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June 24, 2020 TO: ICI MembersManagement Company Tax Subcommittee
Tax Committee SUBJECTS: Investment Advisers
Tax RE: Opposition Letter: California "Headcount" Tax Proposal
The ICI joined a coalition letter organized by CalTax to oppose a proposed new “headcount” tax on California employers with 500 or more employees within the state. The tax rate would be $275 per employee ($137,500 for 500 employees) to be paid on an annual basis.
The letter describes that the costs of such a tax would be passed on to Californians and would disincentivize businesses, that already pay some of the highest taxes in the country, to hire a large number of employees. Currently, AB 398 remains in the Senate Rules Committee awaiting committee referral.
Katie Sunderland
Assistant General Counsel