURE THAT
THEY'RE NOT BEARING THAT BIRD
AND WHEN THEY ALREADY HAVE A
DISABILITY OR IF THEY HAVE
PASSED AWAY.
AND THIRD -- AND CERTAINLY NOT
LEAST SOME REALLY IMPORTANT
PROVISIONS AROUND PROTECTING
SMALL BUSINESS OWNERS AND MAKING
LIFE EASIER FOR THEM SO I WILL
LET MY COLLEAGUE JAY BRIEFLY
TALK ABOUT THAT.
GOOD AFTERNOON G. CHAMBERLAIN --
SO -- SMALL BUSINESSES AS AS
YOUR WHERE CAN STRUGGLE KEEPING
UP WITH PAPERWORK BURDENS THEY
DON'T HAVE THE SCALE THE LARGE
CORPORATION WOULD HAVE TO HAVE
AN ENTIRE DEPARTMENT OR EVEN A
SINGLE PERSON DEDICATED. TO
KEEPING UP WITH THE PAPERWORK
ISSUES SO IF WE DON'T ADOPT
CONFORMITY ON ON THIS ITEM WE
ARE GOING TO BE REQUIRED SMALL
BUSINESSES.
AND FRANCHISE TAX BOARD IS
ESTIMATED SYSTEM THIS IS A ROUGH
OVER THERE AND CREATED A BUT THE
BEST WAY TO THERE'S ABOUT SIXTY
THOUSAND SMALL BUSINESSES THAT
WOULD BE AFFECTED BY THIS
CONFORMITY ITEM -- WE'LL BE
REQUIRED THEM TO KEEP TWO SETS
OF BOOKS ONE FOR FEDERAL TAXES
AND ONE FOR STATE.
AND MORE IMPORTANTLY THE BOOKS
THAT THEY KEEP FOR THE STATE ARE
GOING TO BE MORE COMPLICATED TO
THEY'LL BE DOING ONE SET OF
BOOKS FOR THE FEDERAL GOVERNMENT
FAIRLY SIMPLE STRAIGHTFORWARD
AND THEN OFF TO A COMPLICATED.
SET OF CALCULATIONS TO DO THEIR
ATTACKS FOR CALIFORNIA.
SO DOES GIVE YOU A COUPLE
EXAMPLES OF THE ACCOUNTING
BURDENS THAT WILL THAT WOULD BE
EATING EAST BY CONFORMITY.
SO FIRST OF ALL -- WHAT THIS
WOULD DO AND AND WHAT IT DOESN'T
GENERALLY IS IT RAISES THE
THRESHOLD? FOR HOW MUCH GROCERY
C. TO COMPANY CAN HAVE BEFORE IT
HAS -- TO HAS TO USE MORE
COMPLICATED RULES GENERALLY THE
RULE RIGHT NOW IS FIVE MILLION
DOLLARS OF GROSS RECEIPTS -- AND
THIS THIS CONFORMITY WOULD RAISE
THAT THRESHOLD TO TWENTY FIVE A
TWENTY FIVE MILLION DOLLARS OF
COURSE YOUR SEATS -- SO RIGHT
NOW OUR SMALL BUSINESS HAS HAS
TO FIND WITH WITH FIVE MILLION
DOLLARS GROSS RECEIPTS IS
ALLOWED TO USE CASH ACCOUNTING.
TO IS FORCED WHEN IT COMES TO
ACCOUNTING FOR INCOME AND
EXPENSES RATHER THAN HAVE TO
LOOK AT COMPLICATED A CRUEL
RULES.
THEY CAN SIMPLY A CREW THE
EXPENSES AND THE INCOME OR ARE
THEY ARE COUNTY.
EXPENSES IN THE INCOME WHEN THEY
ACTUALLY OCCUR AND NOT WORRY
ABOUT.
YOU WOULD WAS SUBSTANTIALLY ALL
MOST WORK COMPLETED IN AND IT IS
A INCOME RELY -- LIKELY TO COME
ALL THOSE THIS IS A VERY CRUEL
RULES -- SO AND IN ADDITION OF
IN ADDITION TO A CRUEL VERSUS
CASH ACCOUNTING -- THERE'S THE
HOW DO THE WAY THE YOU CALCULATE
COST COULD SOLD -- RIGHT NOW YOU
WHEN YOU -- MOST MOST BUSINESSES
OR LARGE BUSINESSES HAVE TO
COUNT FOR COSTS COULD SOLD.
BY LOOKING AT WHAT THEY ACTUALLY
PURCHASED AND THEN COMPARING THE
BEGINNING AND ENDING VALUE OF
THEIR OF THEIR INVENTORY
[inaudible]
NOW.
TOM HOW YOU ACTUALLY DO THAT HOW
YOU ACTED TO COUNT FOR THE VALUE
OF YOUR INVENTORY CAN BE
SO WHAT THIS DOES IS IT SIMPLY
SAYS FOR FOR SMALL BUSINESSES.
WHICH AGAIN WOULD BE BUSINESS
WITH -- INCOME UP TO TWENTY FIVE
MILLION DOLLARS YOU SIMPLY HAVE
TO LOOK WHICH PURCHASES ARE.
AND THEIR OTHER THING SEARCHES
ALL HOW YOU TREAT LONG TERM
CONTRACTS AND HOW YOU CAPITALIZE.
YOU'RE THE THE COST INCLUDED IN
IN IN PRODUCING PRODUCTS THAT
YOU'RE GOING TO SELL SO IN ALL
THEIR IN THERE ARE -- THERE ARE
FIVE DIFFERENT RULES OF THIS
AFFECTS.
THAT WILL MAKE -- MAKE
BOOKKEEPING A LOT EASIER FOR
SMALL TEXTURES IN ADDITION IT
TENDS TO LOWER THE TAX LIABILITY
WHICH IS WHY -- THIS IS COURT AS
AS A REVENUE LOSS IT DID.
YEAH FIVE THAT'S GREAT AND AND
WE KNOW THAT A THE REASON THE
BUDGET YEAR THESE PROVISIONS
THAT MY COLLEAGUES SPEAKING
ABOUT WILL SCORE REVENUE LOSS OF
TWO HUNDRED EIGHTY MILLION
DOLLARS SO IT'S CERTAINLY NOT
CHEAP BUT WE BELIEVE AS PART OF
THIS CONFORMITY PACKAGE.
IN MAKES A LOT OF SENSE -- FOR
SMALL BUSINESS OWNERS AND PEOPLE
WHO WORK IN SMALL BUSINESSES.
