Although California saw some big Democratic wins on election day last month, the propositions did not go quite as well. Victories on Prop 23 and Prop 25 were matched by some tough losses, including the failure of Prop 24, which would have closed an unaffordable and unnecessary $2 billion corporate tax loophole.

One of the corporations that fought to stop Prop 24 from passing was Genentech. It was the largest contributor to the No on 24 campaign, giving $1.6 million to the effort. Genentech, like the other companies that opposed it, claimed that closing this tax loophole – which had just been created in the fall of 2008 by a Republican demand in exchange for their vote to pass a budget – would save jobs in California.

But the election was barely over – and the results not even certified – when Genentech turned around and laid off 840 employees in Vacaville and San Francisco. The LA Times’ Michael Hiltzik explains why this matters:

There’s nothing inherently wrong with handing out tax cuts to business to spur growth. But they should be tied to specific performance by the beneficiaries. You say corporate taxes hurt job growth? Fine – we’ll give you a tax break for net new hires. After all, tax breaks aren’t free – every dollar cut for one class of taxpayers increases the burden on everyone else. (California does offer a hiring tax credit, but the program is tiny.)

Instead, California consistently awards tax breaks to business and gets nothing in return. We don’t impose a severance tax on oil producers, unlike every other major oil state; and we give commercial real estate owners a huge property tax break relative to homeowners.

Do we even get gratitude for our pains? No. Business lobbyists continually grouse that California corporate taxes are nearly the highest in the nation. But as my colleague Alana Semuels reported in October, our state and local taxes are right at the national average, measured as the share of private sector activity. Who’s higher than California? Those “business-friendly” states of Texas, Nevada, Arizona, and Alaska, among others.

This whole argument about tax cuts being good for California jobs is simply a sham. Tax cuts, tax loopholes, and tax credits generally do little to create jobs – their real purpose is to simply channel more wealth to the already rich. If that weren’t the case, companies wouldn’t be so adamant that tax loopholes and credits not be subject to strict review and oversight so that they can be closed if they aren’t producing new jobs.

We can expect to hear more of the Genentech “we need lower taxes to create jobs” argument if and when a proposed June 2011 special election takes place, asking Californians to raise taxes to save public services. Let’s remember what Genentech actually did once Prop 24 passed – and make sure Californians know about it.