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Companies that participate in building President Trump’s wall on the California border with Mexico would lose five state tax breaks under a newly amended bill.
Assemblyman Phil Ting (D) announced his bill as Trump visited California for the first time during his presidency to tour prototypes for the wall he is pushing to build on the U.S.-Mexico border to prevent immigration. The prototypes are in the border town of Otay Mesa, near San Diego.
Amendments to A.B. 2355 would prohibit companies that contract or subcontract to build the wall from receiving five state tax breaks:
“We want to make sure no California tax dollars are spent on building the wall,” Ting told Bloomberg Tax March 14.
About 73 percent of Californians oppose the border wall, Ting said, citing a September 2017 poll from the Public Policy Institute of California. Mexico is California’s largest trading partner, and undocumented immigrants make up 10 percent of California’s workforce, according to a fact sheet about the bill.
Trump’s budget plan includes $18 billion to fund the wall. More than 375 companies have responded to federal solicitations for proposals on the wall project, the fact sheet said.
Ting said the amendments to his bill will be official next week, and he expects the bill to be referred to the Assembly Revenue and Taxation Committee. The bill could be heard in April.
Ting proposed a bill in 2017 that would have required the pension systems for California state workers and teachers to divest from companies that help build the wall. The bill died without action in last year’s session.
His tax bill may have stronger prospects because it doesn’t involve the pension systems, but it requires a two-thirds vote in both houses that may be difficult, Ting said.
To contact the reporter on this story: Laura Mahoney in Sacramento, Calif., at firstname.lastname@example.org
To contact the editor responsible for this story: Ryan C. Tuck at email@example.com
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