Here is the press release from the Governor’s office on the new bi-partisan deal announced today. The following are the bullet points summarizing the proposal:
Applies the Mandatory Single Sales Factor (SSF) to all businesses in California.
Reduces the tax rate by a half percent for the first $50,000 in taxable income for most corporations (from 8.84 percent to 8.34 percent). Estimated tax relief: $18 million.
Offers a 10 percent exemption for the first $50,000 in business income for Personal Income Tax taxpayers. Estimated tax relief: $255 million.
Cuts the minimum tax from $800 to $750—a 12.5 percent reduction. Estimated tax relief: $59 million.
Increases the standard deduction of $1,000 for individuals and $2,000 for couples. Estimated tax relief: $306 million.
Enacts a sales tax exemption on manufacturing—approximately 4 percent reduction for start ups and 1 percent reduction for established businesses. Estimated tax relief: $299 million.