SACRAMENTO – The chairman of the Assembly Revenue & Taxation Committee today strongly criticized his Republican colleagues for failing to prevent criminals from taking tax deductions for expenses incurred while committing a crime.

Assemblyman Charles Calderon, D-Whittier, said that by failing to support AB 1746, “criminals will be able to profit from their crimes -- compliments of the state of California.”

AB 1746 would amend current California tax law to disallow deductions for expenses attributable to income directly derived from illegal activity, including drug-trafficking and insurance fraud. Calderon introduced AB 1746 on behalf of the Franchise Tax Board (FTB).

During today’s Assembly floor session, the entire Assembly Republican caucus, including Assemblyman Chuck Devore, R-Irvine, the Committee’s vice chair, refused to support AB 1746.

According to the FTB, prosecutors around the state are complaining that their efforts to penalize criminals are being hampered by existing law. 

Calderon pointed out that in floor debates Assembly Republicans routinely criticize legislation that is soft on crime and often call for harsh penalties for criminals.  They also strongly oppose any state supported benefits for “illegal aliens”.   “Their vote today will allow both groups to deduct their expenses next April” he declared.