California’s homeless problem is getting worse and worse, and the AB-71 proposal by Xinfu Qiu and others wants to restore the historical tax rate for large corporations with profits of $5 million or more and levy $2.4 billion annually to alleviate the homeless problem.
California Assemblymen Luz Rivas, David Chiu, and Richard Bloom, Mayor Ruby Hsueh, and Los Angeles Mayor Eric Garcetti jointly held an online press conference on the 13th in support of AB-71, the Bring California Home Act, which would restore the previous tax rate for large corporations with profits of $5 million or more, and increase taxes for California by $2.4 billion per year to alleviate the homeless problem.
AB-71 would raise the tax rate for large corporations from 8.84 percent to 9.6 percent, back to 1980 levels. The financial institution tax rate would be raised from 10.84 percent to 11.6 percent. It would also increase taxes on profits earned overseas by corporations. President Trump‘s 2017 tax cuts reduced this tax revenue. If there is a change in the tax rate, it will affect all large companies doing business in California, not just those based in the state.
Helping tens of thousands of people find housing each year
Rivas, one of the sponsors of the proposal, said that although California is the fifth largest economy in the world, one out of every four American nomads lives in the state. That means on any given night, more than 150,000 Californians, including children, are homeless. More than 1,000 more are on the verge of homelessness because of the epidemic. And Proposition AB-71 would close corporate tax loopholes and restore historic tax rates for businesses with profits of $5 million or more, generating $2.4 billion in annual revenue. Related ongoing investments could help 28,000 people on the brink of homelessness each year with affordable apartments or rental assistance. At the same time, 25,000 people and families would have access to safe shelter each year, 43,000 people would be able to move into permanent housing, and more than 50,000 people would receive additional services, such as employment supports, in the first year of the proposal’s implementation. These funds help local governments implement plans and programs to deal with the Travellers.
Hiew Shin Fook is also one of the sponsors of the proposal. He said accountability is part of the strategy to reduce homelessness. In order to receive the funds, California must first analyze its homeless spending and identify gaps and vulnerabilities. The state would require cities, counties or continuing care agencies that receive funding to set specific benefit outcomes to demonstrate that they are indeed reducing the homeless problem. Any funded entity would be required to report how funds are being spent, how many people are being served, and what steps are being taken to promote racial and gender equity. Lawmakers would also be required to provide incentives and collect data to provide additional funding to local governments that provide new local funding and improved data systems to address the Traveller issue. The state will conduct regular audits and evaluate the progress of local governments. California’s population is less than 7 percent African-American, but nearly 40 percent of the state’s homeless population is African-American. The proposal would focus on addressing racial equity in the Traveller program.
Shelby: $23.4 billion in additional revenue for California’s economy
Shearby said that Proposition AB-71 is the first proposal that provides enough resources to permanently end the homeless problem. Ending homelessness is not only the right and and ethical thing to do, it is also the most valuable investment that will have a good impact on California’s economic development. The proposal would create more affordable housing, boost jobs for the most vulnerable, bring an estimated $23.4 billion into the California economy and create more than 137,000 new construction jobs.
Shelby said the City of Huron plans to use the Proposition funding to focus on preventing marginalized people from becoming vagrants and building permanent affordable housing. The proposal calls for 10 percent of the funds to be used to help young Travellers. This will allow Octavia to improve housing options for young people, said Lippi Xue.
Mayor Ruby Hsueh believes that Proposition AB-71 will bring $23.4 billion in revenue to the California economy. (Reporter Liu advanced/reproduction photo)
California’s hobo problem is getting more and more serious. Proposition AB-71, proposed by Qiu Xinfu and others, hopes to restore the historical tax rate for large companies with profits of $5 million or more and levy $2.4 billion annually to alleviate the hobo problem. (Reporter Liu advanced/photo)
Data from Rivas, one of the sponsors of the proposal, shows that less money is invested in housing, while the number of homeless people is increasing.
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