A constitutional amendment (ACA-22) pending before the California General Assembly would more than double the state’s corporate income tax rate, yielding the nation’s highest rate–an astonishing 18.84 percent, up from the current rate of 8.84 percent. Assemblyman Kevin McCarty (D), one of the lead sponsors of the amendment, characterized it as “middle class tax justice” and argued that given federal rate reductions, corporations could afford to pay more in California taxes. A lot more, evidently: the new top marginal corporate rate in California, imposed on all business income above $1 million, would be 90 percent of the federal rate of 21 percent. Nationally, the average top marginal corporate income tax rate is currently 6.5 percent, and the median is 6.3 percent. The proposed California rate would be three times the current median rate. Only one rate currently hits double digits, and that’s Iowa’s 12 percent corporate rate, which is…
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