Proposal to Use Taxes for Tax Reforms
Los Angeles City Councilman Tom LaBonge proposed Wednesday that 75% of business taxes collected through a new crackdown on scofflaws be devoted to reforms, including possible rate reductions and tax code simplifications.
As a result of a new state law, the city can learn the identity of all Los Angeles companies paying state taxes, information that can be cross-checked with city tax rolls to determine which companies are not paying required city taxes.
The resulting crackdown is expected to produce at least $8 million a year. The motion will be considered by the City Council.
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