Tax Exemptions
Twenty-four billion dollars worth of tax exemptions are granted each year by the California Legislature, exemptions that at one time seemed to be a good idea. Most of these exemptions do not contain a sunset clause and so continue to be in force in perpetuity. There are currently 268 of them, and they are growing at a far greater rate than the general fund budget.
This giveaway of tax dollars to special interests will come under scrutiny if legislation in both Senate and Assembly passes. Assembly Bill 559 (Antonio Villaraigosa, D-Los Angeles) and SB 1013 (Charles Calderon, D-Whittier) would authorize the legislative analyst to examine these exemptions to see if the original social and economic purposes still exist, are cost-efficient, what income groups they favor, and to prioritize justification and establish an automatic four-year sunset clause.
The Legislature is now wrestling with the budget. How many programs will be cut because $24 billion is hidden under the table?
BRAD SMITH
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