Monday, July 28, 2014
PLACERVILLE, CALIFORNIA
99 CENTS

My turn: Tax hikes don’t level the playing field

By
August 23, 2012 |

I can think of a lot of things that might help level the playing field for California businesses. A billion dollar tax hike isn’t one of them. But supporters of Speaker Perez’s legislation, AB 1500, would have you believe otherwise.

In 2009, the Legislature adopted a tax cut that actually did help level the playing field for California businesses.

That change allowed companies to choose from two corporate tax formulas commonly used in other states: one based on property, payroll and sales; the other based on sales only.

Since the tax cut just became effective last year, we have yet to see its full impact. But there’s no doubt it’s helping many companies brave enough to do business in California.

Conversely, AB 1500 picks winners and losers. It eliminates the older property, payroll and sales formula and leaves the newer sales-only formula as the mandatory one-size-fits-all option.

Not surprisingly, the only CEOs applauding AB 1500’s recent approval by the California State Assembly are the ones who won’t be forced to pay higher taxes.

But that’s OK, according to the bill’s supporters, because the companies using the older formula don’t count as California businesses since their corporate headquarters are located out-of-state.

Imagine how high California’s unemployment rate would be if we drove out all “non-California” businesses—like Barnes and Noble, Home Depot, Microsoft, Starbucks, Target and Wal-Mart.

By imposing a billion dollar tax increase on “out-of-state” businesses like Chrysler, General Motors, International Paper and Kimberly-Clark, AB 1500 seems to miss the fact that these “out-of-state” companies employ thousands of middle-class Californians in good-paying jobs.

How many Californians care whether their company is headquartered inside or outside the state? Few, if any. Most are just happy to have a steady paycheck and health coverage. But if they lose their jobs as a result of this legislation, they’ll start caring.

Proponents of AB 1500 claim that somehow raising taxes will create more jobs in our state. Next time someone says that, ask them to provide a specific example of a company that will create one more job in California if this bill passes.

They can’t.

What’s more likely is that companies faced with a higher tax bill will downsize their California-based operations, costing us jobs we can’t afford to lose.

In short, AB 1500 grows government and punishes the very job creators we should be trying to attract to our state.

If Democratic lawmakers really want to level the playing field for California businesses, they could do it anytime — and they’d have plenty of Republican support.

They could start by repealing California’s onerous greenhouse gas regulations, which are driving up energy costs for all Californians.

They could lower California’s corporate tax rates, which are the highest in the West. They could repeal labor laws found only in California that make running a business in our state more costly than just about anywhere else on the planet.

They could also enact real regulatory reform to streamline government and reduce needless burdens on the small businesses owners who power much of our economy.

AB 1500 doesn’t accomplish any of these needed reforms. In the meantime, the playing field for California businesses remains anything but level.

Elected in November 2010, George Runner represents more than nine million Californians as a member of the State Board of Equalization. For more information, visit www.boe.ca.gov/Runner.

Comments

comments

.

News

 
County’s chief lawyer: No Brown Act violation

By Chris Daley | From Page: A1

General Plan workshop today

By Chris Daley | From Page: A1

 
Two growth control initiatives get green light

By Dawn Hodson | From Page: A1

Sand Fire burns more than 4,000 acres

By Dawn Hodson | From Page: A1, 2 Comments | Gallery

 
Fatal accident in Camino

By Cole Mayer | From Page: A1 | Gallery

Agricultural Crop and Livestock Report released

By Ross Branch | From Page: A3

 
35 people displaced in Tahoe hotel fire

By Tahoe Tribune | From Page: A3 | Gallery

.

Opinion

The balancing act: Toxic waste spreads

By Larry Weitzman | From Page: A4, 2 Comments

 
Bee-ing silly

By Mountain Democrat | From Page: A4, 1 Comment

 
.

Letters

Letter to Speaker of the House

By Letters to the Editor | From Page: A5, 2 Comments

 
GDPUD misinformation

By Letters to the Editor | From Page: A5

At the crossroads

By Letters to the Editor | From Page: A5, 1 Comment

 
Want more water?

By Letters to the Editor | From Page: A5, 1 Comment

Refugee crisis

By Letters to the Editor | From Page: A5, 1 Comment

 
.

Sports

Camp experience is ‘priceless’

By Mike Bush | From Page: A6 | Gallery

 
Speedway races cancelled

By Democrat Staff | From Page: A6

El Dorado doubles up on Pro Players

By Mike Bush | From Page: A6 | Gallery

 
Under the Scoreboard: July 26, 2014

By Democrat Staff | From Page: A6

Schedule: July 28 – Aug. 2, 2014

By Democrat Staff | From Page: A6

 
Roundup: July 26, 2014

By Democrat Staff | From Page: A6

Local spiker shines

By Democrat Staff | From Page: A7

 
Sports Scene: July 26, 2014

By Democrat Staff | From Page: A7

.

Prospecting

A beautiful day at Wakamatsu Tea and Silk Colony Farm

By Cathy Barsotti | From Page: B1 | Gallery

 
Foothill gourmet: Things get corny

By Donna Brown | From Page: B2

Bipolar Insights: From point A to point B

By Marcia Rose | From Page: B2

 
Cool time at Cowboys and Cornbread

By Democrat Staff | From Page: B2 | Gallery

As we were: Recreation district grows

By Ken Deibert | From Page: B4

 
Cantare names new director

By Cantare Chorale | From Page: B10

 
After 5 Club to meet

By Senior Day | From Page: B10

.

Essentials

Divorces

By Charlotte Sanchez-Kosa | From Page: A2Comments are off for this post

 
DUI Log: June 25-July 9

By Cole Mayer | From Page: A2

Crime Log: July 14-16

By Cole Mayer | From Page: A2

 
.

Obituaries

.

Real Estate

.

Comics

Rubes

By Contributor | From Page: A8

 
New York Times Crossword

By Contributor | From Page: A8

TV Listings

By Contributor | From Page: A8

 
Speed Bump

By Contributor | From Page: A8

American Profile Crossword

By Contributor | From Page: A8

 
Tundra

By Contributor | From Page: A8

Horoscope, Tuesday, July 29, 2014

By Contributor | From Page: A8

 
Horoscope, Monday, July 28, 2014

By Contributor | From Page: A8

Shoe

By Contributor | From Page: A8

 
Sudoku

By Contributor | From Page: A8