Lawmaker: Ending corporate tax break adds billions for California

(The Center Square) – Legislation eliminating California’s biggest corporate tax break, the Water’s Edge tax election, could generate an estimated $3 billion to $4 billion in income for the state, according to the bill's author. The bill passed out of the Assembly Revenue and Taxation Committee late Monday afternoon. Assembly Bill 1790, which proposes to eliminate the state’s largest corporate tax break, is aimed to generate much-needed revenue for the state as California faces a $35 billion multi-year structural budget deficit. “For the last 40 years, California has given multi-national corporations the opportunity to choose what tax scheme they would like to use to ensure they pay as little in taxes as they possibly can,” Assemblymember Damon Connolly, D-San Rafael and author of Assembly Bill 1790, testified during the bill hearing on Monday afternoon. The Water’s Edge tax election, Connolly continued, allows such corpor