On Valentine’s Day, Sierra College students and local activists delivered an over-sized Valentine’s Day card, signed by hundreds of concerned citizens, to Representative Tom McClintock’s district office calling on him to show his love for Placer County by voting for a budget deal that will end sweetheart tax loopholes for corporations, rather than cutting investment in the economy here in Placer County. With Congress approaching yet another fiscal cliff on March 1st, California Fair Share and concerned citizens described what they call an “economic heartbreak.” Specifically, they highlighted the fact that corporations continue to ship profits and jobs overseas to get out of paying their fair share in taxes, and, as a result, the State of California loses $4.2 billion a year in tax revenues. Proportionally, Placer County loses approximately $39.6 million in revenue, which could pay the salaries of over 550 teachers or 660 police officers.
“At a time when our economy is struggling, we all need to do our part. It is an economic heartbreak that the largest corporations are not paying their fair share. The question today is, why is Representative McClintock continuing to give sweetheart tax deals to big corporations, while Placer County needs him to be our Valentine?” asked Patrick Stelmach, the organizer with California Fair Share.
Currently, large tax loopholes for corporations are costing both federal and state governments billions of dollars. Recent research shows that the federal government loses around $90 billion and state governments about $40 billion, because of corporations’ use of foreign tax havens to hide profits abroad and avoid taxation. With Congress trying to reach a compromise between Republicans and Democrats that will reduce the deficit and still pay for national priorities, these loopholes could make up a significant portion of the final package.
Across-the-board cuts, called the sequester, are set for March 1st, a prospect that is scaring economists and local leaders alike. The sequester, it is estimated, will have numerous impacts:
- A loss of one million jobs;
- 70,000 children dropped from Head Start;
- 10,000 teachers’ jobs at risk; and,
- Small business loans reduced by $540 million.
“The hundreds of citizens that have joined our campaign are putting Representative McClintock on notice: stop giving corporations a free ride while the rest of us pay the fare. By closing massive corporate tax loopholes, Representative McClintock can deliver a stronger economy and a stronger budget in 2013,” said Stelmach.