California Corporate Accountability Act

SECTION 1. TITLE

This measure shall be known as the "California Corporate Accountability Act."

SECTION 2. FINDINGS

1. California loses an estimated $107 billion annually to corporate tax loopholes.
2. Nearly half of profitable corporations pay only the $800 minimum tax while reporting billions in profits.
3. CEO pay has grown to 350 times average worker pay.
4. Small businesses pay higher effective tax rates than giant corporations.

SECTION 3. WATER'S EDGE REPORTING

Section 25110 of the Revenue and Taxation Code is amended:

(a) The water's edge election is repealed. All worldwide income of unitary businesses shall be subject to California apportionment.

(b) This section applies to corporations with gross receipts exceeding $500 million.

SECTION 4. MINIMUM EFFECTIVE TAX RATE

(a) Corporations with California taxable income exceeding $10 million shall pay a minimum effective tax rate of 15%.

(b) Tax credits may not reduce tax liability below the minimum effective rate.

SECTION 5. EXECUTIVE COMPENSATION

(a) No tax deduction for compensation exceeding $1 million per executive.

(b) Clawback provisions required for bonuses tied to financial metrics that are later restated or tied to misconduct.

SECTION 6. SMALL BUSINESS PROTECTION

(a) No provisions of this act shall apply to businesses with gross receipts under $5 million.

(b) All existing small business tax credits and deductions preserved.

(c) Simplified compliance procedures for businesses under $10 million in receipts.

SECTION 7. PRICE GOUGING

(a) Price increases exceeding 10% on essential goods during declared emergencies prohibited. (b) Civil penalties of $10,000 per violation plus restitution. (c) Attorney General enforcement authority.

SECTION 8. FISCAL IMPACT

Estimated new revenue: $6-9.5 billion annually. No impact on small businesses. Revenue dedicated to platform initiatives and tax relief for working families.