Revenue Forecast Underscores Need to Stop Corporate Tax Gaming

Statement by OCPP executive director Chuck Sheketoff

Corporations have gamed our tax system and it is costing the rest of us billions.

The Center’s analysis of today's state revenue forecast shows that if the legislature stopped the corporate gaming of our tax system and made corporations pay the same share of income taxes that they paid in the 1970s, we would have about $2.5 billion in additional revenue in the upcoming budget period to help the poor and middle class get ahead.

There would be enough money to pay for the costly mistakes by the 2013 "grand bargain" special session — the illegal PERS changes and the special tax treatment for wealthy business owners.

There would also be enough money to cover the loss of revenue due to the spendthrift kicker, a $473 million tax cut that primarily benefits the rich.

Today’s revenue forecast underscores the need to end corporate tax gaming that’s projected to about $2.5 billion in the next budget period.