California Republicans support a corporate tax break that rewards companies for not creating jobs

By George Skelton
Capitol Journal
June 27, 2011

From Sacramento

Republican legislators and a major business lobby preach job creation. But they support a corporate tax break that rewards companies for not creating jobs in California.

It's counterintuitive and a bit hypocritical.

Closing the tax loophole not only would remove a disincentive for business expansion in California, it ultimately would generate $1 billion annually for the state's starving treasury.

This issue is highly complicated and illustrative of the kind of reckless decision-making that can occur in legislative chambers during all-nighters. Lawmakers are sleep-deprived and desperate for a deal, any deal.

That's what happened in 2009. To secure three Republican votes in each house for a tax increase — the temporary tax hikes Gov. Jerry Brown has been trying to extend — Democrats traded the corporate tax break.

more
http://www.latimes.com/news/local/la-me-cap-tax-break-20110627,0,4366703.column

Truly insane.