tax

California’s economy might see a boost from the state’s expanded film tax credits, but local lawmakers say it’s not enough.

Despite Gov. Gavin Newsom authorizing a $750-million film and TV tax credit program last summer, the impending merger between Paramount and Warner Bros., and the projected budget cuts that are expected to follow, has reignited fears about Hollywood jobs and U.S.-based productions.

“State programs cannot simply substitute for the kind of global, federal and competitive tax incentives that are needed to bring production back to American soil and stop its offshoring,” U.S. Sen. Adam Schiff (D-Calif.) said during a news conference Friday morning.

“We must act, and the urgency could not be greater,” he said. He revealed he is working on a bipartisan federal film incentive proposal that would be competitive with what other countries are offering for film productions.

He said the program isn’t about Hollywood’s stars; it’s about the jobs that productions create, including roles for set designers, carpenters and lighting crews.

“These are the people who make that magic happen. We want to keep those jobs here, and many of us are deeply concerned about what this potential merger will do to those jobs,” Schiff said.

Earlier this week, the California Film Commission revealed that 16 shows had recently received tax credits for filming in the state. The projects represent $871 million in qualified in-state spending and are expected to generate $1.3 billion in economic activity in California. Schiff said the state tax credit has generated more than $29.1 billion in motion picture production wages and supported more than 220,000 jobs.

Even as shows start to see gains in Southern California, Los Angeles film activity was still down 13.2% from July through September when compared with the same period in 2024. The downward trend extends the loss of 42,000 jobs in L.A. between 2022 and 2024, the continued suffering of local sound stages and the offshoring of productions internationally.

“Federal policymakers must act to level the playing field and make the U.S. film and television industry more competitive on the global stage,” said Matthew Loeb, the president of the International Alliance of Theatrical Stage Employees. “A globally competitive labor-based and tax incentive is. For us, production that supplements state incentives is essential to return and maintain film and television jobs in America.”

HBO Max’s medical drama “The Pitt” is filmed at one of Warner Bros. soundstages in Burbank and it’s one of the shows benefiting from California’s tax incentive.

Noah Wyle, the star and executive producer of the show, said during the news conference that “it’s really hard to shoot a TV show in Los Angeles, and it’s really expensive, prohibitively” — so adopting an economic model that allows productions to take full advantage of the California tax incentive was essential to “The Pitt” filming in L.A.

“As an Angeleno with generational roots to this city and as a seasoned member of its creative community, advocacy for Los Angeles-based production is something that is very close to my heart,” Wyle said.

“‘The Pitt’ has blessedly become proof of that speculative concept. I’m happy to report we’ll commence shooting season three this summer, and that a rising tide has indeed lifted all boats in season one under the 3.0 tax program,” he added.

The show received a 20% tax rebate on many above-the-line costs. The budget for one episode was approximately $6.6 million, so the show received a rebate of about $760,000 per episode. By the end of season one, the production was able to save over $11 million. Wyle estimated that the first season of “The Pitt” contributed around $125 million toward California’s gross domestic product.

Rep. Laura Friedman (D-Glendale), who is working with Schiff on production tax incentives, said that because California is already seeing benefits from the current program, there’s no reason it wouldn’t work nationally. Friedman added that tax incentives are a common practice among many industries in the U.S.

“Hollywood is not asking for special treatment. Whether it is computer chips, the energy sector or pharmaceuticals, this is something that is standard in the United States,” said Friedman. “In terms of our nation, Hollywood and its ability to tell the story of America, it is something worth saving.”

SACRAMENTO — A new poll shows California voters are sharply divided over two brewing statewide ballot measures stirring up the nation’s partisan and economic divides: a one-time tax on billionaires to pay for mostly healthcare and a voter ID mandate that includes citizenship verification.

The survey conducted by UC Berkeley’s Institute of Governmental Studies and co-sponsored by The Times showed 52% of registered voters supported the billionaire’s tax, while 33% said they opposed it. Fifteen percent were undecided.

Support for the voter ID measure was more evenly split, with 44% of voters in support, 45% opposed and the remainder undecided.

The pair of statewide proposals, which have yet to qualify for California’s November ballot, emanated from opposite sides of California’s political spectrum. Organized labor and progressives are pushing hard for a new wealth tax in response to Republican cuts to federal healthcare programs, and the GOP-led call for additional voter restrictions comes in the wake of President Trump’s baseless claims that the 2020 election was stolen from him.

Poll director Mark DiCamillo said he “was a little surprised” by the results given how much attention each measure has already received.

“Just from reading the press accounts of these initiatives, I thought they would both be well ahead. There’s been a lot of discussion about them and advocates seem to be very confident in their chances of passage, but the polls seem to indicate otherwise,” he said.

The divisions over each measure fell largely along partisan and ideological lines.

On the billionaire’s tax initiative, 72% of Democratic voters said they would support the measure if the election were held today — and the same percentage of Republicans oppose it. A slim majority — 51% — of voters who are unaffiliated or registered with another party support the wealth tax, while 30% said they oppose it, with the remainder undecided.

Republican voters overwhelmingly support the voter ID initiative, with 91% saying they would vote for it. More than two-thirds of Democratic voters, 68%, said they would oppose the measure. No party preference voters appeared evenly split.

Neither ballot measure has officially qualified for the November ballot thus far, though proponents of the voter ID measure said this month that they turned in 1.3 million voter signatures to elections officials, well above the 875,000 required to qualify. Proponents of the new tax on billionaires have until June 24 to submit signatures to elections officials.

The billionaire tax has generated national news coverage and widespread debate over whether it would benefit low-income Californians or end up hurting the state’s tax base as billionaires move out of the state to avoid paying it.

The proposal is backed by the Service Employees International Union-United Healthcare Workers West, which represents 120,000 workers in California. Union leaders say that the tax would raise $100 billion to backfill steep cuts to federal healthcare programs under a sweeping tax and spending bill approved by the Republican-controlled Congress and signed in the summer by Trump.

The measure would impose a one-time 5% tax on the assets of California residents who are worth $1 billion or more, with options to pay it over multiple years.

According to SEIU-UHW, the new tax would apply to around 200 people in the state, though several wealthy tech leaders have made moves to change their residences and avoid paying the tax should it pass. In recent months, Meta Chief Executive Mark Zuckerberg, Google co-founders Larry Page and Sergey Brin and others have bought up lavish beachfront estates and new commercial office spaces in South Florida.

