Last year, Campaign for Liberty members helped kill an attempt to add a new carried interest tax to the GOP tax reform plan. Carried interest is a form of long-term capital gains taxes.
But in American politics, bad statist ideas never die… they move to California, where the state legislature may soon consider AB-2731, a bill that creates a California carried interest tax.
Like all capital gains taxes, carried interest taxes discourage investment, thus limiting economic growth and killing jobs. This is particularly the case with a state level carried interest tax, as it is easier for investors to move their capital and entrepreneurs and workers to move their labor to another state than move to another country.
The effects of a carried interest tax will be felt by average Californians who will lose job opportunities as investors flee California.
Fortunately, the bill requires a two-thirds majority to pass, so its success is not assured. Campaign for Liberty is firmly opposed to carried interest taxes and lawmakers, such as those below, should stand against AB-2731.
1. State Senate President Toni Atkins
2. Speaker Anthony Rendon
3. State Assembly Republican Leader Brian Dahle
4. Chair of the Committee on Revenue and Taxation, Autumn Burke
5. Vice Chair for the Committee on Revenue and Taxation, William Brough
6. Chairman, State Assembly Republican Caucus, James Gallagher
7. Chairman, State Assembly Democratic Caucus, Mike Gipson
8. State Assembly Majority Whip, Todd Gloria