I'LL COVE ONE LAST POINT --
WHICH IS A QUESTION THAT WE
SOMETIMES RECEIVE WHICH IS --
THE ADMINISTRATION HAS SAID AND
WE'VE HEARD FROM A NUMBER OF
FOLKS THIS FEDERAL TAX BUILDER A
LOT OF THINGS IN IT THAT A LOT
OF PEOPLE DON'T LIKE.
SO WHY CONFORM TO DISPEL IN
PARTICULAR AND OUR ANSWER TO
THAT IS TWO FOLD THE FIRST IS
THAT THIS IS NOT A FULL
CONFORMITY WITH ALL THE
PROVISIONS WERE ONLY CONFORMING
TO THOSE PROVISIONS.
THAT MAKES THESE SO FOR EXAMPLE
AS ALL OF YOU KNOW FOR THE
FEDERAL TAX BILL HAD A CAP ON
THE STATE AND LOCAL TAX
DEDUCTION WE'RE CERTAINLY NOT
DOING IN THIS CONFORMITY PACKAGE
ANYTHING RELATED TO THAT IN
TERMS OF THE DEDUCTIBILITY.
OF LOCAL TAXES BUT WHEN IT COMES
TO CLOSING LOOPHOLES THAT ALLOW
PEOPLE TO USE BUSINESS LOSSES TO
OFFSET KNOWING THAT DOLLARS IN
INCOME AND IN SOME CASES NOT PAY
ANY TAXES AT ALL WHERE AS YOU
AND I ARE PAYING TAXES ON OUR
WAGES.
THAT'S A LOOPHOLE THAT WE FEEL
COMFORTABLE CLOSING AND
CONFORMING WITH THE FEDERAL
ACTION.
AND THEN THE SECOND IS THE USE
OF THE REVENUE AND GET THE
FEDERAL TAX -- LEVEL THEY CLOSED
SOME THESE WILL POLLS BUT USE
THE REVENUE FOR THEIR OWN
PURPOSES HERE WERE PROPOSING
SPECIFICALLY TO PUT THE REVENUE
INTO THE EARNED INCOME TAX
CREDIT WHICH HELPS FAMILIES ALL
OF WHOM HAVE SOMEONE WHO WORKS.
ALL OF WHOM ARE IN INCOME UNDER
THIRTY THOUSAND DOLLARS AND TO
THE EXTENT WE'VE BEEN TRYING TO
BE VERY CAREFUL WITH OUR
ESTIMATES. TO THE EXTENT THERE
IS ANY ACCESS REVENUE AFTER WE
FIND OUR EITC THAT WILL HELP OUR
SCHOOLS UNDER PROPOSITION NINETY
EIGHT AND ALSO HELPS THEM REST
OF THE BUNCH ARCHITECTURE AND
BILL BUDGET RESILIENCY.
SO THAT'S THE GENERAL PACKAGE
AND HAPPY TO TAKE ANY QUESTIONS.
THANK YOU VERY MUCH AND WITH
THAT MEMBERS.
MISTER MOORE Là FOLLOWED BY --
SENATOR OFF CENTER MORE LOT
THANK YOU MANAGER.
I'M JUST CURIOUS HOW MUCH WE
SPENDING CURRENTLY EACH YEAR ON
THE EARNED INCOME TAX CREDIT.
SO IN THE CURRENT TWENTY
EIGHTEEN BUDGET ACT IT'S ABOUT
FOUR HUNDRED MILLION DOLLARS AND
THEN.
WE WANT TO SPEND THEN ONE POINT
SIX TO TWO BILLION THEN SO UNDER
AT THIS BILL WE WOULD ESTIMATE
IT WOULD GO DAY TAX CREDIT EITC
WOULD GO FROM FOUR HUNDRED
MILLION TO ONE BILLION.
SO BASICALLY BE A TWO AND A HALF
TIMES INCREASE AND THEN YOU'RE.
EXPECTING TO GET.
A LOT MORE THAN ONE BILLION FROM
THIS PARTICULAR.
CALLER TRAILER BILL -- CURRENT
ESTIMATE IS IN THE BUDGET YEAR
ONE POINT SIX BILLION BUT SOME
OF THAT HAS TO DO SIMPLY WITH
THE TIMING OF THIS PACKAGE IN MY
CALL I CAN.
SPEAK ABOUT THAT OVER THE LONGER
TERM WERE EXPECTING ONE POINT
THREE BILLION DOLLARS IN ONGOING
REVENUE.
SO THEN WHY WASN'T SIX HUNDRED
MILLION TO SET ASIDE AND THE
BUDGET.
WHY ARE WE DOING?
A TAX INCREASE TO WE WE WE COULD
HAVE PAID FOR IT RIGHT OUT OF
THAT. TWENTY ONE AND A HALF
BILLION I'M I I'M JUST CURIOUS.
TO WE FELT MOST OF THAT TWENTY
ONE AND A HALF BILLION IS ONE
TIME AND WHEN IT COMES TO THE
EITC -- THE T. C. THAT HAS BEEN
AROUND AT THE STATE LEVEL FOR
SEVERAL YEARS AT THE FEDERAL
LEVEL FOR SEVERAL DECADES.
AND WE SEE THIS AS A PROGRAM
THAT NOT ONLY IS IMPORTANT
GENERALLY ON GOING BUT WHEN
THERE IS.
SOME TYPE OF FISCAL DISASTER OF
AND THAT'S WHEN PEOPLE OFTEN ARE
RELYING ON THESE TYPES OF
PROGRAMS EVEN MORE SO WE WANT TO
PUT IT ON AS SOUND A PHYSICAL
BASIS AS POSSIBLE.
AND THEN LAST QUESTION THE
PERSONAL LIKE KIND EXCHANGE
RULES.
WE'RE GETTING RID OF FOUGHT TO
PUSH BACK FROM AUTO MAKERS.
WHO WHAT SHOULD OUR RESPONSE BE?
TO BASICALLY I THINK THERE ARE A
COUPLE THINGS THAT YOU COULD SAY
NUMBER ONE IS THAT.
VERY BROADLY THIS IS THE SAME
CHANGE THAT WE ARE SEEING AT THE
FEDERAL LEVEL SO WE'RE SIMPLY
ADOPTING THEIR RULES AND FACTS
ARE RULES ARE A LITTLE BIT MORE
LOOK RELAXED AND THERE IS
BECAUSE WE ARE SAYING.
THIS ONLY APPLIES TO YOU IF YOU
HAD IN COMMON OF HALF A MILLION
DOLLARS OR MORE IF YOU'RE
MARRIED WHEREAS AT THE FEDERAL
LEVEL THERE IS NO LIMIT BUT
EXCEPT WITH THE EXCEPTION FOR
REAL PROPERTY WHICH WE ALSO
ADOPT.
