California Lawmakers Plan to Undermine Trump Corporate Tax Cut


Just last week on Friday and Saturday I was in Palm Desert and Indian Wells California. I just gotta tell you, it is so doggone beautiful there, and my morning runs were just breathtaking. However, when I finished my run, did my push-ups and crunches, I came back to my senses, and realized I was in California. Yes, it is an exceptionally beautiful state, and the Coachella Valley was stunning, but in a practical and pragmatic thought, 13.3 percent state personal income tax is absurd, especially when it comes to the reason why: funding an absurd progressive socialist left agenda.

I realized after finishing my workout I was in a sanctuary state that cared nothing about the killing of a young American woman named Kate Steinle.

And now we find out another reason why there’s a mass exodus from the state of California.

As reported by the Sacramento Bee, “A pair of California lawmakers want to claw back some of steep tax cuts that corporations will receive under the federal tax overhaul signed last month by President Donald Trump. Democratic Assemblymen Kevin McCarty of Sacramento and Phil Ting of San Francisco announced Thursday that they will pursue a constitutional amendment to add a surcharge on large companies that do business in California, potentially raising billions of dollars to expand social services for Californians. 

“We’ve seen enough billionaire justice from the presidency,” McCarty said in an interview. “It’s time for middle class tax justice.” 

Trump’s plan reduced the federal corporate tax rate from 35 percent to 21 percent, which Republican and business leaders hailed as an incentive for a surge of capital investment and job growth. But Democrats denounced the change as a giveaway to the wealthy that would grow the national debt [funny, the progressive socialist left didn’t care about Barack Obama doubling the national debt in eight years] and require future cuts to welfare programs such as Medicaid. 

The proposal from McCarty and Ting creates a new tax for businesses in California, which already has a state corporate tax rate of 8.84 percent. Companies with annual net income of more than $1 million in California would pay an additional surcharge of 7 percent, or half their savings from the recent federal tax cut. If approved by two-thirds of the Legislature, Assembly Constitutional Amendment 22 would go before the voters for final consideration. Proponents estimate it would raise between $15 billion and $17 billion a year, which would be directed toward funding for education, college affordability initiatives, child care and preschool slots, taxpayer rebates and an expansion of California’s Earned Income Tax Credit.”

In essence, what the liberal progressives in California seek to do is weaponize their tax code to service their ideological agenda. And this is happening in a state that has cities going bankrupt and is facing a massive issue due to the CALPERS pension system.

Let’s be honest, what Assemblymen McCarty and Ting want to do is punish corporations and businesses. And is there any question as to why Toyota moved its headquarters away from California to Texas…or that Amazon is looking to establish a new headquarters, and two Texas cities are in the running — Austin and Dallas. The problem is that these companies are fleeing California, among other failing blue states, but folks are bringing the ideology of failure with them…just ask the folks in Colorado.

The mentality of McCarty and Ting is truly reflective of those words uttered by Barack Obama, “if you own a business, you didn’t build that.” These far left anti-private sector chuckleheads possess a very dangerous animus and a dismissive attitude towards American entrepreneurship, innovation, ingenuity, and investment. They believe in that basic Marxist, socialist ideal of nationalizing (government control) of all means of economic production.

McCarty, Ting, and their ilk embrace the concept that businesses only exist to fuel their ideological agenda. Its’ not up to businesses and corporations, to decide how they can return profits to their employees in the form of bonuses, and improved wages – that’s government’s role and responsibility. And that falls in line with the inane utterances of a Californian named Nancy Pelosi who referred to said bonuses being provided to workers by these corporations as “pathetic crumbs.” That’s how the multi-millionaire elitist Pelosi expresses her contempt and condescension of the American worker, our private sector.

If this constitutional amendment in California passes, which it probably will with the two-thirds threshold, you can expect more of an exodus from California. After all, what McCarty and Ting say to Apple, and the rest of Silicon Valley, is we don’t care about how much you reinvest into capital growth and the benefits to your employees…not to mention the increased tax revenues. The left demands that THEY are the ones who usurp resources of the private sector, and redistribute the wealth as they deem right — another of Karl Marx’s principles.

My question is simple, when will the folks in California awaken and realize they’re being driven into ruin by Marxist socialists…unless that’s what they truly desire. If that be the case, perhaps one day they’ll show the courage to just tell us, the entire country, that this isn’t the Democrat Party, but the Socialist Party of the United States.

After all, what do you classify folks who believe in wealth redistribution, nationalizing economic production, and expansion of the welfare state? And does anyone believe California is any different from Venezuela when it comes to economic ruin? Seems to me, I recall many Hollywood types loving on some Hugo Chavez and his socialist vision. Is the day coming when folks in California will be eating from garbage dumpsters? Well, not all the folks, just the ones who aren’t part of the elitist structure. Remember, Venezuela was once one of the most economically strong countries in South America…and quite beautiful. But when Chavez decided to enact government control of the oil industry so he could redistribute their profits to his declared social programs. What happened?

Just know this is really the end game of what Assemblymen McCarty and Ting desire…and what Sir Winston Churchill so aptly stated: “Socialism is a philosophy of failure, the creed of ignorance, and the gospel of envy, its inherent virtue is the equal sharing of misery.” And former Prime Minister of England Margaret Thatcher confirmed, “The problem with socialism is that you eventually run out of other people’s money.”

That is what history has taught us about socialism, we see it today in Venezuela…and sadly in America in places like California. If that is what y’all want for the Golden State, fine, stay there, but stop running away from it, and screwing up states where things are working as per our Constitutional Republic, and the free marketplace of ideas.

Editor’s Note: This column previously appeared at Used with the permission of the author.

Lt. Col. Allen B. West is the former U.S. Congressman representing Florida’s 22nd District, a Fox News Contributor, a contributing columnist for, the former Executive Director of the National Center for Policy Analysis in Dallas Texas, and the author of Guardian of the Republic: An American Ronin’s Journey to Faith, Family and Freedom. Col. West is the third of four generations of military servicemen in his family. During his 22 year career in the United States Army, he was awarded the Bronze Star, 3 Meritorious Service Medals, 3 Army Commendation Medals (1 with Valor device), and a Valorous Unit Award. In 1993 he was named the US Army ROTC Instructor of the Year. Col. West believes it will be principled constitutional conservative policies, not politics, which will secure a sound economic future for Americans.