Republican California Assemblyman Brian Nestande chose to side with Democrats and vote for a tax increase on out of state businesses and according to Republican colleagues, his vote was the kiss of death and Nestande was forced to resign.
“We [Republicans] have a mantra: no new taxes for anything.” Nestande said, “They call it a tax increase. I call it closing a tax loophole.”
AB 1500 would force out-of-state businesses to pay taxes based on their income in California and would scrap 2009 legislation that gives them the option of calculating their tax payment based on property or sales.
Voting along the lines of other Republican governed states such as Texas and Mississippi, CA Republican Caucus Chair Nestande released this statement
“Today I am stepping down as Republican Caucus Chair. I cast a vote yesterday as the only Republican to level the playing field for California businesses, so we have the same corporate tax policy as Texas, Wisconsin, South Carolina, Mississippi, Michigan, Indiana, Utah, and 10 other states. I specifically named those states because they have Republican Governors that are considered leaders in our party today. They gave their home-based corporations an advantage and so should we.
That is why the California Business Roundtable supported this vote, which includes 21 of the largest California-based companies. I put forward my vote in good faith that, in its final form, this bill will be part of a comprehensive regulatory reform package to put Californians back to work. With my vote yesterday I decided to take the side of my constituents and California businesses.”
Nathan Fletcher, ex-Republican Assemblyman turned Independent, also voted for the bill. Fletcher claimed that Nestande was forced out.
“By retaliating and removing him as caucus chair, the California Republican Party has once again demonstrated why it is the party of ‘no.’
It is no wonder they are seen as a party with no ideas, no leadership and no vision… This reaffirms why I, and hundreds of thousands of Californians, have left the Republican Party.