The Winners in California’s Budget Crisis
[California Budget Project]
While the September 2008 and February 2009 state budget agreements cut billions of dollars from state public services, they also included changes to corporate tax rules that will net millions of dollars in tax breaks for some California businesses. A report from the California Budget Project explains how the changes — elective single sales factor apportionment, tax credit sharing, and net operating loss carrybacks — will cost the state $8.7 billion in lost revenues between 2008-09 and 2015-16. The companies that will profit from the changes are some of California’s largest — 80 percent of the benefits will go to companies with gross receipts in excess of $1 billion.