SOMETHING THAT'S ONE THING YOU
CAN SAY I THINK THE SECOND THING
IS WE DON'T SEE THIS NECESSARILY
HAVING A LARGE IMPACT ON THE
LEASING OR VEHICLE MARKET AND MY
COLLEAGUES HAPPY TO TALK.
MORE ABOUT THAT.
AND THEN I THINK THE THIRD IS
THAT GENERALLY THE REASON THAT
THE FEDERAL GOVERNMENT ADOPTED
THIS ROLE AND THE REASON THAT WE
ARE ADOPTING A VERSION OF IT.
IS WHEN YOU TO SELL A PRODUCTIVE
ASSETS TAX SHOULD BE DUE ON IT
SO WHEN YOU'RE NOT PAYING TAXES
ON IT THOUGH THAT'S TAX REVENUE
THAT SOMEBODY ELSE HAS TO PAY SO
WE THINK.
THIS IS REALLY THE FAIREST
POLICY HERE I SHOULD ALSO NOTE
SPECIFICALLY RELATED TO AUTO
MAKERS THAT WE DISCUSSED OUR CAP
AND TRADE PROGRAM LAST WEEK IN
COMMITTEE.
AND THERE ARE A NUMBER OF
PROGRAMS TOTALING HUNDREDS OF
MILLIONS OF DOLLARS THAT ARE
DESIGNED TO SUPPORT.
THE INDUSTRY AND THE
INTRODUCTION OF CLEAN VEHICLES
IN PARTICULAR.
THANK YOU THANK YOU MANAGER --
CETERA.
THANK YOU MADAM CHAIR WITH
REGARD TO THAT YOU KNOW I'M NOT
AN ACCOUNTANT.
NORA MY TAX LAWYER.
BUT SOMEONE ASSERTED WITH
RESPECT TO THIS AUTO MOTOR
VEHICLE LEASING SITUATION THAT.
ON THE FEDERAL SIDE WITH THE THE
REQUIREMENT THAT DEPRECIATION
CAPITAL GAIN LOSS BE RECOGNIZED
ON THE TRANSFER OF THE OF THE
FORMALLY LIKE KIND S. SENATE.
ON THE FEDERAL SIDE THERE'S NOW
BEEN BUILT IN AND MEETING THE
MEDIA EXPENSE PROVISION THAT
ALLOWS.
ON THE ACQUISITION OF THE NEW S.
AT THAT THE VALUE BE IMMEDIATELY
EXPRESSED I DON'T KNOW IF THAT'S
TRUE OR NOT BUT IF THAT'S TRUE.
THEN THAT CREATES A LITTLE WE'VE
WE'VE TAKEN ONE SIDE OF TAX
CONFORMITY BUT NOT THE OTHER
SIDE IS THAT TRUE.
SO I CAN SPEAK REFER TO THAT AND
JAY AT YOU CAN SO SO IT IS.
THE CONFORMITY PACKAGE AS I
MENTIONED IS A PARTIAL
CONFORMITY PACKAGE SO WE'RE NOT
CONFORMING TO EVERYTHING AND I
THINK.
SOME PEOPLE COULD LOOK AT OUR
CONFORMITY PACKAGE AND SAY HEY
YOU ARE TAKING THIS ITEM BUT NOT
THAT ITEM AND THAT IS.
BROADLY TRUE FOR EXAMPLE THAT
FEDERAL GOVERNMENT.
THE LARGE -- PART OF THEIR TAX
REFORM WAS A VERY BIG CORPORATE
TAX CUTS AND YOU CAN SEE IN OUR
PACKAGE WE DO NOT CAUGHT THE
STATE CORPORATE TAX RATE.
SO WHAT WE BASICALLY DECIDED THE
ADMINISTRATION THE GOVERNOR IS
THAT IT MAKES SENSE TO SAY THAT
WITH THE EXCEPTION OF REAL
PROPERTY BECAUSE THAT'S WHAT
THEY DID AT THE FEDERAL LEVEL.
WHEN YOU SELL AN ASSET JUST
BECAUSE YOU'RE BUYING ANOTHER?
ONE YOU SHOULD BE ABLE TO DEFER
YOUR TAXES ON THAT SALE AND
OFTEN THERE IS A GAME HERE
BECAUSE THAT ASSET EVEN THOUGH
IT HAS SIGNIFICANT VALUE HAS
BEEN DEPRECIATED A LOT.
UNDER EXISTING RULES OFTENTIMES
OR SOMETIMES DEPENDING ON THE
INDUSTRY ALL THE WAY DOWN TO
ZERO SO PEOPLE ARE DEPRECIATING
OR EXPENSING AT THE FEDERAL
LEVEL -- THEY GET THE FULL
DEDUCTION AND THEN WHEN THEY
SELL THE ASSET THEY WANT THE
SAME LIKE KIND EXCHANGE
TREATMENT AT THE STATE LEVEL WE
DON'T NECESSARILY THINK THAT
MAKES SENSE THE WORKERS WERE
ASSUMING THAT TRANSACTION IS AT
THE INDIVIDUAL LEVEL.
AS OPPOSED TO FORD MOTOR CREDIT
OR GM.
CREDIT AND AND I DON'T PROFESS
TO UNDERSTAND HOW THOSE
ARRANGEMENTS WORK.
BUT IF IN FACT YOU WILL YOU
FORCED DEPRECIATION GAIN AND
LOSS RECOGNITION.
AND YOU DO NOT ALLOW ME X.
EXPENSING OF THE OF THE NEWLY
ACQUIRED A SAID I COULD SEE HOW
THAT MIGHT FROM A NON TAX LAWYER
NOT ACCOUNT STANDPOINT.
DRIVE UP THE COST OF THE LEASE
PACKAGE WHICH WOULD INTENT OF
WHICH WOULD IN TURN.
PERHAPS BE PASSED ON TO THE
CONSUMER LISTEN I'M GOING TO
SUPPORT THIS TODAY.
MY CONCERN IS WITH THAT WAS WITH
ITEM TEN ON ORIGINS A LIKE KIND
EXCHANGE IS AND I'M CONCERNED
ABOUT THE POTENTIAL IMPACT ON
OUR STATE.
ELECTRIC VEHICLE PROGRAMS WHICH
YOU KNOW AND MY COLLEAGUES KNOW
WE'VE SPENT AN AWFUL LOT OF
TIME AND ATTENTION.
ON SINCE I FIRST JOINED THIS
HOUSE IN TWO THOUSAND THIRTEEN
SO.
