Given the state’s multi-billion dollar budget shortfall and years of chronic budget difficulties, Democratic lawmakers say California must take another look at tax laws that benefit business. One measure proposed would repeal a law that allows companies to write off current losses against profits made in previous tax years. Assemblyman Pedro Nava is proposing a ten-percent tax on every barrel of oil produced in California. Nava, who is running for state Attorney General, says the state needs the money.
“We just can’t keep cutting, it doesn’t work, we need to protect Californians. We need to recycle the Governor’s budget, start all over again and include revenue.”
Governor Schwarzenegger is scheduled to unveil his revised budget this Friday. However, he said last week that balancing the state’s budget shortfall will be done with spending cuts—and there will be no new tax increases.