Some of those billionaires are also ponying up to defeat the measure. Brin, who according to Forbes is the world’s third-richest person, has contributed $45 million to a new ballot measure committee called Building a Better California, which is pushing an alternative statewide ballot measure that could scrap the billionaire’s tax.

Brandon Castillo, a veteran ballot measure campaign strategist who is not working on either of the two measures, said even though it’s currently polling above 50%, the billionaire’s tax is starting out “in a really shaky position.”

“This is not a very strong place to start,” he said. “That’s not to say they can’t keep this thing over 50%, but when you’re starting just barely above 50% and you have a tsunami of money and a huge campaign against you, it’s really hard to keep yourself at that level.”

Though previous public opinion polls at the state and national levels have shown broad support for requiring proof of citizenship to vote in elections, even among Democrats, the new Berkeley poll showed liberal voters are skeptical of the measure.

Proponents of voter ID contend that such laws prevent election fraud and, along with proof of citizenship mandates, prevent noncitizens from voting. Opponents say ID requirements threaten the fundamental constitutional rights of Americans who do not have the documentation readily available, and that the restrictions are unnecessary given that voting by noncitizens is rare and already outlawed in the U.S.

Under current law, Californians are not required to show or provide identification when casting a ballot in person or by mail. They are required to provide identification when registering to vote, and must swear under penalty of perjury, a felony, that they are eligible to vote and a U.S. citizen.

The poll showed that slim majorities of predominantly Spanish-speaking voters, voters who were born in another country and first-generation immigrants support the voter ID measure. A plurality of Latino voters also favor it, with 44% in support and 41% opposed.

But DiCamillo cautioned against reading too much into those numbers, noting that awareness of the measure is still relatively low.

“I’ve always seen in my history of measuring Latino voters’ support that they are relatively late deciders on most ballot measures,” he said. “How they break will be critical. I would say we’ll have to look at how they feel when we do our final preelection poll.”

Voter ID laws are also a top priority of Trump, who has pressured the Senate into taking up the SAVE Act, which would impose nationwide requirements for proof of citizenship to vote and already has passed the House of Representatives.

Castillo said Trump’s support could sway Democratic and liberal-leaning independents to vote against the measure.

Both DiCamillo and Castillo noted that with the November election still seven months away, voters are not paying much attention and those on either side of each ballot measure have not launched major campaigns yet.

“I suspect by the time election day comes around, these awareness numbers on the billionaire’s tax certainly are going to be much higher,” Castillo said. “You’re going to see 80-90% of voters familiar with it, just because they’re going to be inundated with advertising and earned media between now and November.”

The Berkeley IGS/Times poll surveyed 5,019 registered California voters online in English and Spanish from March 9 to 14. The results are estimated to have a margin of error of 2.5 percentage points in either direction in the overall sample, and larger numbers for subgroups.

Even as California’s soundstages suffer from a slowdown in local production, the local economy may get a boost from the state’s expanded film tax credits.

Medical drama “The Pitt,” a “Family Guy” spin-off and a kids’ science competition show from late-night host Jimmy Kimmel are among the 16 shows that received tax credits for filming in the state, the California Film Commission said Wednesday.

In total, the projects represent $871 million in qualified in-state spending and are expected to generate $1.3 billion in economic activity in California. More than 4,500 cast and crew members will be employed across the 16 shows, along with more than 50,000 background actors, the film commission said.

New to this round of awardees are animated shows and competitions, which were added to the film and television tax credit program during its revamp last year. Under the program, producers can receive up to 25% of qualified production expenses back in the form of credits that they can apply toward tax bills they have in the state.

“California’s creative economy isn’t just part of who we are — it helps power this state forward,” Gov. Gavin Newsom said in a statement. “From the folks on the soundstage to the people designing the sets, these are jobs that anchor communities.”

HBO Max’s “The Pitt” received a credit of $24.2 million, while “Stewie,” a spin-off of Seth MacFarlane’s irreverent adult cartoon “Family Guy,” was awarded $6.4 million. Kimmel’s “Schooled!” competition show, which pits young scientists and their experiments against one another, secured $6.9 million.

Since the state’s production incentive program was bolstered last year, more than 100 films and TV projects have received tax credits.

But it has taken a while for those shows to jump-start local production, which has seen a sustained slump since the pandemic, the dual writers’ and actors’ strikes in 2023 and spending cutbacks at the studios.

That lag has affected the business of local soundstages.

For the first half of 2025, the average occupancy rate at Los Angeles County soundstages was 62%, slightly lower than the 63% average recorded in 2024, according to new data from the nonprofit FilmLA, which tracks local production.

Those figures mark a significant decline from the average occupancy rate of 90% seen from 2016 to 2022, according to FilmLA data.

That’s been a problem for local soundstage operators, which had aggressively funded development of new properties or acquired them only to see production slow.

Earlier this year, Hackman Capital Partners said it was turning over the historic Radford Studio Center in Studio City to Goldman Sachs.

SACRAMENTO — As gas prices surge in California and nationally due to the war in Iran, two Democrats running for California governor are calling for the state to temporarily suspend its fuel tax or ease refinery regulations in an effort to lower costs.

Standing in front of a gas pump in a video posted to social media, San Jose Mayor Matt Mahan said the costs are “becoming an emergency for working families, and I think we ought to act like it.”

The moderate Democrat called on state lawmakers to suspend California’s gas tax, which at 61 cents per gallon is the highest in the nation.

Former Los Angeles Mayor Antonio Villaraigosa also called for an “immediate moratorium” on regulations that he blamed for “overburdening” California refineries and working families.

“These failed policies are not only hurting tens of millions of Californians, they are terrible for the environment because they have forced California to depend on imported foreign oil from the Middle East,” Villaraigosa said in a statement.

The cost of living in California, including the price at the pump, remains a pivotal issue for voters in the state, and has become central to the moderate-leaning campaigns of Mahan and Villaraigosa as they attempt to distinguish themselves in the tightly contested race for governor.

According to AAA, the average price for a gallon of regular gasoline in California on Monday was $5.52, the highest in the nation and more than 50 cents higher than any other state. The national average was $3.71, up from the previous month’s average of $2.92.

