Steyer's Calif. Tax Referendum Passes

Nov 7 2012 | 1:46pm ET

Last night was a good one for Thomas Steyer, the retiring head of Farallon Capital Management.

A staunch supporter of the re-elected President Barack Obama, who addressed the Democratic National Convention this year, Steyer was no doubt pleased by Obama's unexpectedly easy win and Democratic gains in the House of Representatives and Senate. Then, Steyer's fellow Californians overwhelmingly approved a ballot initiative backed by the hedge fund billionaire.

Steyer's measure, which was winning 59.5% to 40.5% with about 60% of the vote in, would close a California tax loophole that Steyer says favors out-of-state companies. The measure will require corporations to base their tax on in-state sales only, rather than the earlier formula with allowed them to consider their property and workforce in the state.

The measure is expected to generate about $1 billion in new revenue every year for cash-strapped California, although Steyer, an ardent environmentalist and proponent of green initiatives, made sure half that money will go towards increasing energy efficiency and clean-energy job training. Another chunk is earmarked for schools.


In Depth

An Interview With Harvest Volatility Management's Rick Selvala

Mar 23 2017 | 5:39pm ET

Several years of extremely low interest rates have pushed some investors into equities...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

SEI: Private Debt Coming Into Its Own

Mar 8 2017 | 9:24pm ET

The explosive growth of private debt over the past few years has caused the lines...

 

From the current issue of