AS THIS BILL.
PROBABLY MOVES OUT OF HERE AND
MOVES ON AND AFTER I WOULD ASK
THAT THE ADMINISTRATION WORK
WITH THE GLOBAL AUTO
MANUFACTURERS TO SEE IF WE CAN
ADDRESS.
ANY POTENTIAL ADVERSE IMPACT.
ON OUR STATE ELECTRIC VEHICLE.
LEASING PROGRAMS BECAUSE YOU'D
IF THE PRICE OF A BOLT IS GOING
TO GO FROM EIGHTY NINE DOLLARS A
MONTH 220-023-0020 NINE DOLLARS
A MONTH TO FOUR HUNDRED AND
TWENTY FIVE DOLLARS A MONTH.
THAT MIGHT DRIVE DOWN.
THE NUMBER OF ELECTRIC VEHICLES
THAT WERE ACTUALLY ABLE TO ROLL
OUT OUR ROADS WHICH WOULD.
BE SORT OF COUNTER TO OUR STATE
POLICIES HERE I'M NOT SAYING
IT'S TRUE BUT I'M ASKING THE
ADMINISTRATION TO TAKE A LOOK AT
THAT WITH THE OTTOMAN
MANUFACTURES TO SEE IF IN FACT.
THE FAILURE TO INCLUDE IMMEDIATE
EXPENSING IF TRUE WILL HAVE HAS
AN IMPACT ON THESE LEASE
ARRANGEMENTS THANK YOU MANAGER
THANK YOU SIR SENATOR PAN.
THANK YOU SO MUCH FOR YOUR
PRESENTATION AND NOW I'M ON MY
FAMILY WERE SMALL BUSINESS
OWNERS -- I KNOW WHO.
IT'S RIVER GOING THROUGH -- OUR
TAXES AND TALKING TO THE WORKING
WITH ACCOUNTANTS SO FORTH.
SO -- AS A SMALL BUSINESS OWNER
I JUST WANT TO ASK -- AND WE
OFTEN TAUGHT IN ANYWAYS -- WHO
WOULD BE ACCURATE TO SAY THAT TO
MANY OF THE PROVISIONS HERE
WOULD ACTUALLY SIMPLIFY -- OUR
TAXES -- THAT WOULD REDUCE
POTENTIALLY EVEN SOME PERHAPS I
WANT MY ACCOUNT MAY NOT BE HAPPY-TO HEAR THIS BUT ACTUALLY REDUCE
SO MY COUNTY COSTS WHEN I DO MY
TAXES.
WOULD THAT BE AN ACCURATE
REFLECTION OF SOME OF THESE
PROPOSALS -- AS A SMALL BUSINESS
OWNER.
YES I WOULD SAY IT REDUCES BOTH
YOUR ACCOUNTING COSTS AND YOUR
ACTUAL TAX LIABILITY IN MANY
CASES AND SO BASICALLY THE
PROVISIONS THAT MY COLLEAGUE WAS
DISCUSSING.
RIGHT NOW ARE AVAILABLE FOR YOUR
SMALL BUSINESS IF YOU HAVE UP TO
FIVE MILLION DOLLARS IN REVENUE
AND THIS WOULD BASICALLY TAKE
THAT TO TWENTY FIVE MILLION OF
COURSE FIVE MILLION SOUNDS LIKE
A LOT BUT YOU KNOW YOU COULD BE
RUNNING WHATEVER SMALL BUT YOU
COULD HAVE A NUMBER.
OF EMPLOYEES YOU'RE STILL NOT A
BIG CORPORATION YOU STILL DON'T
HAVE ACCESS TO ALL THE
BOOKKEEPING AND INTERNAL ONE
AUDITING RESOURCES THAT THEY HAD.
SO THIS WOULD REDUCE THAT BURDEN
IN THE COST OF GOING THROUGH ALL
OF IT AND THEY WOULD LIKELY PAY
LESS IN TAXES AS WELL AS A
RESULT OF MOVING FROM A CRUEL TO
A CASH ACCOUNTING METHOD.
OKAY SO I THINK THAT'S A VERY
IMPORTANT POINT THE OTHER THING
IS I WOULD WELL CERTAINLY THAT
PARTICULAR PROVISION FOR SMALL
BUSINESSES WELL -- SAY SMALL
BUSINESS MONEY AND ACTUALLY AND
AND AND AND DOES DECREASE AS YOU
MENTIONED SOME OF THE REVENUE
COMES THE STATE EVEN THE
PROVISIONS THAT INCREASED
REVENUE TO THE STATE -- THE FACT
THAT WE NOW ARE -- I GUESS IN
LINE WITH SOME OF THE CHANGES
AGAINST VERY SELECTIVELY IN LINE
WITH FELT THAT WITH WOULDN'T
THAT ALSO REDUCE SOME OF THE
BURDENS ON BUSINESSES.
AND REGARDS -- TO BOTH
ACCOUNTING BOOKKEEPING AND AS
WELL AS TO TAX FILINGS WOULD YOU
WOULD YOU WOULD THAT BE AN ACTOR
TO ASK.
YES THAT'S CORRECT OKAY SO IT SO
I THINK AGAIN SOMETHING TO KEEP
IN MIND THAT YOU KNOW EVEN AS WE
LOOK AT SOME OF THESE PROVISIONS
WHICH ACTUALLY HAVE BEEN DECIDED
BY OUR FEDERAL -- PARTNERS SOME
OF WHICH WE MAY AGREE OR NOT HE
BY MEANS THE PARTICULAR
PROVISIONS WE'VE SELECTED -- ARE
WOULD EACH OF THEM -- ACTUALLY
HELP -- ACTUALLY DECREASE SOME
OF THE BURDEN ON BUSINESSES WHO
HAVE WHO HAVE TO DEAL WITH THIS
PARTICULAR ISSUES IS THAT
CORRECT YES THAT'S CORRECT ALL
RIGHT WELL I THINK THAT'S A VERY
POSITIVE THING HERE I KNOW.
SOME PEOPLE ARE CHALLENGE WITH
THE WORD CONFORMITY -- ANYTHING
MORE ACTUALLY THIS IS -- PERHAPS --
BOTH TAX SIMPLIFICATION AS WELL
AS SELECTIVE ALIGNMENT -- THAT --
MEETS OUR POLICY GOALS -- AND IS
CERTAINLY YOU -- WITH HER
SUPPORT FOR THIS PROVISION ALONG
THOSE LINES THANK YOU.
