In the Tax Foundation’s 2011 State Business Tax Climate Index, California dropped from the 48^th worst state in the nation to do business in to the 49^th worst.  California lags behind only New York (but there’s always next year). 

See the Foundation’s paper here.

The LA Times editorial board actually wrote last week that California’s businesses are not overtaxed.    Some might disagree with that proposition.  Loren Kaye, President of the California Foundation for Commerce and Education brings some pretty convincing facts to prove that California’s businesses are considerably overtaxed and at a disadvantage right out of the gate because of oppressive taxation and poor leadership.

The fundamental problem with the Times article, and much of the left-of-center criticism of California business taxation – is that they posit a world where public policy is a passive pawn in the hands of manipulative corporations, in the words of Controller John Chiang, “A lot of the tax credits are given to larger business…”

No, not “given.” Companies invest in California, buy equipment and buildings, hire workers, are successful in producing and selling their product or service, make a profit – in California – pay taxes, and earn a credit if they have made investments according to the policies underlying the credit. This is an active, dynamic and competitive economy, influenced by state policy and the interest in businesses in investing here.

Read the entire article here.

That’s what Fox Business News guest called California’s legislature in explaining why 144 companies left California this year.  Business relocation expert Joseph Vranich listed a host of reasons why California is the worst state in the union to do business.  Negative business climate, high regulation and excessive taxes were all reasons why companies are fleeing California.  Los Angeles, Vranich said, was the worst city in United States to do business.  See the interview here.

This year’s CAEZ conference will feature prominent business consultant Larry Kosmont. 

Kosmont is an industry veteran who specializes in providing economic development, finance, and real estate advisory services to both public agencies and private corporations. As an economic development consultant Kosmont assists companies with finding business-friendly cities.

He established Encino-based Kosmont Companies in 1986 and is well known for founding The Kosmont – Rose Institute Cost of Doing Business Survey™, a national publication that compares taxes and incentives for more than 400 cities and counties nationwide.

Read the Highland News article here.

Pharmaceutical giant Bayer cut 39 jobs, but is not at risk of leaving the Oakland Enterprise Zone reports the Bay Citizen.  Read the article here.

Harbor Gateway is seeking EZ status to attract business and help create jobs for the unemployed.  “It would be a significant benefit to businesses,” said Bill Johnson, manager of the Los Angeles County Economic Redevelopment Division.

Given the current EZ debates, it is critical to highlight the requirements to become an EZ.  As the article states, “To qualify, the area must have a high unemployment rate and a high volume of low-income residents.”  Enterprise Zones are built around areas of high unemployment and low income residents.  Only those areas can even apply for one of the limited number of EZs.  The subsequent business build up directly benefits the less fortunate.   Union leaders now characterize the EZ program as a tax loophole, even though the EZ program directly benefits the workers the unions claim to defend.

The full article can be read here.

Here’s the link to the FTB’s August Tax News.

Taxpayers have claimed only about $30m out of the $400m in New Jobs Credit.

Brad Frost, Chairman of the Shasta County Economic Development Corporation, wrote an op-ed piece in today’s Redding Searchlight in which he praises the EZ as instrumental in improving economic conditions and creating jobs.  The piece quotes Bob Luddy, President of Captive Air, a large Shasta County employer, who had this to say:

The opening of the Redding facility enabled Captive Aire to provide quick deliveries at lower costs to our Pacific West customers.  In particular, the enterprise zone tax credits were a major consideration when deciding on this location. These tax credits resulted in significant tax savings which will greatly enhance our ability to sustain profits and thus ensure the stability of the California operations for the future.

It’s hard to argue against the hard facts attested to by those in the business community, especially when those opposed to the EZ are either politicians or unions, neither of which have impressive track records in running businesses and creating the jobs that everyone is talking about and that California so desperately needs.

 The full piece can be read here.

The Desert Sun reported on Mark Weber move into the Coachella Valley EZ manager.   Mark, who replaces Hal Joseph, seems to have significant expertise that should hopefully give him the tools he needs to lead the zone.  The full article can be read here.

The National City Chamber of Commerce issued its official stand in favor of California’s Enterprise Zone program.  The complete letter from Pres/CEO Jaqueline Reynoso can be viewed here.