Gov. Arnold Schwarzenegger vetoed several bills that would have strengthened the enforcement of business tax laws in California.
The state legislature passed a number of bills this session that would have increased tax collection measures after a successful amnesty program brought in billions of dollars in unpaid corporate taxes after threatening bigger penalties for companies that don't pay. Invitations to join the amnesty were sent to thousands of individuals and businesses suspected of hiding profits, bringing in more than $4 billion to the state.
Among the vetoed measures was a 50 percent penalty on businesses that fail to turn over state sales taxes collected from customers, a law that would allow the state to garnish the wages of employees who failed to pay their state taxes, and a bill that would have required Californians to pay state taxes owed under any judgment entered against them by the Internal Revenue Service.Schwarzenegger said that the measures were flawed and would have unfairly burdened employers. Several groups, including the California Taxpayers Association, the Howard Jarvis Taxpayers Association and the California Chamber of Commerce, have lobbied the State House, saying officials need to find less invasive ways to reclaim about $6 billion in state taxes that are owed each year but not paid.
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