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Schwarzenegger Rejects Proposed Business Tax Measures

by Glen Shapiro, LawAndTax-News.com, New York

27 October 2005

California governor, Arnold Schwarzenegger has vetoed several tax measures designed to boost business tax enforcement in the state.

Among the proposed measures passed by the state legislature but rejected by Governor Schwarzenegger were a 50% penalty for businesses which fail to turn over state sales taxes collected from customers, legislation allowing the salaries of employees who fail to pay their state taxes to be garnished, and a bill obliging California residents to pay state taxes owed under IRS judgements.

Schwarzenegger reportedly argued that the laws in question would have imposed an unfair burden on employers in the state.

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