POLITICO: Steyer Previews Plan To End The “Trump Tax Loophole”

SAN FRANCISCO – Prior to his press conference tomorrow, Democratic gubernatorial candidate Tom Steyer spoke to POLITICO to discuss the framework of his plan to close the “Trump Tax Loophole” and make corporations pay their fair share. 

The following are excerpts from the article. You can read more here.

POLITICO | Tom Steyer wants a special election to hike corporate taxes in 2027

• Tom Steyer is telling union leaders in California that he’d back a special election to raise corporate taxes in his first year as governor, as he tries to solidify his claim to the progressive lane in a crowded Democratic field.
• The billionaire investor has quietly been floating a 2027 push that could include modifying California’s landmark Proposition 13 property tax limits to assess commercial properties at market value, a popular progressive idea known as “split-roll,” as well other levies to raise additional revenue.
• “This is not about me. This is about meeting California’s needs, and I’m bringing up specific things that we need and specific answers,” Steyer said. “But I’m not going to be bringing them as an individual person, even as the governor. It’s going to be in conjunction, in partnership, with a whole bunch of people and organizations. And so therefore, we’ll figure out all those things.”
• Steyer has been the most vocal candidate in the race about the need to raise taxes on ultrawealthy individuals and corporations.
• Split roll in particular has been a longstanding ambition for labor unions who argue Prop 13 starves the state of vital revenue.
• The clamor for new revenue has grown during the Trump administration, where the loss of federal dollars threatens to upend the state’s budget. But there is disagreement about how to raise the new money.
• SEIU is currently backing a bill to close the so-called “water’s edge” loophole, which allows corporations to move some profits off-shore to avoid taxation. 
• Steyer has also called for plugging the “water’s edge” loophole and has cautiously embraced a new tax on billionaires, though he has expressed reservations about that specific initiative. He is now focusing his attention on Prop 13, which he has dubbed the “Trump tax loophole” after the commercial properties the president owns in California that enjoy low property tax rates thanks to the landmark law. He is planning a press conference in San Francisco Thursday to publicize his plan.

Steyer will talk more about his plan to close the corporate tax loophole tomorrow at a press conference. Media must RSVP to [email protected].

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