Small Business Owners Share Concerns About Prop 30's Tax Hikes

It is a community where most residents earn an income that will fall into one of the four tax brackets that will see higher rates starting next year because of Prop. 30. Small business owners within the community are concerned that the increased revenue may not be allocated appropriately, which will only hurt them and their customers.
“I don’t know what’s better to do but I certainly wouldn’t raise it that way. I don’t know why the legislature can’t do it, they should legislate – they should create laws, and they’re supposed to set up taxes so they’re not doing their job. It’s very simple,” said Edie Frere, owner of Landis Gifts and Stationary.
Residents also are worried about facing even more tax increases.
“Now the city council is voting on whether of not they’re going to raise our tax rate to nine-and-a-half percent. In the city of L.A., it’s really horrendous for everybody. It’s especially difficult for small businesses. You know we have six employees and if we lose business those people are going to lose their jobs, so you know, if small stores close it doesn’t help anybody. Now it is a national issue and a lot of small storeowners like myself have written to their congressmen and their senators. There are other ways of financing the schools instead of hurting my customers,” said Landis.
Residents fear they won't see the promised benefits of Prop. 30 either.
“Well I simply supported it because I thought it was fair to charge the top one percent more income tax in order to save the schools. I was undecided about the sales tax increase but then I thought well maybe this is a way of making the lower 99 percent you know pay, and that’s how I became reconciled to it and as a matter of fact they have all ready announced plans to keep the school year in Los Angeles as long as it was before so that’s a positive outcome. You shouldn’t have kids going to school less,” said Rebecca Butler, retired Larchmont resident.
Though L.A. Unified has said a full 180-day school year will be restored, concerns still linger in how the schools will benefit from the money.
“I really felt strongly about it because it was a badly written bill and I had no idea that people only heard schools. I could not understand, since the way I read it there was not money specifically designated to the schools. If in fact down the road it helps then I’m happy. If it doesn’t I think it is going to certainly make the voters unhappy at first because everything is going to cost more for them so it is a catch 22. If it said every year that this amount of money or a percentage of had to go to schools I would have been happier,” said Everil Bell, owner of My Favorite Place, Distinctive Clothing and Unique Gifts.
Although business owners believe they will experience residual effects of the proposition being passed the individuals, most affected remain the customers.
“It’s not really a cost to me but it is a cost to the people that are spending the money because I receive the money then I have to turn around and give it to the State Board of Equalization, so it’s not like I’m getting to hold onto any of it. So therefore they’ll complain to me and I can’t imagine for those that are willing to spend money, because people are all ready budgeting and not spending money, but the people that don’t care will just complain for a moment and then they’ll go on spending because that’s just human nature,” said Bell.
The increased taxes will be in place for seven years and in that time business owners and customers alike will be able to determine whether or not their tax dollars were in fact utilized for the causes in which were promoted before elections.