California's Tax-Cutting Legislature?
Drop by the California State Capitol at just the right moment and you might be surprised to hear liberal legislators sounding like tax-cutting conservatives.
In support of a multi-million dollar tax cut for business, one liberal lawmaker argues, "We need to send a message to New York... and other states competing for our jobs and say, 'It stops here.'"
Adds another: "We can't afford to let any more jobs abandon our state."
One more chimes in: "Right now we're getting our lunch handed to us by these other states."
You'd be right to scratch your head. For years lawmakers have voted for tax hikes and burdensome regulations that drive jobs away from our state. As a consequence, Californians pay some of the highest tax rates in the nation.
Given this grim reality, any sign that tax-and-spend lawmakers might see the error of their ways is cause for hope, if not outright celebration.
A few recent developments are encouraging:
- In May, Governor Brown signed legislation to help boost California's economy and create more opportunity for job growth in our aerospace industry. AB 777 updates the tax code to return spaceflight vehicles to their original classification of business inventory, keeping California competitive in a budding multi-billion dollar industry.
- In July, a new sales tax exemption for qualifying manufacturing, research and development equipment takes effect. The Governor and Legislature approved the changes last year as part of an overhaul of economic development policies. After years of losing good-paying manufacturing jobs to other states, California can finally compete with states that have offered this commonsense tax break for years.
- The Assembly unanimously approved bipartisan legislation to expand funding for California's film tax credit. AB 1839 would increase funding for tax credits aimed at keeping production of films and TV series in California. Although the California Film Commission received 497 applications for the tax credit this year, due to limited funding only 23 projects were selected.
- The Governor and legislators are scrambling to find incentives that might encourage Tesla Motors to locate a new factory for its electric car batteries and 6500 jobs in California. The legislative effort, embodied in SB 1309 came after Tesla founder Elon Musk called California's chances "improbable" given our state's "complex and lengthy" permitting process.
In supporting these targeted measures, Democrats are agreeing with Republicans that California tax policy directly impacts our state's ability to compete for jobs and investment. They also are finally acknowledging that California is on the losing end of this competition in at least some industries.
This admission is significant because it shows California's great weather and natural beauty are not enough to keep us competitive and ensure our state's continued growth and prosperity.
Many of the lawmakers who recognize the value of targeted tax relief often ignore the broader implications of their statements. When California loses jobs due to high taxes and regulations, the problem isn't confined to select industries.
Yet rather than craft inclusive tax policies that benefit all job creators, the Democrats in the Legislature are picking winners and losers. As a result, job creators with broad appeal, political clout or media attention get tax relief; others, like many small businesses, facing similar competitive pressures get left out.
We should want all California entrepreneurs and businesses to be successful, because their success benefits all of us. Accordingly, we must recognize that high tax rates and regulatory costs undermines economic activity we can and cannot see.
If targeted tax relief is good for jobs, wouldn't broad-based tax relief be better?
George Runner represents more than nine million Californians as a taxpayer advocate and elected member of the State Board of Equalization. For more information, visit boe.ca.gov/Runner.
Pet Care | Real Estate | Restaurants | Tech | View All | * Add/Upgrade Business
Placer County News HeadlinesAlert Rocklin Resident Helps Police Net Burglary SuspectRocklin, CA- 29 year old Juan Martinez, from Lincoln California, was arrested for residential burglary following a call from an alert Rocklin resident
Public Input sought on Proposed Placer Sports and Event Center in RosevilleRoseville, CA- Placer County is seeking public input for the proposed Placer Sports and Event Center project at the Placer County Fairgrounds in Roseville
Subaru BRZ: Old-school sports carRoseville, CA- A two-door coup that seats four people, the Subaru BRZ breaks the mold somewhat
Deadly Hit and Run in Rural NatomasA 15 year old male from Natomas was killed while riding his bicycle northbound on El Centro Rd north of Moscatel Ave. An unknown dark blue sedan
How Dietary Fiber Helps The Intestines Maintain HealthSACRAMENTO, Calif.) - UC Davis Health researchers have discovered how by-products of the digestion of dietary fiber by gut microbes act as the right fuel to help intestinal cells maintain gut health.
Buying a Home is Still Better Than RentingRoseville, CA-- Home prices continue to rise faster than incomes and new employment, but it is still more cost efficient to own a home than to rent.
Parking Fees being levied at Hidden FallsAUBURN, Calif. -- Placer County's Hidden Falls Regional Park in North Auburn is a gem of a park. Unfortunately, parking can be hard to find, especially during weekends
$22.5 Million Approved for Placer County BuildingsAUBURN, Calif. -- Placer County Board of Supervisors approve an investment plan that will allocate a minimum of $4.5 million annually over the next five years
Placer SPCA Sees Success in Waiving Adoption FeesRoseville, Calif. - Adoption fees are waived for all animals, without exception, at the Placer SPCA during the month of August for its "full hearts, empty kennels" campaign
Classic Car Show in Grass Valley August 25(Grass Valley, CA) Cascades of Grass Valley, a senior living community located at 415 Sierra College Drive in Grass Valley, will be hosting a classic car show on Friday, August 25
Warriors Set to Start 2017 Volleyball CampaignROCKLIN, Calif. - The William Jessup women's volleyball team will start the season this week hosting the Warrior Invitational
Podcasts for Fundraising Professionals and DonorsWith that goal in mind, Eric Hogue and David Pineschi of William Jessup University are regularly producing light-hearted podcasts each month
NEWS: In Case You Missed It