Ending the Bias Subsidy

Gov. George Deukmejian has signed into law a measure that prohibits California tax deductions for business expenses at private clubs that exclude members on the basis of race, sex, age, religion, ancestry or national origin. Thus finally ends the public subsidy of discrimination in California.

Tax deductions allowed for membership fees, meals, drinks and other legitimate business expenses at restrictive clubs encourage discrimination. That policy is unfair to the majority of Californians--those who oppose discrimination and those who must endure it.

Private clubs will continue to decide who may belong, who may be served or who may enjoy the golf course, the swimming pool or the tennis courts just as people may decide whom they will entertain in their homes. Business discussions will also continue, but not at the expense of taxpayers who are automatically excluded.

Some clubs have voluntarily opened their doors, and others have relaxed restrictions to comply with local ordinances and a ruling by the California Franchise Tax Board. The membership at a few clubs, however, has failed to see the simple justice of the ordinances and the ruling, and need the kind of prodding that only the new law can provide.

The new law will make permanent the protections imposed by the tax board’s ruling that bans tax deductions for payments to discriminatory clubs starting in 1988. It will also apply to a greater number of clubs.

Assemblywoman Gwen Moore (D-Los Angeles) who has pressed for the law since 1979, deserves credit for perseverance. Deukemejian deserves it for acting in the best interests of all Californians.