Issue link: http://educator.cta.org/i/1544915
Members lobbied for SB 1349 at the State Capitol in April. Increased revenue for schools and communities Our union has long fought to ensure that the wealthy and the billionaires pay their fair share and against an agenda that promotes privatization, charter schools and funding cuts to public education. This year, we have joined major labor unions in the state including SEIU, United Domestic Workers and the Califor- nia Labor Federation, which represents more than 1,300 unions, in the UnRig California campaign. The campaign is demanding that state lawmakers close corporate tax loopholes and contribute to services like the rest of us. This will help raise revenues to close state budget deficits without deeper cuts to education and essential social services. A majority of Californians agree with us. According to the Public Policy Institute of California's February statewide sur- vey, 62% of adults favor closing the state's budget deficit by raising state taxes paid by the wealthiest Californians. Corporations and the wealthy have benefited greatly from tax cuts pushed by President Donald Trump, while California workers — and educators — deal with the accompanying cuts to federal health and human services programs. "We can't have a system where it is always socialism for the rich and capitalism for the workers — where we have to survive and they get the handouts," said CTA President David Goldberg at the mid-March rally and press conference announcing UnRig California. UnRig California's focus: • Pay their fair share — Nearly half of profitable California corporations pay ZERO state taxes above the $800 mini- mum — significantly less than most working people. • Invest in working people — Corporate profits have hit a record $1.87 trillion, yet workers' share of wealth is at its lowest point since 1947. We need a tax code that sup- ports shared prosperity. • Protect the safety net — When corporations pay pov- erty wages, their workers are forced to rely on public programs like Medi-Cal and CalFresh. Highly profitable employers should contribute to the cost of the safety net they exploit. • Close corporate tax loopholes — Eliminate outdated tax dodges written by corporate lobbyists. Companies doing business in California should pay taxes on real global profits. A major corporate tax loophole is what's known as Water 's Edge, where companies can choose to only report income earned within the U.S. (the "water 's edge") rather than their total global profits. This allows corporations to artificially shift profits to offshore tax havens to exclude them from Cali- fornia's 8.84% corporate tax rate. AB 1790 (Connolly) was introduced in February and would end the Water 's Edge tax break. "Closing corporate tax loop- holes will raise $3 billion in state revenue that would go to the General Fund and increase education funding and bring critical resources back to classrooms," said CTA Board Mem- ber Mara Harvey at the AB 1790 press conference. "As a public school teacher, I know what happens when classrooms are asked to do more with less — outdated materials, overcrowded classes and fewer counselors and support staff for students who need them most. ... If we want California students to have safe, stable, fully funded schools, closing the largest corporate tax loophole in the state is just common sense." Co-sponsored by CTA, SB 1349 (Gonzalez) would ensure that the Legislature has the information needed to evaluate tax expenditures that have been on the books for decades — to help identify lost revenue and make sure corporations pay their fair share. See the related sidebar on the next page. To learn more and get involved, visit unrigca.org. 2 38 cta.org Feature