Assemblyman Adam C. Gray (D-Merced) released the following statement after revelations the federal coronavirus aid bill prohibits states from passing small business tax cuts: “I introduced legislation earlier this year to provide a COVID-19 tax credit for small and essential businesses. My bill was set to be heard in committee today, but the State Legislature has now been forced to sideline dozens of tax credits after it was revealed the federal stimulus bill bans states from cutting taxes.
“…federal coronavirus aid bill prohibits states from passing small business tax cuts…”
“Because California’s billionaires are making record profits on Wall Street, Congress has banned small businesses on Main Street from receiving a tax cut. This prohibition even applies to struggling businesses that have received zero dollars in federal and state aid.
“…Because California’s billionaires are making record profits on Wall Street, Congress has banned small businesses on Main Street from receiving a tax cut…”
“This is a critical year in the State Legislature where we have a real opportunity to permanently lower California’s infamously high taxes. Instead, Congress has stopped that effort before it even got started. What’s worse, they placed no such prohibition on tax increases, opening the door for special interests to pursue billions of dollars in tax hikes.
“I am urging California’s Congressional delegation to reverse this provision immediately. Small businesses are the backbone of our economy. We cannot abandon them just as we are beginning to see light at the end of the tunnel.”
More information on the implications of the federal tax cut ban can be found HERE.