THANK YOU AND SENATOR PAN THAT'S
WHY OUR AGENDA REFLECTS ITS
CURRENT NAME WHICH IS THE
LOOPHOLE CLOSURE AND SMALL
BUSINESS AND WORKING FAMILIES
TAX RELIEF ACT OF TWENTY
NINETEEN CONFORM HE'S NOT
REFERENCE IN THERE AT ALL I
THINK FOR JUST THOSE REASONS.
SENATOR NIELSEN.
INDEED I CAN CONCUR WITH YOUR
ASSESSMENT.
SURE OF THE TITLE.
BUT AS TO THE OVERALL DEAL.
THIS ISN'T THROUGH EXPLICIT.
CONFORMITY AND SELECT OR
TARGETED CONFORMITY IS IT NOT.
THAT'S CORRECT AND BASED ON THE
RATIONALE IS THAT YOU'VE
PRESENTED HERE [inaudible]
GOING [inaudible]
FORWARD.
IN THE SOME OF THIS MONEY WILL
BE INTO THE GENERAL FUND WILL BE
SPENT ON WHATEVER.
IN THE GENERAL FUND.
LONG TERM SAY. TO BUDGET CYCLES.
WILL THIS HAVE A PLUS -- A
NEGATIVE IMPACT [inaudible]
ON ONGOING EXPENDITURES THE BASE.
THE BASE THE CALIFORNIA BASED
TAX.
WE GO UP DO WE GO DOWN WE STAY
NEUTRAL.
SO OUR BEST ESTIMATE RIGHT NOW
IS IT WILL HAVE A POSITIVE
EFFECT OF A COUPLE HUNDRED
MILLION DOLLARS BUT I SHOULD
POINT OUT THAT THIS WOULD BE A
NEW PROGRAM SET UP PROGRAMS --
SO WE'RE GOING TO BE WATCHING
THE REVENUE ESTIMATES IF THIS
PASSES VERY CLOSELY AND WE WILL
UPDATE ACCORDINGLY [inaudible]
THANK YOU [inaudible]
BROUGH.
HI MOM IN GOING THROUGH THIS.
AND YOU GAVE HER THINK YOU DID.
GIVE SOME AMOUNT I'D LIKE TO
KNOW WHAT IS THE IMPACT ON
REGULAR CALIFORNIANS OUT THERE
LIKE -- AND THE MAYBE IT'S BY
VIRTUE OF HOW MANY.
HOW MANY PEOPLE WOULD BE
IMPACTED OR HOW MANY BUSINESSES
WOULD BE IMPACTED BUT?
WHAT DO THESE BIG NUMBERS
TRANSLATE INTO?
AS FAR AS THE NUMBER OF
CALIFORNIANS THAT YOU COULD BEST.
ESTIMATE WOULD BE IMPACTED I'M
I'M NOT ASKING NEGATIVE OR
POSITIVE BUT WOULD BE IMPACTED
BY IT SO IF YOU COULD GIVE SOME
AMOUNT FOR THEM SO THAT --
EARNED INCOME TAX CREDIT WHAT'S
THE APPROXIMATE NUMBER.
ALL AFFECTED BY EITC SO WE'RE
EXPECTING IF THIS BILL WERE TO
PASS THAT THE NUMBER OF
HOUSEHOLDS RECEIVING THE EITC
WOULD GO UP BY A MILLION SO
CURRENTLY IT'S TWO MILLION AND
WE'RE EXPECTING YOU WOULD GO TO
THREE MILLION.
SO FROM ONE TO THREE MILLION TWO
MILLION TO THREE MILLION I'M
SORRY TWO TO THREE MILLION.
WOULD BE THE IMPACT -- AND SOME
OF THE USER COULD BE REALLY
MALL NUMBERS BUT THE NEXT ONE
TO BE IN A BETTER LIFE
EXPERIENCE ACCOUNTS.
SO I BELIEVE THAT IS AROUND ONE
MILLION DOLLARS IN TOTAL -- BUT
THAT'S SOMETHING THESE ACCOUNTS
ARE PRETTY NEW THEY WERE ONLY
AUTHORIZED BY FEDERAL
LEGISLATION A COUPLE YEARS AGO
SO THAT IS SOMETHING THAT COULD
GROW OVER TIME OKAY.
THE STUDENT LOAN DEBT.
THAT IS ALSO.
THAT'S ALSO IN THE NEIGHBORHOOD
OF ABOUT A MILLION DOLLARS
[inaudible]
THAT'S NEW YES.
OKAY -- THE IF IDEA IF THE I SEE
PREMIUMS SAID THAT WE WOULD HAVE
THAT -- ABOUT SIXTY FIVE MILLION
DOLLARS OF REVENUE GAINS.
AND AGAIN THAT -- IT ONLY
AFFECTS BANKS WITH MORE THAN TEN
BILLION DOLLARS OF ASSETS SO
ONLY LARGER BANKS. THIRTY DRAWS
ON THE CLEAR FIGHT WAS YOUR
QUESTION HOW MANY PEOPLE
IMPACTED NOT THE PRICE TAG RIGHT
RIGHT RIGHT OKAY SO -- THANK YOU
YES SO ON ABLE AND STUDENT LOANS
WE SHOULD GET THAT WILL HAVE TO
CHECK I THINKRIGHT NOW THERE'S
THERE'S A THOUSAND ABLE ACCOUNTS
RIGHT NOW BUT THAT AS AS MY
COLLEAGUE MENTIONED THAT COULD
BE GROWING.
SO KINDLY BUT OKAY AS FAR AS THE
THE STUDENT LOAN DEBT LOAN DEBT
I DON'T HAVE ANY NUMBERS IT'S IT.
CAN BE FAIRLY SMALL NUMBER --
BUT I DON'T HAVE.
HAVE ANY DATA ON THAT AND THE
PREMIUMS.
WE HAVE TO LOOK UP THE NUMBER OF
BANKS YEAH I I I RECALL NUMBER%
ABOUT FIVE HUNDRED OR SO MIGHT
BE AFFECTED BY THIS BUT BUT LET
ME LET ME GET BACK TO ON OKAY --
EXCESS EMPLOYEE COMPENSATION.
SO IS THAT FOR THE FOR THAT
HOWEVER YOU MIGHT MEASURE IT I
JUST WANT TO GET A YEAH FOR THE
CEO COMPENSATION THIS IS
BASICALLY THERE ARE DISCLOSURE
RULES FOR PUBLIC COMPANIES THE
GENERAL DISCLOSURE FIVE HIGHEST
PAID OFFICERS.
AND AMONG THE TWO HUNDRED
HIGHEST PAID CEOS LAST YEAR AND
THAT MEDIAN CEO RECEIVED
EIGHTEEN POINT SIX MILLION.
