Prop. 24: Business Tax Breaks Kept

SACRAMENTO (AP) -- California voters have decided to keep a trio of business tax breaks.

Proposition 24 would have repealed three corporate tax breaks adopted by the state Legislature estimated to save businesses about $1.3 billion a year. With 18 percent of precincts reporting, the measure was trailing with only 40 percent in favor and 60 percent opposed.

The California Teachers Association championed the measure, arguing that repealing the tax breaks would protect public schools and health care programs from budget cuts.

But business groups called it a "jobs tax," saying it would prevent them from expanding and hiring. They said it doesn't guarantee money for classrooms.

(© 2010 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)