Bill Helps College Students Pay for Textbooks

SACRAMENTO - Assemblymember Marty Block (AD-78) presented Assembly Bill (AB) 1178, also known as the “Cayman Islands Tax Loophole” bill, on the Assembly Floor last week.  It passed the Assembly with a 42-28 vote and now heads to the State Senate.  AB 1178 would generate $120 million in revenue currently lost to a few large corporations which hide California-sourced income in foreign accounts allowing them to avoid paying their fair share of state taxes.

The bill simultaneously helps college students by reducing the state’s sales tax on college textbooks, utilizing the anticipated revenue from the loophole closure to achieve this assistance for struggling students without cost to the state.

Speaker of the California Assembly Karen Bass commented on the significance of this legislation.  “Too many large corporations hide their assets offshore to avoid paying the taxes they owe”, said Bass.  “AB 1178 addresses this inequity and levels the playing field so the rest of us, who play by the rules, aren't left paying higher taxes for these corporate deadbeats.”

Assemblymember Block resonated with residents during his 2008 campaign for the Assembly seat when he used a White Board in commercials to show how some corporations were hiding money off shore in the Cayman Islands.  AB 1178 tackles what continues to be a hot issue for many Californians.
“Each year, millions of Californians dutifully pay their taxes,” said Assemblymember Block.  “There is no reason these multi-national conglomerates shouldn’t do the same.  AB 1178 doesn’t make large corporations pay greater taxes, and it doesn’t create a new tax.  It simply closes a loophole they have for too many years been abusing.”

For additional information on AB 1178, please view Assemblymember Block’s web report video at http://democrats.assembly.ca.gov/members/a78, or contact his office at (916) 319-2078.

Contact: David Glanzer @ (619) 208-2001