DOLLARS SO BASICALLY FOR THESE
COMPANIES THAT PAY THEIR CO MORE
THAN A MILLION DOLLARS THEY
COULD CONTINUE TO DO THAT OF
COURSE THEY WOULD JUST HAVE TO
PAY TAXES -- AND NOT COUNT THAT
AS A BUSINESS EXPENSE ABOUT THE
MILLION DOLLARS BUT WE CAN
FOLLOW UP ON THE EXACT NUMBER
THAT WE ESTIMATE.
OKAY -- THE IN A WELL THE KERRY
BACKS.
SO THAT MIGHT BE HARD TO
ESTIMATE RIGHT IT WOULD BE.
YEAH HI I FIVE DON'T HAVE THE
DATE I THINK WE MIGHT BE ABLE TO
GET THAT YEAH.
OKAY -- AND YOU MENTIONED SMALL
BUSINESSES THAT'S ABOUT SIXTY
THOUSAND DOLLARS THAT'S A ROUGH
ESTIMATE YEAH ABOUT.
SIXTY THOUSAND NON CORPORATE
BUSINESS LOS LIMITS.
THERE BASED ON THE MOST RECENT
DATA -- WE ARE ESTIMATING THAT
THAT WILL AFFECT AROUND TEN OR
ELEVEN THOUSAND HOUSEHOLDS OKAY.
TECHNICAL TERMINATION OF A
PARTNERSHIP.
HAVE.
HELLO YOU HAVE NO IDEA.
LIKE KIND EXCHANGE RULES THIS IS
MORE THE INCIDENT DORADO I'M
LOOKING HERE -- ARE -- BUT TO
STAFF DIRECTOR HAS AGREED THAT I
THINK CAST SOME OF THESE NUMBERS
YOU'RE LOOKING FOR OKAY AND SO
WE'LL SHARE IT WITH YOU AS WELL.
FOR THOSE THAT DID THAT --
FINANCE DOESN'T HAVE THE ANSWER.
TO OKAY THANK YOU VERY MUCH.
THANK YOU FOR THE TO SKINNER
FOLLOWED BY SENATOR STONE.
THANK YOU I JUST WANTED TO
ADDRESS THE ISSUE OF IF WE WERE.
TO ENACT.
MAKE OUR RULES.
COMPARABLE TO ALL OF THE FEDERAL
OR TRUMP TAX ADJUSTMENTS SO FOR
EXAMPLE.
THERE ARE MANY CALIFORNIANS
UNFORTUNATELY DUE TO OUR VERY --
HIGH COST OF HOUSING NOW
[inaudible]
THAT.
HAVE BEEN NEGATIVELY IMPACTED.
BY THE FACT THAT THE LAST -- DID
THIS FEDERAL TAX ACT PUT A LIMIT.
ON THE AMOUNT OF MORTGAGE
INTEREST YOU COULD DEDUCT.
SO IF WE WERE TO CONFORM WITH
THAT WE WOULD BE DOUBLE WHAMMY
HITTING CALIFORNIANS SO I'M VERY
PLEASED THAT THE ADMINISTRATION
CHOSE NOT TO RECOMMEND
CONFORMING WITH THAT AS JUST ONE
EXAMPLE.
THANK YOU FOR INTEREST ON THANK
YOU.
CAN YOU -- TALKED A LOT ABOUT
THE OPPORTUNITIES OWNS AND THIS
IS OBVIOUSLY -- A VERY --
FAVORITE MODALITY RIGHT NOW FOR
INVESTORS AND SEARCHING OUT
OPPORTUNITIES OWNS AND I
UNDERSTAND THE FEDERAL TAX
BREAKS TO COME ALONG WITH THAT --
BEFORE WE ENTERTAIN THIS THIS
BILL WHAT IS THE PRESENT -- TAX
BENEFITS FOR CALIFORNIANS AND
INVEST IN OPPORTUNITIES ON IF
ONE EXISTS AND IF SO WHAT WE
TAKING AWAY.
YES SO THE OPTION IS OWNS OUR
NEW VEHICLE THEY WERE ONLY
CREATED AND THAT FEDERAL TAX
BILL.
SO THERE'S BEEN A NUMBER OF
CONVERSATIONS AROUND HOW
CALIFORNIA CAN ADD ADDITIONAL
INCENTIVES THAT ONLINE IN SOME
WAYS WITH WHAT'S IN THE FEDERAL
BILL.
SO THOSE DISCUSSIONS BECAUSE WE
HADN'T SETTLED ON ACONCLUSION
YET THEY'RE NOT IN THE BILL
BEFORE YOU BUT THE
ADMINISTRATION IS COMMITTED TO
WORKING WITH THE LEGISLATURE AND
TRYING TO GET SOMETHING DONE ON
THIS ISSUE BEFORE THE END OF THE
YEAR.
OKAY SO YOU ARE LOOKING TO HAVE
SOME TAX BREAKS.
TAX BREAKS ALONG WITH THE
OPPORTUNITIES ON FEDERAL ACT
ALTHOUGH I SHOULD SAY THE
ADMINISTRATION'S POSITION
WOULDN'T BE A COMPLETE
CONFORMITY AND THAT SIR -- BUT
BUT SOME TYPE OF PROGRAM WHERE
WE SEE THIS AS A AS A WAY TO
HOPEFULLY ALLOW US TO ACQUIRE
LAND AND PROVIDE AFFORDABLE
HOUSING.
THROUGH THIS THIS THIS MECHANISM
AND I DON'T KNOW IF WE WERE
GONNA BE STIFLING THAT EFFORT OR
NOT SO.
APPRECIATE A CLARIFICATION ON
THAT.
THANK YOU COLLEGE ANY FURTHER
QUESTIONS -- THANK YOU FOR THAT
WILL OPEN UP FOR PUBLIC COMMENT.
GOOD AFTERNOON JENNIFER BAKER
WITH THE CALIFORNIA TEACHERS
ASSOCIATION PLEASED TO SUPPORT
THE FEDERAL CONFORMITY ITEMS IN
THE MEASURE AND APPRECIATE THAT
POSITIVE IMPACT WILL HAVE ON
THAT NOT ONLY THE GENERAL FUND
BUT MORE IMPORTANTLY FOR OUR
STUDENTS FOR UP PROP NINETY
EIGHT AS WELL.
THANK YOU NEXT WITNESS.
GOOD AFTERNOON DIPPING ACNES
WITH THE CALIFORNIA IMMIGRANT
POLICY CENTER.