Gasoline prices in California are often among the highest in the country for a number of reasons, including environmental rules that require a unique blend of cleaner-burning fuel.

The state also relies mostly on crude oil imported from other countries including Brazil, Iraq and Guyana and processed at in-state refineries. In 2025, 61% of oil processed at California refineries was imported, compared with 23% that was produced in the state, according to data from the California Energy Commission.

A greater reliance on foreign oil has made California more susceptible to price spikes during global conflicts and other disruptions.

Republicans have long supported suspending the gas tax and cutting regulations in order to lower prices at the pump.

Steve Hilton, a GOP candidate for governor and former Fox News host, outlined a plan to lower California gas prices to $3 per gallon by slashing regulations including the low-carbon fuel standard, the rule that requires cleaner-burning gas in order to reduce tailpipe emissions.

The other major Republican in the race, Riverside Sheriff Chad Bianco, supports suspending the gas tax, according to his website.

The current price spike echoes 2022, when Russia invaded Ukraine and disrupted global oil markets.

As prices eventually fell around the rest of the country that year, they remained high for months in California, leading Gov. Gavin Newsom to wage war against oil and gas companies. He accused them of price-gouging drivers and backed laws requiring companies to report their profit margins and keep a supply of fuel on hand to prevent shortages and price spikes.

The governor backed off his battle with the oil companies last year after two refineries announced plans to close. In September, he signed legislation to permit 2,000 new oil wells in Kern County, reflecting an acknowledgement that his war on oil companies threatened to send California’s gas market spiraling.

Republican state lawmakers in 2022 pushed for a temporary suspension of California’s excise tax on gasoline, arguing that it would provide immediate relief to California drivers. That effort was rebuffed by Newsom and Democratic lawmakers, but they later approved $9.5 billion in tax refunds to Californians, providing as much as $1,050 to families as financial relief from record-high gasoline prices and other rising costs.

In 2017, the Democratic-controlled Legislature passed Senate Bill 1, which then-Gov. Jerry Brown signed into law, levying the state’s first gas tax increase in 23 years to fix California’s roads and bridges in disrepair. Under the law, the tax increases each year on July 1 based on the growth in the California Consumer Price Index.

California voters remain conflicted on the state’s regulation of the oil industry, according to an August survey by the Public Policy Institute of California. It found that more than 60% of adults support goals to reduce greenhouse gas emissions and generate electricity from renewable energy sources.

But majorities also said the costs of gasoline and utility bills is a major problem for them personally, according to the poll.

Mahan and Villaraigosa are the only two Democrats who have publicly called to roll back regulations on the state’s oil and gas market, illustrating the political murkiness at the nexus of California’s climate and affordability challenges.

Still, Democratic lawmakers – who hold supermajorities in the state Senate and Assembly – continue to shut down proposals to pause the gas tax, arguing that the state would lose out on much-needed money for roads.

“If anyone has a proposal about how to backfill (transportation) revenues, I’m up for that conversation, but so far, it’s just a bulls— political talking point,” said Assemblymember Cottie Petrie-Norris (D-Irvine).

Petrie-Norris chairs the Assembly Utilities and Energy Committee and has helped lead legislative efforts to stabilize California’s fuels market without retreating from goals to achieve carbon neutrality.

”When I ask people, ‘Do you want affordable gas, clean air or safe roads?’ they say yes. So they want us to do all three of these things,” she said. “We’ve got to be honest with Californians about trade-offs so that we can have real conversations.”

Mahan pushed back on the importance of collecting gas tax revenue.

“The truth is we have the highest taxes in the country and a $350-billion budget, and we ought to be able to pave our roads and enable working families to put food on the table,” he said in an interview. “I just reject the notion that the sky is going to fall if we provide temporary relief to working families who are being pushed to the brink by a war that they didn’t ask for.”

The San José mayor said the state should suspend the fuel tax “for the duration of the war” in Iran “or as long as gas prices are over $5 a gallon” in the state. He also called for “massive regulatory overhaul that brings down costs across the board,” including rules on refineries.

If elected governor, Villaraigosa said he would “reform and overhaul” the California Air Resources Board, which enacts many of the state’s environmental laws — including the low carbon fuel standard and cap-and-invest program.

“We can no longer allow bureaucrats who live in a bubble — with no accountability for the harm they are causing our economy and our people — to have so much power over the lives of every Californian,” Villaraigosa said in a statement.

SACRAMENTO — A corporate tax policy that costs California billions in lost tax revenue each year could be coming to an end as the state struggles to backfill federal cuts and resolve a looming budget deficit.

The proposed legislation, Assembly Bill 1790, would repeal the so-called “water’s edge” tax break, a filing option that allows multinational corporations to exclude the income of their foreign subsidiaries from state taxation.

“The tax bills of the wealthiest, most powerful corporations in the world are at all-time lows,” Assemblymember Damon Connolly (D-San Rafael), one of the primary sponsors of the bill, told The Times. “Meanwhile, we’re struggling to fund programs that feed children — I think everyone understands that now is the time for long-term budget solutions.”

Republican Sen. Roger Niello, vice chair of the Senate Budget and Fiscal Review Committee, said the bill to repeal water’s edge won’t receive support from GOP lawmakers. He said the legislation would lead to double taxation, meaning the same income would be taxed twice by different countries, and compared taxing corporations’ foreign profits to enacting tariffs.

“California already has the reputation of being not particularly business friendly,” said Niello (R-Fair Oaks). “This would really just compound that.”

A spokesperson for Gov. Gavin Newsom did not respond to a request for comment about the governor’s views on the proposal. Newsom, however, has largely shunned new tax increase proposals.

Legislation to increase taxes requires a two-thirds approval vote instead of a simple majority. Democrats in California hold a supermajority in both the Assembly and Senate, meaning the bill could still pass without Republican support, but it would require backing from the progressive and moderate wings of the party.

Kayla Kitson, a senior analyst at the California Budget and Policy Center, said the measure has a decent chance of winning support among moderate Democrats due to the state’s budgetary woes.

“The stakes are really high this year,” she said. “With any tax policy, it’s certainly hard to get folks beyond the progressive community on board, but there are a lot of discussions happening behind closed doors given the challenges that the state knows it’s going to have to deal with in the next few years.”

