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California Eyes Tax Break Repeal Amid $18 Billion Deficit

3/18/2026

Summary

Story summary

California is considering repealing the water’s edge tax break that lets multinational corporations exclude foreign income from state taxes to address an estimated $18 billion deficit.
Assembly Bill 1790, sponsored by Assemblymember Damon Connolly, would raise tax revenue but faces Republican opposition over potential double taxation.
A Pew Research survey shows 63% of Americans think corporations should pay more taxes, and the debate remains as California faces financial challenges.

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Story summary

California is considering repealing the water’s edge tax break that lets multinational corporations exclude foreign income from state taxes to address an estimated $18 billion deficit.
Assembly Bill 1790, sponsored by Assemblymember Damon Connolly, would raise tax revenue but faces Republican opposition over potential double taxation.
A Pew Research survey shows 63% of Americans think corporations should pay more taxes, and the debate remains as California faces financial challenges.