The Daily 49er editorial board unanimously voted “yes” for the proposed tax measure for multistate businesses, Proposition 39. By regulating taxes on large corporations, Californians can make certain that everybody is paying their fair share of state funds.
If voters approve Prop. 39, most multistate business that operate in California and other states at the same time, including Wal-Mart, car companies and other large corporations, would not be able to benefit from utilizing out-of-state labor.
A proposed $550 million in savings by the year 2017 from closed loopholes would be used for efficient energy projects as well as the Proposition 98 guarantee that gives funds to public schools and community colleges, according to the Secretary of State website.
We at the Daily 49er believe that large businesses should pay their dues and not avoid Californian taxes. If voters vote “no” on Prop. 39, then businesses could choose from one of the two methods that determine their taxable income.
According to the Secretary of State website, businesses usually choose the least expensive one – the “three-factor method,” which uses the location where the business holds sales, employees and property.
By passing Prop. 39, businesses would have to follow the “single sales factor method,” which forces businesses to pay taxes based on sales made in California.
Even though some say that the taxes will raise prices for Californian consumers and make the prices at Wal-Mart go up, the Daily 49er still believes that larger corporations should stay fair and contribute to the future in efficient energy and public education.