When filing taxes, a multinational corporation in the United States can currently choose between two methods. Worldwide reporting takes into account all of the corporation’s global profits or losses, while the water’s edge option allows the U.S.-based parent company to exclude the income of foreign subsidiaries. This can help corporations that own profitable foreign companies pay less taxes in the United States.

California is scrambling for solutions as the state is facing an estimated $18-billion budget deficit and fallout from federal cuts that slashed healthcare. A Republican-backed tax and spending bill signed last year by President Trump shifted federal funding away from safety net programs and toward tax cuts and immigration enforcement.

Carl Davis, a research director for the Institute on Taxation and Economic Policy, said the idea is picking up momentum nationwide, with states like Maryland, Minnesota and New Hampshire also considering a repeal in recent years, due to a growing awareness about profit shifting — a loophole in the water’s edge tax break that some corporations use to reduce their tax burdens by shifting profits made in a high-tax country into tax havens.

“Folks are outraged when they hear that these companies are pretending that they are earning their profits in the Caymans or in Switzerland and are skipping out on paying U.S. taxes as a result,” he said. “That feels insulting to a lot of people who are paying the taxes they owe every day.”

During an informational hearing at the Legislature last month, Rowan Isaaks, an economist with the nonpartisan Legislative Analyst’s Office, said the state does not know the extent to which corporations use profit shifting, which makes it impossible to determine exactly how much revenue California would gain by eliminating the water’s edge tax exemption. But he estimated it would bring in “single digit billions” for the state each year.

“While there would be revenue gains, the Legislature also faces a trade-off between broadening the tax base but also managing additional uncertainty,” said Isaaks, explaining it could increase budget volatility because foreign income is more sensitive to global economic conditions.

Issaks added that the Legislative Analyst’s Office has found no strong evidence that companies would flee California if the water’s edge tax break was repealed.

Jennifer Barton, director of the legislative services bureau for the California Franchise Tax Board, told legislators that mandating worldwide reporting wouldn’t be difficult for the state from an administrative standpoint, only requiring some additional outreach or educational efforts.

California Tax Foundation visiting fellow Jared Walczak said that the water’s edge option exists for a reason and that it would be unfair to mandate worldwide reporting. “The vast majority of the activity abroad is true economic activity abroad,” he told lawmakers. “Companies don’t just exist in the United States; they have sales, they have manufacturing, they do things abroad.”

A survey last year from the nonpartisan Pew Research Center found 63% of adult Americans believe large corporations or businesses should pay more in taxes, while 19% want corporate taxes to be lower and 17% believe corporate tax policy should remain the same.

Tech companies appear to be particularly aggressive with profit shifting. Six U.S. multinational corporations — Apple, Cisco, EBay, Facebook, Google and Microsoft — may have underpaid their U.S. corporate income taxes by $277 billion over varying periods from 2009 through 2022, according to a report from the Center on Budget and Policy Priorities.

Repealing the water’s edge tax break isn’t the only tax-related proposal being considered as the state seeks to increase revenue. The Billionaire Tax Act is a controversial proposed state ballot initiative that would levy a one-time, 5% tax on the state’s billionaires to help offset federal cuts. Newsom is among its critics.

Davis believes it will continue to be a hot topic regardless of the bill’s outcome this year.

“There is very good reason to think this [repeal] is going to happen at some point,” he said. “This is a debate that is certainly not going away.”

Martin Lewis has explained the personal savings allowance and when basic rate taxpayers with over £22,000 in savings could pay tax on interest earned

Martin Lewis has issued a tax alert for savers, with a particular warning for those holding more than £11,000 or £22,000 in savings, depending on their tax bracket. On his ITV programme this week, Mr Lewis provided savers with guidance on structuring their savings to prevent unnecessary tax charges on interest.

He began by explaining the personal allowance, which permits anyone to earn £12,570 before any tax is levied. This threshold has remained frozen since 2021, and last November Chancellor Rachel Reeves controversially extended this freeze until 2031.

The freeze has faced criticism for creating ‘fiscal drag’, meaning more of the lowest earners in the country now pay tax as inflation and wage rises leave them with less disposable income whilst facing higher taxation.

On this he said: “The first one, the personal allowance, £12,570 a year that you can earn from any source, earnings, rent, savings, interest without paying tax on. Most people get that unless you start earning over £100,000 when it’s taken away.”

Starting Rate for Savings Tax.

Mr Lewis said: “The next one not that many people know about is called the starting rate for savings. This is another £5,000 of savings. savings interest you can earn a year on top of the personal allowance. And this is designed for people who have low work earnings but high interest on savings. Often people who are retired. And here’s how it works.

“For every pound of earnings you earn above this allowance, you lose a pound on your starting savings rate. So imagine you earn £13,570. You’re a £1,000 above that. You can now only have £4,000 of tax-free interest in your savings due to the starting savings rate. And by the time you earn from work £17,570, this is gone. So it’s only for people on low work earnings and high interest on savings.”

He previously outlined that those in the ‘perfect circumstance’ would receive £12,570 from earned income. Mr Lewis explained the individual would then gain £5,000 through the starting savings allowance, plus £1,000 from the personal savings allowance on top ‘because they all go on top of each other’.

He added: “You could earn £18,570 a year tax-free with £12,570 of it coming from work or other sources, and another £6,000 of it coming from savings. I hope that makes sense. The main two for most people are the personal allowance and the personal savings allowance, but for those on lower incomes, it’s worth reading the starting savings allowance guide that’s our money saving expert just so you really understand it.”

Personal savings allowance

Mr Lewis described this as the ‘big one’ and said: “Next, we get the big one that many of you will know about, the personal savings allowance. And this is on top of those two. This is the fact that a basic rate taxpayer, 20% taxpayer, can earn £1,000 a year of interest in any form of savings at all without paying tax on it. Now, the top savings accounts at the moment pay about 4.5 per cent. So, you need about 22,000, just a little over £22,000 in the top savings account before you earned £1,000 interest.

“So, if you got less than that, you’re not going to be paying tax on your savings interest because it’s tax free. High rate tax because it’s within your personal savings allowance. High rate taxpayers pay £500 a year of interest they can make each year tax free. It’s about £11,000 saved at the top rate.

“If you’re an additional rate taxpayer earning over £125,000, you don’t get one of these. So, you got your personal allowance, your starting rate for savings, and on top of that up to another £1,000 in your personal savings allowance.”

