Assemblyman Steps Down from GOP Post Over Tax Vote

image
Kymberly BaysKymberly Bays
Published: 15 Aug, 2012
2 min read

Following a tax vote to support the elimination of a corporate tax break, California Republican Assemblyman Brian Nestande has stepped down from his position as Republican caucus chairman in a move largely interpreted to be a rebuff of his party's staunch opposition to taxes.

"With my vote yesterday I decided to take the side of my constituents and California businesses," Nestande said in a statement.

The Riverside County lawmaker voted Monday with Democrats on AB 1500, sponsored by Assembly Speaker John Perez and designed to roll back a tax break and "require all corporations to calculate their state income tax liability based on the percentage of their sales in California," said the San Francisco Chronicle late Tuesday.

Nestande's move was decisive, as the bill passed by one vote.

"I cast a vote yesterday as the only Republican to level the playing field for California businesses, so we have the same corporate tax policy as Texas, Wisconsin, South Carolina, Mississippi, Michigan, Indiana, Utah, and 10 other states," said Nestande in a statement.

AB 1500 is one of two bills that make up the Middle Class Scholarship Act. The package will eliminate the Elective Single Sales Factor loophole in corporate tax rates.

According to a statement, the loophole "allows out-of-state corporations to pay less in taxes than businesses based in California." Estimates say nearly $1 billion is lost annually under the current tax rules.

Additional tax revenue collected from the measure would be used to fund scholarships for middle-income students at California universities. Students from families making less than $150,000 a year will receive significant tuition breaks, cutting costs by two-thirds.

Assemblyman Nathan Fletcher, who dropped his Republican party affiliation this year and became an independent, also joined Democrats in supporting AB 1500.

IVP Donate

"By closing a tax loophole that benefits out of state corporations we can put millions of Californians a step closer to achieving the American Dream," Fletcher said in an earlier statement. "Now is the time to restore access to higher education and also make California a more competitive place to create 21st century jobs."

In reaction to the deciding vote, Speaker Perez praised Nestande on Tuesday.

"I deeply respect the fact that his votes reflect his principles," Speaker Perez said in a statement. "I believe this kind of leadership should be practiced by every member of every party."

You Might Also Like

Ethan Penner
Could This Well-Funded Independent Upend the CA Governor’s Race?
Ethan Penner, a Calabasas businessman, author, and educator with a storied career in real estate finance, has officially announced his intention to run for California governor in 2026 as an independent. On his campaign website, Penner says he is running to “disrupt the failing two-party system.” ...
12 Sep, 2025
-
5 min read
Supreme Court of the United States
Forward Party Joins Petition to SCOTUS Against State of Florida
Right now, the divide between the Republican and Democratic Parties appears beyond repair. The political rhetoric is toxic, the nation’s leadership puts party gain before lasting solutions, and few voters actually feel heard by the people elected to represent them. At a time when it seems things will only get worse from here, the Independent Voter Project filed an amicus brief with the U.S. Supreme Court along with Open Primaries and the Forward Party in support of a lawsuit that targets one of the biggest culprits behind all of this....
16 Sep, 2025
-
3 min read
congress flag
Poll: 82% of Americans Want Redistricting Done by Independent Commission, Not Politicians
There may be no greater indication that voters are not being listened to in the escalating redistricting war between the Republican and Democratic Parties than a new poll from NBC News that shows 8-in-10 Americans want the parties to stop....
10 Sep, 2025
-
3 min read