(SACRAMENTO, CA) –The Chair of the Assembly Revenue and Taxation Committee, Assembly Member Charles Calderon (D-Montebello), criticized his Republican colleagues for failing to prevent criminals from taking tax deductions for expenses incurred while committing a crime.

“This underscores the ludicry of the Republican Caucus pledge to vote against all taxes or any other measure, like AB 1746, which raises revenue,” stated Assembly Member Calderon. “It would appear that they would rather help criminals with their taxes than violate their creed.”  

Assembly Bill 1746 would have amended California tax law to expand the list of unallowable deductions for expenses from any income directly derived from illegal activity, including insurance fraud and elder abuse. Currently, those criminals who extort money from the elderly are allowed to make deductions on their tax returns for any expenses directly related to that criminal activity.  According to the Franchise Tax Board (FTB), prosecutors around the state are complaining that their efforts to penalize criminals are being hampered by existing law. 

Presently, California’s tax law does not allow tax deductions on gross incomes attained from illegal activities such as pimping, indecent exposure, and obscene matter.

During today’s Assembly floor session, the entire Assembly Republican Caucus refused to support AB 1746. Assembly Member 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.

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Assembly Member Charles Calderon, Chair of the Revenue and Taxation Committee represents the cities of Downey, Industry, Montebello, Pico Rivera, Whittier and the communities of East Los Angeles, Hacienda Heights, South San Jose Hills and Valinda.