For the 2025/26 tax year, the UK Personal Allowance stays at £12,570, with a 20% basic rate (up to £50,270), 40% higher rate (£50,271-£125,140), and 45% additional rate (over £125,140) applying to England, Wales, and Northern Ireland.

ISAs

Mr Lewis stated that this week’s show was focused on ISAs, explaining: “You can put up to £20,000 a tax year in, as you know. And crucially, the interest earned in a cash ISA does not count towards the personal allowance, does not count towards the starting rate of savings does not count towards the personal savings allowance. It is totally separate from that. So, anything you earn in there is not taxable. I should note premium bonds work roughly the same way, but it’s not an annual allowance. It’s a maximum £50,000 you can put in in total. Those are the main ways that you can save without paying tax on them.”

California voters are being urged to put a poison-pill effort on the November ballot that would nullify a controversial proposed tax on the state’s billionaires.

Neither proposal has yet qualified for the ballot — supporters of each need to gather the verified signatures of hundreds of thousands of voters. But petitions that have been mailed and texted to California voters in recent days demonstrate the stakes in a contest that has drawn tens of millions of dollars in campaign spending.

“Government has wasted billions of our tax dollars on homelessness and many other failed programs with little to show for it,” reads the new mailing to voters. “We can’t afford more wasteful spending!”

The proposal is aimed at countering a proposed one-time 5% tax on billionaires assets that would fund healthcare for the state’s neediest residents, but opponents say it would lead to lost tax revenues as California’s wealthiest flee the state.

Mailers and texts recently sent to voters describe the new proposal as an effort to create a more accountable, transparent and effective state government that would require auditing of new state taxes and ensuring they comply with existing law.

The small-font description of the proposed initiative included in the mailing specifies that any new tax enacted after Jan. 1 must be deposited into the state’s general fund and conform with current state tax policy, which is an oblique reference to a prior voter-approved ballot measure requiring that a significant portion of the state’s tax revenue be spent on education.

If competing proposals appear on a ballot and are successful, the one that receives the most votes nullifies the other. There are other ballot measure proposals aimed at thwarting the billionaires tax.

The mailers and texts were funded by a committee called Californians for a More Transparent and Effective Government, which was funded by another group, called Building a Better California, according to the California secretary of state’s office.

Earlier this year, the latter group received a $20-million donation from Google co-founder Sergey Brin, $2 million from former Google Chief Executive Eric Schmidt and $2 million from Stripe CEO Patrick Collison, among donations from other Silicon Valley leaders, according to fundraising disclosure reports.

Attempts to reach spokespeople connected with the effort were unsuccessful Monday night.

Suzanne Jimenez, chief of staff at SEIU-United Healthcare Workers West, the primary union backing the billionaire tax, decried what she described as an effort by a small number of the state’s wealthiest residents to avoid paying their fair share.

“So far, those few billionaires are failing,” she said in a statement. “Despite the expensive and wasteful tactics by a small group of billionaires that aim to deny voters a choice on the billionaire tax in November, our growing coalition and volunteer base is on track with signature collection and gaining momentum. The public is crystal clear on the fact that keeping ERs and clinics open is more important than billionaires getting more tax breaks.”

California’s budget is notoriously volatile because it is largely dependent on taxes paid by its wealthiest residents. Revenue hinges on capital gains from investments, bonuses to executives and windfalls from new stock offerings, all of which are grossly unpredictable.

The billionaire tax would cost more than 200 of the state’s richest residents about $100 billion if a majority of voters support it on the November ballot.

The proposed tax would retroactively apply to billionaires’ assets as of Jan. 1, and has already prompted some of California’s wealthiest residents to leave the state. It has also created a wedge among Democrats. Some argue that it is necessary to address tax inequities that benefit the rich and harm everyone else. Among the supporters is Sen. Bernie Sanders (I-Vt.), who kicked off the billionaire tax proposal drive in February.

But others, notably Gov. Gavin Newsom, oppose the effort, saying policies that vary by state would drive innovators and businesses outside of California.

March 8 (Asia Today) — Gasoline prices in South Korea are approaching 2,000 won per liter as rising global oil prices linked to tensions in the Middle East push fuel costs higher, prompting debate over additional government tax cuts.

According to the oil price monitoring system operated by the Korea National Oil Corporation, the nationwide average gasoline price stood at 1,889.40 won ($1.41) per liter as of Friday.

In Seoul, the average price reached 1,941.71 won ($1.45) per liter, nearing the psychologically significant 2,000 won ($1.49) level and increasing pressure on consumers.

Fuel prices typically reflect international oil market changes with a delay of about two to three weeks. However, the recent sharp increase has raised expectations that the government may expand existing fuel tax reductions.

The government has already extended temporary tax cuts through the end of April. Gasoline currently benefits from a 7% fuel tax reduction, while diesel and liquefied petroleum gas butane receive 10% reductions.

Fuel taxes are one of the government’s most direct tools to ease inflation, as adjustments can quickly influence consumer prices.

South Korea previously expanded fuel tax cuts during earlier energy price surges. In 2022, when oil prices spiked following the Russia-Ukraine war, the government increased the reduction rate from about 30% to the legal maximum of 37%.

Officials are reportedly reviewing whether additional tax reductions are needed. Because fuel tax rates are set by enforcement decree, the government can implement changes relatively quickly after approval at a Cabinet meeting.

Bae Jun-young of the conservative People Power Party said fuel tax cuts should be expanded to provide meaningful relief for consumers.

“If tensions in the Middle East persist, the government should also consider raising the ceiling on the flexible fuel tax rate,” Bae said.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260309010002111

CARAVAN park owners have a message for Labour: park the holiday tax now. 

One of those making the call is Claire Flower, who runs a site in Paignton, Devon, which has ­welcomed guests for more than 60 years.  

Beverley Holiday Park was started by her grandfather and now 12,000 tourists a year spend their breaks there. 

But Claire, 53, fears for the future if Labour bring in a visitor tax of at least £2 per head per night. 

She says: “If the Government puts a tax on everyone ­visiting, that means a lot of families won’t be able to afford it.  

“Holidays aren’t just a luxury, ­people rely on them for their mental health and family time. 

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“Plenty of parents these days work two or three jobs and there can be shift work in families, too. Holidays are often the only place whole ­families get to sit and eat together. 

