By Steven Harmon
MediaNews Sacramento Bureau
SACRAMENTO — Corporate tax giveaways from dead-of-night budget agreements in September and February will cost the state as much as $2.5 billion in revenues at a time when lawmakers are contemplating eliminating programs for the poor, a budget analyst said Wednesday.
The tax loopholes made it through the Legislature with no public hearings and little analysis of the effect, said Jean Ross, executive director for the California Budget Project, a research group that studies the effects of policies on the poor.
"The problem with dark-of-night deals is that you never get a chance to get a debate over value choices," she said. "These three tax breaks represent a reduction of one-third the income taxes paid by California corporations.... They really represent a stark contrast in values and what kind of future we want to see for Californians."
The tax breaks will cost the state $640 million for the rest of this fiscal year and for the 2010-11 budget year as lawmakers search for ways to close a $24.3 billion deficit, according to Ross's report, "To Have and Have Not." By the time they are fully implemented in 2014-15, the tax breaks could cost nearly $2.5 billion a year, she said.
Read the full story at the Silicon Vally Mercury News