WE'RE DEEPLY CONCERNED AT THE
EXCLUSION OF IN MARIN TAX FILERS
TO FALL WITH AN INDIVIDUAL TAX
IDENTIFICATION NUMBER.
AND AB NINETY ONE ODD THEY
CONTRIBUTE OVER AROUND THIRTY
BILLION DOLLARS HERE IN STATE
AND LOCAL TAXES IN THE ARE
EXCLUDED FROM THE PROSPERITY
WHICH THEY HELP TO GENERATE.
AB NINETY ONE WILL EXCLUDE TWO
HUNDRED THOUSAND CHILDREN OR
MORE -- AND WE'RE DEEPLY
CONCERNED BECAUSE THERE POVERTY
RATES OFTENTIMES.
DOUBLE THAT IN IMMIGRANT
HOUSEHOLDS AND IT IS A NON
IMMIGRANT WORKING HOUSEHOLDS AND
CONSIDERING THAT ON THERE WILL
BE CONSIDERABLE I REVENUE GAINS
WITH TAX CONFORMITY WE DO THINK
THAT I'M INCLUDING AYE TEN
FATHER'S IS A REASONABLE THING
FOR CALIFORNIA TO DO.
THANK YOU THANK YOU NEXT WITNESS.
CHRIS FOR SIGNS OF THE CHIRLA
COLLEGE OF REMAINING RIGHTS
ECHOING THE COMMENTS OF MY
COLLEAGUE EXPRESSING A CONCERN
REGARDING THE EXCLUSION OF I TEN
FILERS.
ARE SPECIFICALLY JUST TO
HIGHLIGHT -- A LOT OF THESE AYE
AYE TEN FILERS HAPPEN TO WORK IN
INDUSTRY SUCH AS THE GARMENT
INDUSTRY CAR WASH INDUSTRY --
DAY LABOR INDUSTRY DOMESTIC
WORKER INDUSTRY WHICH CONTRIBUTE
YOU KNOW BILLIONS OF NOT
MILLIONS OF DOLLARS TO THIS TARA
ECONOMY SO THAT'S FAR WHY WE
HAVE A CONCERN POSITION THANK
YOU NEXT WITNESS.
MADAM CHAIR MICRO WITH WESTERN
CENTER ON LAW AND POVERTY WE
STAND IN SUPPORT OF THE
CONFORMITY PACKAGE TODAY WE'RE
VERY PLEASED WITH THE INCREASES
IN AND EARNED INCOME TAX CREDIT.
THAT WILL BENEFIT LOW WAGE
WORKERS THROUGHOUT CALIFORNIA
AND WE ALSO SHARE THE CONCERNS
OF OUR COLLEAGUES -- FROM CHIRLA
AND OTHER ORGANIZATIONS WHO
WOULD LIKE TO SEE THE AYE TENS
INCLUDED MORE OPEN AS WE MOVE
FORWARD -- IN COMING MONTHS OR
YEARS THAT WILL BE ABLE TO DO
JUST SO THANK YOU THANK YOU NEXT
WITNESS.
GOOD AFTERNOON ON A HOUSE OF
LEAD WITH UNITED WAYS OF
CALIFORNIA ALSO ON BEHALF OF THE
CHILDREN'S DEFENSE FND OF
CALIFORNIA WELL WE APPRECIATE
THE MAGNITUDE OF THE POLICY PUT
FORWARD -- IN THIS BILL TODAY --
AND THE ADVANCES SPECIFICALLY TO
CALLIE ITC -- AND THE IMPACT
THIS WILL HAVE FOR WORKING
FAMILIES WE MUST DRAW ATTENTION
AS SOME OF MY COLLEAGUES HAVE TO
THE EXCLUSION TO CONTINUE TO
EXCLUSION OF THE I. TEN FILERS.
THEY'RE FILING WITH A FEDERALLY
ASSIGNED INDIVIDUAL TAX
IDENTIFICATION NUMBER THEY'RE
PLAYING BY THE RULES THERE
WORKING HARD AND THEY'RE FILING
THEIR TAXES AND YET THEY ARE NOT
BEING INCLUDED.
IN THIS PROPOSAL AND WHILE IT IS
ROBUST AND IT WILL DO GREAT
THINGS FOR MANY FAMILIES -- THE
FAMILIES THAT WILL BE CONTINUE
TO BE EXCLUDED OF OUR OF ARE OF
GREAT CONCERN TO OUR NETWORK --
INTO OUR COLLEAGUES AT
CHILDREN'S DEFENSE FUND THANK
YOU.
NEXT WITNESS.
HELLO CHAIR NUMBERS THE
COMMITTEE TERRY ONLY WITH
ECONOMIC SECURITY PROJECT ACTION
I WANT TO STAND IN STRONG
SUPPORT OF THIS PROPOSAL I KNOW
IT'S IN VERY COMPLICATED.
TO MAKE CONFORMITY CLOSING
LOOPHOLES AND EITC EXPANSION
HANG TOGETHER I THINK OVERALL IT
IS A REALLY GREAT PACKAGE I DO
WANT TO ECHO CONCERNS AROUND A
COUPLE OF THE THINGS THAT WERE
LEFT OUT THAT WOULD BE KEY
MODERNISATIONS INCLUDING.
I TENS IN THE PROPOSAL AS WELL
AS LOOKING AT PERIODIC ADVANCE
MONTHLY PAYMENTS I KNOW THOSE
ISSUES WILL BE -- SOMETHING WE
CAN TALK ABOUT IN THE COMING
MONTHS AND I HOPE TO SEE THIS BE
THE FIRST STEPIN A LONG PATH OF
EXPANDING THIS REALLY EFFECTIVE
PROGRAM.
THANK YOU NEXT WITNESS GOOD
AFTERNOON JACKI ALONG WITH AND
HELP OUR IN CALIFORNIA THAN AND
THE GREAT SINCE TWO I WANNA --
SHOW MY SUPPORT FOR THIS BILL
BUT ALSO HER DISAPPOINTMENT IN
THE LACK OF INCLUSION OF ITUNES
AS WELL AS A TARGET A CHILD TAX
CREDIT FOR FAMILIES LIVING IN
THE PROPERTY.
THANK YOU NEXT WITNESS MADAM
MADAM CHAIR MEMBERS OF YOUR FOR
OUR HERE BEHALF THE ASSOCIATION
GLOBAL AUTOMAKERS -- SO WE ARE
PARTICULARLY HIGHLY FOCUSING
CONCERNED AND OPPOSED EL KEY
PROVISIONS -- YOU HEARD LIKE
THIS IS ONE OF THE SECTIONS THAT
IS NOT TRUE CONFORMITY.
