Fossil Fuel Companies and Tax Loopholes

The fossil fuel industry has been implicated not only in exacerbating climate change but also in financially exploiting California's tax system, which has led to a significant loss of revenue for the state. The introduction of the Water’s Edge election allowed these companies to exclude offshore profits from taxation, resulting in an annual loss of $146 million. This revenue loss has directly impacted funding for climate and clean air initiatives, leading to significant budget deficits in California. Activists argue that the diversion of these funds has hampered the state’s ability to combat climate-induced disasters like the LA wildfires.