The California Chamber of Commerce has added SB 220 to its 2023 Job Killer list, citing the bill would reduce the corporate tax rate for smaller businesses while increasing it 24% for larger ones. The bill currently under consideration by the state Senate Committee on Budget and Fiscal Review proposes raising the tax rate from 8.48% to 10.99% for “companies that shoulder a significant portion of corporate tax liability”, according to CalChamber’s policy advocate Preston Young.
Young further stated that such a policy could potentially damage California’s economy at an inopportune time when businesses need growth opportunities most: “SB 220 would hurt our state’s employers, employees and consumers by increasing prices of goods and services sold in California as well as forcing companies based in-state into reducing their presence.” In his letter sent to members of the Senate committee he expressed concern over how this proposed legislation could degrade economic competitiveness against other states who are known competitors when it comes attracting companies with more favorable investment climates.