IT TAKES WAY OKAY E. BUT AT THE
FEDERAL LEVEL IT WAS REPLACED BY
SOMETHING CALLED -- FULL
EXPENSING WHICH AT THE END OF
THE DAY -- ALLOWED THE ECONOMICS
TO TO COME TO BE KNOWN VOID IN
THE WAS IN THE HEAD BUT I WANT
TO FOCUS KINDA FOR MEN ON ONE
REALLY IMPORTANT THING.
THERE ARE LEASED VEHICLES IN THE
MARKET TODAY.
AND WILL BE FOR SOME TIME PERIOD
INTO THE FUTURE WHERE THEY WENT
OUT INTO THAT MARKET
UNDERSTANDING THAT L. K. E. WAS
GOING TO BE A TOOL SO THEIR
LEASE RATE THEIR FINANCING ALL
THE PACKAGE WAS PUT TOGETHER.
ASSUMING THE RULES WOULD NOT
CHANGE ON THE MID STREAM.
SO IT'S ONE THING TO SAY HEY
MOVING FORWARD LOOKING NOW THE
RULES ARE GOING TO BE THIS BUT
WE'VE GOT A MAJOR ISSUE TO DEAL
WITH AND THAT IS FOR THE
VEHICLES THAT ARE IN THE MARKET
RIGHT NOW.
SO WE'D LIKE TO WORK WITH YOU
AND FIGURE OUT HOW TO MAKE SURE
THAT THAT GROUP OF OF VEHICLES
IS PROTECTED AND NO ONE'S NO ONE
CAN TAKE THAT BIG HEAD SO THANKS
FOR TIME THANK YOU NEXT WITNESS.
MADAM CHAIR MEMBERS OF THE
COMMITTEE JOHN MOFFITT ON BEHALF
OF THE ALLIANCE OF AUTOMOBILE
MANUFACTURERS JUST WHEN THAT
REITERATE THE POINTS MY
COLLEAGUE JUST MADE.
ARE GONNA HAVE A MAJOR CONCERN
WITH THE RETROACTIVE NATURE
IMPACTING HUNDREDS OF THOUSANDS
OF EXISTING LEASE AGREEMENTS FOR
THE DEAL WAS DONE.
AND NOW THIS BILL IS COMING IN
AND UP SETTING ALL OF THAT.
AND LOOK FORWARD TO WORKING WITH
YOU IN THE FUTURE THANK YOU NEXT
WITNESS.
AFTERNOON CHAIR AND MEMBERS OF
THE COMMITTEE OF ANY MISTER
ROGERS AND I WORK WITH GOLDEN
STATE OPPORTUNITY -- WOULD JUST
LIKE TO TAKE THE OPPORTUNITY TO
APPLAUD THIS COMMITTEE -- AS
WELL AS THE SENATE FOR OF
PUTTING THIS PROPOSAL OUT THERE --
WE STRONGLY SUPPORT -- TAX
CONFORMITY -- WOULD CREATE A
MORE PROGRESSIVE -- FAIR TAX
CODE FOR OUR STATE WOULD SUSTAIN
THE ATC.
WOULD LOWER TAXES FOR SMALL
BUSINESSES AND CLOSE LOOPHOLES --
THAT LARGE CORPORATIONS --
EXPLOIT AND DO JUST ONE ECHO --
COMMENTS THE PREVIOUS WITNESSES
AROUND AT THE EXCLUSION OF MY
TEN THANK YOU NEXT WITNESS.
MADAM CHAIR AND SENATORS JERRY
BROWN ON BEHALF OF SCA YOU
CALIFORNIANS SUPPORTED THE
PROPOSAL.
I DO STUFF ALSO LIKE TO REMIND --
THE SENATOR SAID THIS IS A
POPULATION TAXPAYERS THEY GOT
FIFTEEN TRILLION DOLLARS IN TAX
BREAKS UNDER THE GOP.
TAX BREAK AND WE'RE TAKING ONE
POINT THREE BILLION [inaudible]
THANK [inaudible]
THANK YOU.
NEXT WITNESS.
MEMBERS OF THE COMMITTEE AT
GONZALEZ REPRESENTING TWENTY
NINE PALMS BAND MISSION INDIANS
HERE SUPPORTING THAT LOW.
INCOME WAGE EARNERS AND THE
COACHELLA VALLEY THANK YOU THANK
YOU FINAL WITNESS -- GOOD
AFTERNOON CHAI SUPPRESS IT WITH
THE CALIFORNIA SCHOOL EMPLOYEES
ASSOCIATION ALSO IN SUPPORT
THANK THANK YOU APPRECIATE IT.
WE HAD A MOTION BEFORE WE HAD
PUBLIC COMMENT.
OUT WITH THAT PLEASE CALL THE
ROLL.
PHOEBE YOU NINETY ONE THE MOTION
IS TO PASS MITCHELL.
WELL I NIELSEN.
NIELSEN KNOWN BELL WELL I'D ARE
ALSO.
DRAW SO I THOUGHT THOUGH.
THE OTHER I JONES.
JONES NO LEYVA.
LEYVA AYE MCGUIRE.
MONEY.
MONEY I AM WARLOCK.
MORE LUCK NO MORALE.
MORRELL NO PAN.
HI RALPH.
ROTH AYE SKINNER SKINNER AYE
STERN STERN AYE STONE.
STONE NO NUMBER.
WIECKOWSKI BECAUSE HE I YEAH.
WE'RE GONNA I'M GONNA HOLD THE
ROLE OPEN FOR JUST TWO MINUTES
OF THE REST MY CALLING YOU CAN
GO AHEAD AND REPORT TO THE
SENATE FLOOR AND I'LL STAY HERE.
SEE IF MISTER MCGUIRE GETS BACK
TO FEAR ONLY MISSY MEMBER.
AND I'M THAT I'M BURKE.
IF.
ANY OF YOU SEE EITHER OF THEM ON
THE FLOOR PLEASE TELL THEM WHAT
FORM AND SEND THEM BACK OUT
APPRECIATED.
PLEASE CALL THE ABSENT MEMBERS.
MCGUIRE.
MCGUIRE HI I'M BURKE.
WITH A VOTE OF TWELVE TO FIVE
THE MEASURE KERRY'S.
AND WE'LL ADJOURN -- BUDGET
COMMITTEE WE ANTICIPATE HAVING
PERHAPS ONE MORE HEARING THIS
WEEK -- AND SOON AS WE KNOW.
THE DAY WE WILL CERTAINLY NOW TO
THANK YOU MAYBE SAID THE TURN