“The Government talks about wanting people to spend their money here, not in Spain or Portugal or wherever in Europe, but how are people encouraged to do that if they’re going to be taxed for it?” 

Clare is a member of the Holiday and Residential Parks Association (Harpa), which wants the Government to abandon plans for local mayors to tax anyone staying ­overnight on a break in their area.  

She believes the tourist tax will affect the whole English Riviera in the South West, which depends heavily on holidaymakers. 

Claire says: “The economy of the entire bay will be hit. We employ 180 staff in the summer and 80 all year round.  

“We pay our VAT, our business rates, all our taxes and we help the local economy in a really big way with all the visitors we can accommodate who go on and spend in local businesses. 

“If our numbers start to dwindle, it’s impossible to say where the impact will hit hardest.” 

The park has free indoor and outdoor swimming pools but its utility bills have gone through the roof. 

Claire says: “It’s becoming harder and harder to operate but we have such loyal and lovely visitors, so we work hard to keep prices affordable.  

“We’ve even got a 30 per cent off Easter holiday offer at the moment to encourage people in.” 

The park was founded by Claire’s grandad Stan Jeavons in 1965, and her nephew Adam Furneaux, 22, is the fourth generation to work there. 

Claire says: “Grandad would be devastated at the prospect of the tax. English holiday parks like ours contribute £9.2billion in visitor spend into the economy.  

“For a lot of people, even if they could afford to go abroad, there may be a health reason they can’t or there might be another reason they choose to holiday in the UK rather than overseas.” 

Lee Jenkins, from Abertillery in Gwent, has been visiting Beverley Holiday Park since 1971, when he was three years old.  

He spent his honeymoon at the park with wife Julie in the 1990s and visits several times a year.  

Taxi driver Lee, 58, says: “We’re supposed to support the UK ­economy, aren’t we?

“This country needs people holidaying here, not abroad, so we can support local businesses and spend what we earn here rather than overseas. 

“It seems so short-sighted to tax people out of UK holidays, and it will impact the whole country’s economy.” 

Association Harpa represents 3,000 holiday parks across the UK, from small campsites to major companies.

It believes a holiday tax on British families will place extra financial strain when many are already ­struggling with the cost of living. 

The organisation’s director general, Debbie Walker, says: “Holiday parks and campsites offer some of the most affordable holidays in the UK and this tax risks pricing people out of breaks at a time when money is so tight. 

“While we fully recognise the financial pressures facing local authorities, a holiday tax adding around £100 to a typical two-week family break is not the right ­solution. 

“If we want people to choose UK holidays, taxing them for doing so sends exactly the wrong message.”

Park Holidays UK, which operates more than 50 sites in the UK, says that a tourism tax would be “totally self-defeating” as well as punishing hard-working families who choose to take a holiday in Britain. 

Chief marketing officer Brad May says: “The Government imagines a holiday levy would help raise ­revenues for cash-strapped local councils.

“But it’s far more likely that ­visitor numbers to these areas would drop as families turn to other destinations which are not slamming a tax on their fun. 

“When our guests take a well-earned break, many enjoy visiting nearby attractions, going out for a meal and spending money in local shops.

“So, it’s these businesses which will also suffer as an unintended consequence of this move.” 

All of them are backing The Sun’s Hands Off Our Hols campaign. 

It is a sentiment echoed by Alfie Best, who owns Wyldecrest holiday parks. 

He says: “When you think of a budget holiday in this country you automatically have a picture of a caravan park in your mind. They have been the backbone of holidays for a generation.  

“This tax will surely drive ­holidaymakers abroad in search of better value getaways. 

“If it comes into force, the tax will ultimately lead to the closure of many parks and lots of job losses.” 

Beirut, Lebanon – Anger in Lebanon is growing after the government of Prime Minister Nawaf Salam announced increases in petrol taxes and value-added taxes (VATs) last week.

The rises in what economists and analysts have called “regressive” taxes led to two protests on February 17 and an array of criticism against the government, including from media and voices that had previously been friendly to Salam’s reformist administration.

“The government lost its mind,” Megaphone News, an independent, progressive news outlet published on a social media account in response to Salam’s government announcing a 300,000 Lebanese pound ($3.35) price increase on 20 litres (about 5.3 gallons) of petrol or gasoline and a one percent increase from 11 to 12 percent on VAT – a consumption tax charged on goods and services at each stage of production.

On the morning of February 17, a handful of taxi drivers blocked the Ring Bridge in downtown Beirut to protest the rise in taxes. Later that evening, in Riad al-Solh Square, around 50 or so protesters gathered to express their discontent with the government’s decision.

“You have no housing, you have no loans, you have no safety, I mean, you live here in a prison, brother,” one angry protester told Lebanese television station Al Jadeed from the Ring Bridge protest.

His comments represent the frustration felt by many Lebanese – that the tax increases are yet another indignity the population must live through, including near-daily Israeli attacks and violations of the 2024 ceasefire, collapsing buildings in the north, and an ongoing economic crisis since 2019.

Salam doubles down

The last time a tax spike sent Lebanese people to the streets was in 2019. Anger in Lebanon had boiled after decades of economic and political mismanagement by the government. Then, as the country’s economy started collapsing, the government tried to implement a series of taxes, including on WhatsApp calls.

The response was widespread protests that collapsed the government, led at the time by then-Prime Minister Saad al-Hariri. But they failed to dislodge the wider sectarian system that many activists and experts say plagues Lebanon and prevents reform.

Last week’s protests were on a far smaller scale than 2019, however.

Then, protesters forced the government to walk back the taxes. But Salam, the prime minister, defended the tax hike on Friday. The government’s argument is that the taxes are necessary to pay salaries and pensions for state employees and retirees.

“We had to find a quick source to fund the raises,” he said. “These are exceptional measures… but the government wants to reform the tax system, not just impose new taxes.”

Salam also said that his government inherited a “very difficult” financial situation and promised that he would rebuild trust between the state and the people by working to establish a fair tax system.

Lebanon’s Finance Minister Yassine Jaber said the fuel price increase would take effect immediately, but that VAT increases would need parliament’s approval.

“More than 50 per cent of the budget today is allocated to salaries, and it was necessary to take steps to secure the funds,” he said.

