Gov. Brown speaking in front of L.A. business leaders earlier this year. (Paresh Dave)

Gov. Jerry Brown's plan to close a corporate tax loophole and turn some of the extra revenues into expanded tax credits for business that hire new workers is being labeled by state Republican leaders as a mixed message that sends the state's economy "backwards."

Even if all of the state's Democratic lawmakers support Brown's plan, he still would need four Republican lawmakers to enact the corporate tax changes.

"We do not believe you need to increase taxes to provide business tax breaks," Assembly Republican leader Connie Conway said in a press release. "If the governor actually believes his tax breaks will stimulate the economy and create jobs, then he should move forward without raising taxes on other businesses. Raising taxes is the worst thing we can do to an economy in decline and we will fight these taxes every step of the way."

The state's unemployment rate sits at 12 percent. A report released on Wednesday by Congressional budget experts said the nationwide unemployment rate, currently at 9.1 percent, would not return to pre-recession levels until 2017.

Brown has questioned the state's ability to create jobs since it must have a balanced budget, unlike the federal government. But the jobs plan President Barack Obama is scheduled to unveil in two weeks is expected also to receive criticism from Republicans. Obama wants to spend heavily in the short-term while running up large annual deficits. Then, as the economy improves, he likely would propose cutting back federal investment. Republicans say their priority is to limit government deficit spending.

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