Gov. Pete Wilson, apparently still smarting over the defeat of his own tax legislation, Monday vetoed a $25.4-million business tax cut that was fashioned by Democrats.
“The best tax reform to enhance California’s competitiveness and stimulate job creation was my proposal for a 15% personal income and corporate tax cut,” Wilson said in a veto message.
“No other change would have had as dramatic or beneficial an effect on the business climate than this long overdue reform.”
Wilson’s proposal passed the Assembly but stalled in the Senate, where Democrats have a narrow majority.
The bill vetoed by Wilson was a combination of business tax breaks and federal-state tax conformities that would have resulted in a net tax cut of $25.4 million in the current fiscal year and slightly larger amounts in future years, according to Senate analysts.
Wilson’s three-step proposal would have cut taxes by $180 million this fiscal year and more than $3 billion when fully implemented.