A Los Angeles lawmaker is putting forth a controversial idea he says will help the middle class: taxing private corporations to help students pay for their college tuition.
Assembly Speaker John Perez, D-Los Angeles, says his Middle-Class Scholarship Act would cut tuition by more than half for families with a total yearly income under $150,000 -- affecting about 200,000 students statewide. A CSU student, for example, would save about $4,000 under the bill, according to supporters.
A promotional website says the savings “will be paid for entirely by closing the $1 billion wasteful corporate tax loophole that allows out-of-state corporations to elect to lower their California tax bill.”
Democrats say the bill would bring much-needed relief to students across the state’s University of California and California State University campuses -- where tuition continues to rise significantly and has tripled over the past 10 years, according to CBS -- giving it much popular support. Last week the L.A. City Council unanimously passed a resolution endorsing it.
Republicans say education is subsidized enough and believe legislators should find other ways to balance the state budget.
The bills would need a two-thirds vote to pass the Assembly before being signed by Gov. Jerry Brown.