Californians to Close the Out-of-State Corporate Tax Loophole Awards Tax Dodgers Chrysler, General Motors, Kimberly-Clark and

   Californians to Close the Out-of-State Corporate Tax Loophole Awards Tax
   Dodgers Chrysler, General Motors, Kimberly-Clark and International Paper

Tax Dodgers That Are Opposing Effort To Close A Loophole On Out-Of-State
Companies That Will Create Jobs and Support Schools in California Lobbied to
Close the Same Loophole In Their Home States

PR Newswire

SACRAMENTO, Calif., Aug. 9, 2012

SACRAMENTO, Calif., Aug. 9, 2012 /PRNewswire/ --Today, Californians to Close
the Out-of-State Corporate Tax Loophole released an Olympic-themed animated
video featuring the CEO's of Chrysler, General Motors, Kimberly-Clarke and
International Paper participating on behalf of their companies in the "Tax
Dodger Dash". The Dash is a track event where participants face three
challenges during the race: tax hurdles, where instead of jumping over the
hurdles, the CEO's avoid the hurdles altogether and run around them; tax
loopholes, where they jump into loopholes on the track that allow them to
continue the race; and finally, an opportunity to steal as much money as they
can from the state of CA, which is standing on the track prior to the finish
line. At the conclusion of the video, the medal ceremony takes place, where
the CEOs are presented with Gold, Silver and Bronze medals for their
performance. The video can be seen here:

Californians to Close the Out-of-State Corporate Tax Loophole said in a
statement, "Chrysler, GM, Kimberly-Clark and International Paper are all
deserving of a Gold Medal when it comes to Olympic-sized hypocrisy, as they
were for closing the loophole on out-of-state companies before they were
against it. Even if this hypocrisy contest was being scored by the Russian
gymnastic judges, there is no getting around the fact that these four
companies want a level playing field in their home states, but oppose it when
it is good for California jobs and California public schools. Our campaign
will continue to inform taxpayers, consumers and government officials about
the anti-California conduct of the Big Four Tax Dodgers so that the government
and public can make decisions about whether they should continue to do
business with these out of state companies."

The campaign is employing sophisticated online and social media tools to
specifically target approximately 50,000 new car buyers, including those
potentially considering GM and Chrysler, with a goal of informing California
consumers about how these companies exploit and protect tax loopholes in
California at the expense of California jobs and California schools.
California is the largest consumer market in the country and the campaign
wants consumers to be aware of the companies that are acting adverse to the
best interest of California taxpayers before making a decision to buy one of
their products.

The video was produced by Portal A, a creative studio based in San Francisco
and Los Angeles that produces and distributes viral content built for the web.
In a recent front-page profile, theSan Francisco Chroniclewrote"the
twenty-something principals are in growing demand nationally to create viral
political ads" andWired Magazinewrotethat"after a string of web hits,
Portal A, more than any other creative firm, has cracked the code of viral
video." More of their work, including the Ed Lee is 2 Legit 2 Quitspot hailed
by the Washington Post's EJ Dionne as "the most delightful
andadventurouspolitical ad of the year", can be found at

Background on the Corporate Tax Loophole in California

The corporate tax loophole in California, which was created in the dead of the
night in a backroom Sacramento deal with no debate or disclosure in 2009, is
specifically designed so that out-of-state companies can dodge taxes, putting
them at a competitive advantage over California companies. The loophole, which
gives companies an option of calculating their income based on a mixture of
payroll, property, and sales, gives multi-state corporations an incentive to
keep jobs and investment in other states so that they can reduce their taxes
in California. Basically, the fewer Californians out-of-state-companies
employ, the less they pay in taxes.

To fix the loophole, which is costing California $1 billion in revenue and
tens of thousands of jobs, many in California want to require out-of-state
companies to pay taxes based on one factor -- their sales in California --
instead of giving them a choice between sales, property, and payroll. The
"Mandatory Single Sales Factor" would prohibit multi-state companies from
reaping profits on their sales in California while dodging their fair share of
California state taxes – and it would force out-of-state companies to pay the
same as in state corporations. By reducing the incentive to locate new jobs
out of state, the Legislative Analyst's Office predicts that the mandatory
single sales factor will add $1 billion in revenues and create tens of
thousands of jobs in California.

The states of Colorado, Georgia, Illinois, Indiana, Iowa, Maine, Michigan,
Nebraska, New York, Oregon, South Carolina, Texas and Wisconsin have all
adopted a mandatory single sales factor approach – without a loophole – to
provide an incentive to companies to invest in their states. Only California
and one other state – Missouri – have this glaring loophole that allows big
corporations to pick and choose the way they pay their taxes. In California,
four companies have taken the lead to lobby successfully to keep the corporate
tax loophole alive: Chrysler, General Motors, Kimberly-Clark and International
Paper. These companies, which sell tens of millions of dollars in products to
the state, are dodging millions in taxes and putting California companies at a
competitive disadvantage.

Paid for by Yes on 39 – Californians to Close the Out-of-State Corporate Tax
Loophole. Major Funding by Thomas F. Steyer and Californians for Clean Energy
and Jobs, sponsored by environmental organizations and business for clean
energy and jobs

Contact: Lisa Cohen, 310-395-2544  

SOURCE Yes on 39 - Californians to Close the Out-of-State Corporate Tax
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