Hunt for Tax Cheats Is Curbed by Governor
Schwarzenegger says the bills are unfair to employers. Backers say they targeted loopholes.
By Evan Halper
Times Staff Writer
October 20, 2005
SACRAMENTO — Gov. Arnold Schwarzenegger is putting the brakes on efforts to give state investigators more tools to hunt tax evaders, following a period of aggressive enforcement that has generated billions of dollars for California coffers.
The governor has vetoed several bills that would allow agents to go after more businesses and individuals who cost the state millions by cheating on their returns, or not filing at all. He said the measures were flawed and would have unfairly burdened employers.
The resistance from the administration comes as some of the state's most influential business and anti-tax groups charge that investigators have overstepped their boundaries and begun harassing Californians.
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Supporters of the measures that Schwarzenegger rejected said they were common-sense reforms that would have closed loopholes that big businesses and wealthy individuals have been able to slip through.
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http://www.latimes.com/news/local/la-me-taxes20oct20,1,6454695.story?coll=la-headlines-california