Calif. Gov. Brown Wants Higher Taxes on Out-of-State Companies

California Gov. Jerry Brown wants to raise taxes on some large out-of-state companies in exchange for new sales-tax exemptions for firms that make products and hire workers in the state, the Los Angeles Times reported.

In a plan unveiled Thursday, Brown is asking the Legislature to revert sales tax formulas to the way they were calculated before 2009. The idea is to force large corporations that sell goods in California, but don’t employ locals, to pay more sales tax.

The governor also wants to increase tax credits for small companies making new hires in the state, the Times reported.

"At some point, Republican legislators are going to have to decide whether California jobs are more important than tax breaks for these corporations that send jobs out of state," Brown spokesman Gil Duran said.