​

AB 1790 would eliminate a key bipartisan tax policy that’s been in place since the 1980’s -  the water’s-edge election – which will make life more expensive for Californians at the worst possible time. It’s a hidden $3 billion tax that will raise costs on businesses operating in California, and those costs will get passed on to Californians through higher prices, fewer jobs and less investment. 

Supporters of AB 1790 incorrectly call the water’s-edge election a “loophole.” This ignores its history – it was created to protect American trade relationships and prevent retaliation by U.S. allies against American businesses, not as a benefit to corporations. Calling it a “loophole” ignores four decades of bipartisan history and the very real crisis that made reform necessary in the first place. 

​

CAHT urges lawmakers to reject AB 1790 outright. California should pursue revenue solutions that do not drive employers away, expose residents to higher prices or invite international trade conflict. ​​​