VAT is a regressive tax

But not everyone agreed with the decision, including some ministers themselves. The right-wing Lebanese Forces bloc – which is part of the government coalition – voiced objection to the tax increase, calling for a study of the impacts.

Analysts, meanwhile, were heavily critical of the tax increase. They said that the rise of petrol prices and VAT would punish the country’s most vulnerable and would further widen the gap between rich and poor in Lebanon.

“The people who are most affected by value-added taxes are usually the poorest of the poor and the most vulnerable, given the type of their consumption, which is mostly filled of the goods and the services that are affected by taxation, and whereby the proportion of the taxation is significant,” Farah al-Shami, senior fellow and programme director for Social Protection at the Arab Reform Initiative, told Al Jazeera. “VAT is by nature the most regressive type of taxation. Studies have shown that it affects the full supply chain, meaning everything that goes into the production, for example, of a certain good is affected.”

A price increase at every step of the supply chain means that prices compound to end up being more expensive for consumers.

In 2019, decades of government mismanagement of the economy ended in the collapse of the banking sector and the depreciation of the Lebanese pound by over 90 percent. Before 2019, $1 was equivalent to 1,500 Lebanese pounds, whereas now $1 is valued at nearly 89,500 Lebanese pounds.

Many lost their life savings with the currency freefall. Banks quickly shut their doors and limited withdrawals. More than six years later, many Lebanese have not recovered, nor has the economy.

Scandalous undertaxing

The high cost of living is a regular talking point among Lebanese, particularly in the capital, Beirut. Many are struggling to make ends meet and rely on the $5.8bn in remittances from family or contacts abroad (these are 2024 figures).

With so many struggling, a tax increase that impacts the entire population is a recipe for anger. And analysts said that if the government is in need of tax revenue, there are plenty of undertaxed sources to draw from.

“Property in Lebanon remains scandalously undertaxed,” Dania Arayssi, a senior analyst at New Lines Institute for Strategy and Policy Luxury, told Al Jazeera. “Real estate in Beirut — some of the most expensive per square metre in the region — generates a fraction of the public revenue it could and should. Capital gains on property are minimal. Wealth held in land and assets is effectively sheltered. Similarly, luxury goods face no meaningful additional burden.”

Fouad Debs, a lawyer and member of the Depositors Union, a group founded after the 2019 banking crisis to protect the rights of depositors, said the decision went against the government’s stated goals of reform.

“All of this is to keep the [current] system intact and save the banks, instead of having them also pay the taxes that they should pay,” Debs said.

TODAY Sun Travel is urging our readers to stand behind our campaign to Stop The Holiday Tax.

The Government is proposing to allow local authorities the right to tax overnight stays in holiday parks, campsites, cottages, B&Bs and hotels.

That could see the cost of some of the cheapest stays at our beloved holiday parks almost DOUBLE.

The new proposals, originally announced during the Budget, could mean a £2 tax per person per night on staycations.

That would mean £70 extra for a family of five taking a week-long break.

And that’s after you’ve paid 20 per cent VAT on your trip.

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Most families already pay higher prices because of increased demand for travel during the school holidays.

The proposals will mean that many of those who have the least will be forced to pay more for precious breaks, including the many thousands who enjoy our own Hols From £9.50 trips.

The move has been met with dismay by tourism bosses and travel businesses who fear British holidaymakers may just decide to head abroad instead — or not be able to afford a break at all.

The new taxes would also have an impact on those visiting the UK from abroad.

Research from the World Travel & Tourism Council has found at least £14billion could be lost from the UK economy if daily visitor taxes were introduced.

As an industry, travel and tourism supports 4.5million jobs in the UK, the WTTC said, equivalent to roughly one in eight jobs nationwide.

But their research found that 29 per cent of visitors from the US, France and Germany — the largest inbound tourist markets — would consider alternative destinations or just decide not to visit if a substantial tax is introduced.

The levy would hit tourism in seaside towns that are already struggling to attract visitors away from the lure of cheap foreign breaks.

Just last week, VisitEngland announced a £1million campaign to encourage holidaymakers to visit the UK’s north west coast.

How can taxing those very staycation tourists help boost visits to areas of the UK where they are already having trouble attracting holidaymakers?

To show your support for our campaign and to see just how it could impact you, go to our website at StopTheHolidayTax.uk.

Enter your name and postcode and it will automatically write a message to your MP on your behalf asking them to stop the holiday tax.

The site also has a handy calculator to show you just how much it could end up costing you if the new rules go ahead.

We must stop this hols tax madness

SUN Holiday fans Diane Hunter and Michael O’Brien are already packing their bags for their next bargain break – four nights at Parkdean Resorts Whitley Bay Holiday Park, Tyne & Wear, in two weeks’ time.

But the couple, who have been on more than 200 of our great getaways in the past 20 years, are furious at the Government’s proposed holiday tax.

Retired fork-lift truck driver Michael, 61, says: “It’s an absolute disgrace.

“Just a couple of weeks ago, coinciding with my birthday, I had a major operation to remove a stomach ulcer. This break is part of my recuperation.

“But the threat of this added tax has only added to my anxiety and just shows the present Labour administration does not care about ordinary folk.

“I’m never going to agree with this idea.”

Michael and retired office worker Diane, 57, already have an astonishing nine Sun Holidays booked this year.

The couple, of Grangemouth, near Falkirk, say the value-for-money breaks put the icing on the cake of their time together. Michael feels Labour is now clearly targeting hard-working families as well as the less well-off.

He says: “The amount involved might not seem a lot, but it could mean the difference between being able to afford a holiday or not.

“Labour is scraping the bottom of the barrel here.

“So, we have no hesitation in backing The Sun campaign.

“People have to stand up and fight to stop this madness.”

‘Lots of us will lose out on trips’

JACK CULLWICK went on his first holiday in eight years this week.

With his wife and two sons, aged eight and two, he was spending half-term at Beverley Holiday Park in Paignton, Devon.

Jack, 33, of Stratford-upon-Avon, Warks, runs his own transport business and can’t take holidays overseas because he needs to be close to work, even when he’s off.

He says: “The holiday tax is a terrible idea.

“There are so many people who can’t go abroad for a number of reasons, whether it’s to be nearby for family or because of their jobs or being on call.

“If we’re priced out of coming away in the UK, plenty of people won’t have a holiday at all.”

