State budget deal gives company owned by founders of Gap clothing chain a $30-million tax break
Buried in the details of the deal to close California's $19-billion budget deficit is a roughly $30-million tax break crafted to benefit a company owned by members of one of the state's richest and most politically influential families, according to a legislative analysis obtained by The Times.
The provision, which will allow the Humboldt Redwood Co. to deduct $20 million in old losses from future taxes, is also expected to cover penalties and interest for the firm co-owned by three sons of Donald G. Fisher, founder of the Gap and Banana Republic, said company Chairman Sandy Dean.
The tax break was inserted into the draft state spending plan during closed-door negotiations between the governor and legislative leaders, said people close to the talks. They spoke on condition of anonymity because of the secret nature of the deal-making.
-- Jack Dolan in Sacramento