|By PR Newswire||
|September 25, 2012 01:04 PM EDT||
SACRAMENTO, Calif., Sept. 25, 2012 /PRNewswire/ -- The CEOs of the remaining companies opposed to Proposition 39, General Motors, Kimberly-Clark and International Paper, were challenged today by Senator Kevin de Leon (D-Los Angeles) to a televised debate on Proposition 39, the measure that would close an out-of-state corporate tax loophole that is putting California companies at a competitive disadvantage and costing the state $1 billion in revenues and tens and thousands of jobs.
Senator De Leon, who has repeatedly sought to close the loophole, is co-chairman of the Prop 39 campaign and has asked General Motors, Kimberly-Clark and International Paper to stand with California and drop their opposition to Prop 39. Last week, the No on Prop 39 shrunk from five corporations to three after Chrysler joined Procter & Gamble in confirming they would not oppose the Yes on 39 campaign.
In a letter to the CEOs, Senator De Leon states, "I am formally challenging you to a debate in a televised, open forum so voters can plainly see how devastating your efforts are to our state...You lobbied heavily (and successfully) in favor of closing the loophole when your companies were the ones at a competitive disadvantage, but here in California, where your companies are currently avoiding millions of dollars in taxes that California companies pay, you are opposed to the policy."
Senator De Leon continues, "The loophole allows you to sell products and services to the largest consumer market in the country while paying very little in taxes – and considerably less in taxes than California companies must pay. It makes perfect sense for out-of-state companies that are padding their profits, but for California taxpayers and businesses, it makes absolutely no sense at all. I am prepared to explain to Californians why we believe eliminating the loophole and leveling the playing field for California businesses is in the best interest of the state. I welcome the three of you to explain why you felt the same way in other states, but not in California."
The Yes on Prop 39 campaign released the following statement in response to the debate challenge, "Taxpayers deserve an explanation from these companies that make millions of dollars off of state contracts and millions more off of Californians for why they are opposed to our effort to level the playing field for California businesses, bring badly needed revenues to the state, and create jobs. We've asked these CEOs to stand with California by committing to stop their opposition to Prop 39, which they have refused to do. Voters deserve an explanation for why these CEOs think it is acceptable to profit off of California but not pay their fair share and we encourage them to come out here and present their arguments in a public debate with Senator de Leon."
To view a copy of the letter that was sent from Senator de Leon to International Paper Chairman John Faraci, Kimberly-Clark Corporation Chairman and CEO Thomas Falk, and General Motors Chairman and CEO Daniel Akerson, go to: http://bit.ly/OQSAwE.
Prop 39 is the ballot initiative that would close the out-of-state corporate tax loophole in California that currently gives out-of-state companies tax breaks for creating jobs in other states. Prop 39 would close the tax loophole and put California-based companies on a level playing field, saving a billion dollars of taxpayer funds that will be used to fund schools and create tens of thousands of jobs.
Lisa Cohen, 310-395-2544
SOURCE Yes on Prop 39