Issue link: http://educator.cta.org/i/1544915
CTA Board Member Mara Harvey speaks at the AB 1790 press conference; the bill would end the "water's edge" tax break where companies can choose to only report income earned within the U.S rather than their total global profits. Tax Breaks for Corporations While Californians Struggle According to a March report by the California Budget & Policy Center (CBPC), the Golden State is estimated to spend over $9 billion on tax breaks for corporations. Under Gov. Gavin Newsom's current budget proposal, the state is estimated to spend almost six times more on tax breaks for corporations than on state tax credits for low-income Californians during the 2026–27 fiscal year. Many lower-income Californians and others across the country are already struggling to get by — especially after H.R. 1, the "Big Beautiful" federal megabill, passed in 2025 and made unprecedented cuts to health care and food assistance programs. CBPC notes that H.R. 1 is also giving out more than a trillion dollars' worth of tax breaks to corporations and the wealthy. Most Californians want the uber-wealthy to pay their fair share. A new survey by the Public Policy Institute of California shows that 62% of likely voters would vote yes on an initiative that would make existing tax rates for high-income Californians permanent. " 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." — CTA Board Member Mara Harvey 39 S P R I N G 2 0 26