On politics in the Golden State
August 24, 2011 | 11:09 pm

Gov. Jerry Brown has a new tax proposal to sell the Legislature: raise levies on some large out-of-state corporations in exchange for new sales-tax exemptions for companies who make products and hire people in California.

Under a plan to be unveiled in Sacramento on Thursday, Brown will ask lawmakers to revert state sales tax formulas to the way they were computed before 2009. That would force many large companies that sell their goods in California, but do not employ many Californians, to pay more in sales taxes.

The request was part of Brown’s original budget plan that was rejected by lawmakers. What’s new is how Brown wants to spend the roughly $1 billion that the tax tweak would generate. Instead of using the money for general state spending, Brown wants to give new tax credits to companies that employ people in California.

Administration officials called the proposal a “revenue neutral” proposal that would allow the state to offer new tax breaks to smaller businesses, but would not directly help the state’s general fund. They say the proposal is aimed at rewarding companies that employ people in the state as California wrestles with a 12% unemployment rate.

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