NEWS

 

Tax evaders cost state $10+ billion

Posted: Apr 17, 2012
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A new report by the Franchise Tax Board reveals that your ACSS' fight to prevent drastic cuts to your earned benefits may not be necessary after all.

State tax officials estimate that California revenues will fall short by some $10 billion this year, due to abuses of the tax system by businesses and individuals.

In one case, a couple that owned seven sandwich shops avoided paying taxes for four years and hid in excess of $800,000 of income. In 2008, another couple that owned two El Dorado painitng companies failed to report nearly $550,000 in income.

Another $2.3 billion in sales and use taxes will go uncollected this year, partially due to citizens skirting sales tax via Internet purchases.

Republican legislators recently submitted a budget calling for a nearly 5% pay cut to all state employees - in addition to millions of dollars in cuts to early childhood education, mental health services, and more - in lieu of supporting Gov. Brown's modest revenue increase proposal.

Though tax evasion will likely continue to be a problem, your ACSS firmly supports the Governor's temporary revenue increases - a 1/4-cent sales tax increase and a modest tax increase on households earning above $500,000 annually - which will appear on the November General Election ballot.

Don't allow legislators to balance the budget on the backs of state employees yet again! Stand up and vote YES on Gov. Brown's revenue increases this fall.


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