State Treasurer Targets Tax Evading Companies

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(Sacramento, CA)
Tuesday, August 17, 2004
The bill by Democratic Assemblywoman Judy Chu is another attempt to close a loophole that allows large corporations to transform themselves to foreign companies in name only— often by setting up subsidiaries in offshore tax havens such as Bermuda or the Cayman Islands. Chu calls the practice a tax travesty. Cut: JudyC1 (:11) “Every tax dollar that these companies export out of the state means one more dollar we have to cut from K-12 schools, hospital emergency rooms, and children’s health care.” The bill is sponsored by the State Treasurer Phil Angelides who cites tax losses estimated by the Franchise Tax Board at more than 130-million dollars over the next ten years. The measure follows a similar attempt last year that failed to attract enough Republican votes for passage in the state Senate. SOC