warning Hi, we've moved to USCANNENBERGMEDIA.COM. Visit us there!

Neon Tommy - Annenberg digital news

Brown Urged To Veto "Anti-Jobs" Bills

Hannah Madans |
September 8, 2011 | 1:53 p.m. PDT

Associate News Editor

Gov. Jerry Brown is being urged to veto SB 364 and SB 508 (courtesy Creative Commons)
Gov. Jerry Brown is being urged to veto SB 364 and SB 508 (courtesy Creative Commons)
Gov. Jerry Brown (D) is being urged to veto SB 364 and SB 508 by Californians Against Higher Taxes, a coalition of small businesses and organizations who want more jobs, not more taxes, to fund state programs. The group claims that these bills will undermine the positive impacts of pro-jobs tax policies.

“They are counterproductive and  treat business like they are minor criminals who need to be punished,” Scott Macdonald, the communications director of Californians Against Higher Taxes, said. “This is not going to make any business owners happy.”

SB 364 (Yee) would penalize businesses with more than 100 workers that used a tax credit and then had a 10 percent drop in the number of employees.

“Imposing penalties on already struggling businesses could force more lay-offs or even worse, force businesses to close their doors completely,” a Californians Against Higher Taxes press release said.

This bill would only affect businesses that did this after the effective date of the bill. Qualified taxpayers would also be required to submit to the Franchise Tax Board on specified information of the original return. This information would include the number of annual full-time equivalent employees employed by the taxpayer in the state in the current and previous year, Around the Capitol reports. If this information is not provided, a penalty would occur.

Macdonald said this measure is counterproductive and would hurt businesses that are already struggling. He says most businesses laying people off aren't doing so because it makes them happy, but because they are facing economic hardships. This penalty would add to it.

SB 508 (Wolk) would sunset, or set an expiration date for new tax credits, after 10 years.

Current laws allow specified credit deductions, exclusions and exemptions in computing taxes, according to Around the Capitol. This bill requires any bill introduced after 2012 that authorize personal income or corporation tax credits to contain specified goals, performance indicators to determine if the tax credit is meeting these goals and that the tax credits will no longer be operative 10 taxable years after its effective date.

Macdonald said this will force businesses to alter plans. Right now, he said, businesses plan on how they will use the tax credit as a future investment. They plan on having it for years to come and make plans accordingly. Businesses will now have to plan to use the tax credit immediately or risk losing it.

"Credits are effective because they allow businesses to look at costs over time," Macdonald said. "If they lose these after 10 years, they will lose the ability to look at costs over time. This will not help anyone feel more secure."

Californians Against Higher Taxes and Macdonald believe that the best thing to do is create jobs, not taxes. Through doing this, enough revenue will be generated to run government programs. Macdonald said Brown vetoing both these bills is a necessary step to do so.

 

Reach associate news editor Hannah Madans here.

 

Best way to find more great content from Neon Tommy?

Or join our email list below to enjoy the weekly Neon Tommy News Highlights.



 

Buzz

Craig Gillespie directed this true story about "the most daring rescue mission in the history of the U.S. Coast Guard.”

Watch USC Annenberg Media's live State of the Union recap and analysis here.

 
ntrandomness