Populist Sen. Bernie Sanders on Wednesday formally kicked off the campaign to place a billionaires tax on the November ballot, framing the proposal as something larger than a debate about economic and tax policy as he appeared at a storied Los Angeles venue.

“The billionaire class no longer sees itself as part of American society. They see themselves as something separate and apart, like the oligarchs,” he told about 2,000 people at the Wiltern. The independent senator from Vermont compared them to kings, queens and czars of yore who believed they had a divine right to rule.

These billionaires “have created huge businesses with revolutionary technologies like AI and robotics that are literally transforming the face of the Earth,” he said, “and they are saying to you and to everybody in America, who the hell do you think you are telling us what we — the ruling elite, the millionaires, the billionaires, the richest people on Earth — who do you think you are telling us what we can do or not?”

California voters can show the billionaires “that we are still living in a democratic society where the people have some power,” Sanders said.

The senator is promoting a labor union’s proposal to impose a one-time 5% tax on the assets of California billionaires and trusts to backfill federal healthcare funding cuts by the Trump administration. Supporters of the contentious effort began gathering voter signatures to place the measure on the November ballot earlier this year. Sanders previously endorsed the proposal on social media and in public statements, and said he would seek to create a national version of the wealth tax.

But Wednesday’s event, a rally that lasted more than two hours and featured a lengthy performance by Rage Against the Machine guitarist Tom Morello, was framed as the formal launch of the campaign.

“Some people are free to choose between five-star restaurants, while others choose which dumpster will provide their next meal,” Morello said. “Some are free to choose between penthouse suites, while others are free to choose in which gutter to lay their heads.”

The guitarist’s comments came amid a set that included Rage’s protest song “Killing in the Name” and Bruce Springsteen’s social justice ballad “The Ghost of Tom Joad.”

“The people who’ve changed the world in progressive, radical or even revolutionary ways,” Morello said, “did not have any more money, power, courage, intelligence or creativity than anyone here tonight.”

Milling about outside the Wiltern, a historic Art Deco venue, were workers being paid $10 per signature they gathered to help qualify the proposal for the November ballot. Inside, attendees heard from labor leaders, healthcare workers and others whose lives are being affected by federal funding cuts to healthcare.

Lisandro Preza said he was speaking not only only as a leader of Unite Here Local 11, which represents more than 32,000 hospitality workers, but also as someone who has AIDS and recently lost his medical coverage.

“For me, this fight is very personal. Without my health coverage, the thought of going to the emergency room is terrifying,” he said. “That injection I rely on costs nearly $10,000 a month. That shot keeps my disease under control. Without it, my health, my life, are at risk, and I’m not alone. Millions of Americans are facing the same after massive federal healthcare cuts are putting our hospitals on the brink of collapse.”

Sanders, who punctuated his remarks with historic statistics about wealth in the United States and anecdotes about billionaires’ purchases of multiple yachts and planes, tied the impending healthcare cuts to broader problems of growing income and wealth inequality; the consolidation of corporate ownership, including over media outlets; the decline in workers’ wages despite increased productivity; and the threats to the job market of artificial intelligence and automation. He said all these issues were grounded in the greed of the nation’s wealthiest residents.

“For these people, enough is never enough,” he said. “They are dedicated to accumulating more and more wealth and power … no matter how many low-income and working-class people will die because they no longer have health insurance.”

“Shame! Shame!” the audience screamed.

In addition to the wealth tax event, Sanders also plans to use his time in California to meet with tech leaders and speak on Friday at Stanford University about the effects of artificial intelligence and automation on American workers alongside Rep. Ro Khanna (D-Fremont).

Millions of California voters deeply support the Vermont senator, who won the state’s 2020 Democratic presidential primary over Joe Biden by eight points, and narrowly lost the 2016 Democratic primary to Hillary Clinton.

Sanders were the first presidential candidate Elle Parker, 30, ever cast a ballot for in a presidential election.

“He’s inspired me,” said the podcaster, who lives in East Hollywood. “I just love the way he uses his words to inspire us all.”

Supporters proposed the wealth tax to make up for the massive federal funding cuts to healthcare that Trump signed last year. The California Budget & Policy Center estimates that as many as 3.4 million Californians could lose Medi-Cal coverage, rural hospitals could shutter, and other healthcare services would be slashed unless a new funding source is found.

But the tax proposal is controversial, creating a notable schism among the state’s Democrats because of concerns that it will prompt an exodus of the state’s wealthy, who are the major source of revenue that buttresses California’s volatile budget.

Gov. Gavin Newsom is among the Democrats who oppose it, as is San Jose Mayor Matt Mahan, who is among the dozen candidates running to replace the termed-out governor.

Mahan argued that the proposal had already hurt the state’s finances by driving economic investment and tax revenue out of California to tax-friendly environs.

“We need ideas that are sound, not just political proposals that sound good,” he said. “The answer is to close the federal tax loopholes the ultra-wealthy use to escape paying their fair share and invest those funds in paying down our debt, rebuilding our infrastructure, and protecting our most vulnerable families from skyrocketing healthcare premiums. The only winners in this proposal are the workers and taxpayers of Florida and Texas, who will take our jobs and benefit from the capital and tax revenue California is losing.”

A group affiliated with the governor plans to run digital ads opposing the proposal featuring Newsom along with other politicians on both sides of the aisle, as first reported by the New York Times.

The proposal has received more expected and unified backlash from the state’s conservatives and business leaders, who have launched ballot measures that could nullify part if not all of the proposed wealth tax. This is dependent on which, if any, of the measures qualify for the ballot — the number of votes each receives in November compared to the labor effort.

Silicon Valley billionaires, notably PayPal co-founder Peter Thiel and venture capitalist David Sacks — both major Trump supporters — announced they had already decamped California because of the effort.

Rob Lapsley, president of California Business Round Table, added that if the wealth tax is approved, it would destroy the state’s innovation economy, destabilize tax revenue and ultimately result in all Californians paying higher taxes.

“Let’s be clear — this $100-billion tax increase isn’t just a swipe at California’s most successful entrepreneurs; it’s a tax no one can afford because it weakens the entire economic ecosystem that supports jobs, investment, wages, and public services for everyday Californians,” he said. “When high earners leave, the cost doesn’t vanish — it lands on everyone through fewer jobs, less investment, and a weaker tax base — a recipe for new and higher taxes for everyone.”