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Posts Tagged ‘EZ tax credits’

“Enterprise Zones Should Be Left Alone”

Thursday, May 19th, 2011 | Enterprise Zones, Tax News

From the Santa Clarita Signal:

Santa Clarita Valley officials said Wednesday that they’re skeptical of Gov. Jerry Brown’s latest budget proposals that plan to scale back a program that gives tax breaks to local businesses.

Brown proposed in January to do away with the Enterprise Zone program entirely to help balance California’s budget. But Brown eased the hard stance against the program thanks to an unexpected windfall of $6.3 billion in revenue for the state.

Throwing the Enterprise Zone program a lifeline is one of several maneuvers intended to sway four Republicans lawmakers. Brown is seeking a two-thirds majority vote in favor of placing a five-year extension on vehicle licence fees and sales taxes. The tax extensions would raise an estimated $10 billion to help close California’s ongoing budget deficit.

Assemblyman Cameron Smyth, R-Santa Clarita, said he would vote against the tax extensions.

While Brown has been proactive in reducing state spending, Republicans want Brown to reform the state’s pension system and place a cap on state spending, Smyth said. Enterprise zones, meanwhile, help attract firms to California, he said.

“The governor certainly wants to find Republican votes, but he’s going to have to do more than what’s come out of the May revisions,” Smyth said. “Enterprise zones should be left alone.”

California Legislators Travel To Texas for Some Job Creating Tips

Friday, April 15th, 2011 | Enterprise Zones, Tax News

 

One of the biggest disadvantages facing California employers is, not surprisingly, the unions.

One big finding: labor unions are more powerful in California.

“Andrew Puzder from Carl’s Jr. talked about how the 8-hour work day and the meal breaks (required in California) are harmful, especially for restaurant businesses,” said Assemblyman Dan Logue, R-Linda. “Because they may get a truckload of ….teenagers at 2:00 and he’s got to tell half of his staff to take a break while people line up out the door.”

 Read about the entire trip here.

Senator Bob Huff Still Backing Enterprise Zones

Thursday, April 14th, 2011 | Enterprise Zones, Tax News

 

This is from today’s Sacramento Bee:

Sen. Bob Huff, R-Diamond Bar, said that little has changed in the Senate Republicans’ position. They still want pension and spending cap changes. They still dislike Brown’s elimination of redevelopment agencies and enterprise zone tax credits, as well as his change to the corporate tax formula. Huff said Democrats would need to make concessions before any deal could be struck.

Read it here.

Senate Republicans’ Demand List Includes Preservation of Enterprise Zones

Monday, March 28th, 2011 | Enterprise Zones, Tax News

 

The Senate Republicans made public their list of 53 demands in exchange for their vote to allow Jerry Brown to put the tax extensions on the June ballot.  Preservation of the EZ is on the list.  Assembly speaker John Perez said that the parties are now “farther apart” than they were before the list.

Howard Jarvis Taxpayers’ Assoc. Weighs in on the Budget

Tuesday, March 15th, 2011 | Enterprise Zones, Tax News

 

John Coupal issued a stinging missive today highlighting just how much Brown has caved to the Unions.  While everyone else is “sacrificing”, the Unions and Brown have made minimal cuts.  His rhetoric and his actions have been far from consistent.  And at the Unions, its business as usual.

Assemblyman Don Wagner Strongly Supports Keeping Enterprise Zones

Monday, March 14th, 2011 | Enterprise Zones, Tax News

 

Today, Assemblyman Don Wagner came out in favor of maintaining the Enterprise Zone program – and he doesn’t have on in his district.

By repealing the tax credits that fuel enterprise zones, California’s many employers who took the state at its word, located and grew their businesses in such zones, and have helped improve some of our struggling communities will instead find their tax bills climbing dramatically. This will leave them with less in their budgets for payroll, benefits, capital improvements and hiring.

At a time when California has the nation’s second highest unemployment rate, we will see more people collecting unemployment insurance rather than paying taxes. Additionally, businesses that set up shop in enterprise zones, will suffer from decreased productivity or have to shut down, thereby further reducing state and local revenues.

Read the full article.

Small Business Leader Defends EZ

Monday, March 14th, 2011 | Enterprise Zones, Tax News

 

Bill LaMarr, executive director of the California Small Business Alliance, deftly responds to the Bee’s Board about teh EZ:

A March 8 editorial in The Bee (“Insiders vow lawsuits to save perks and pork”) called on businesses to drop our opposition to the proposed elimination of enterprise zones.

If someone tries to steal your property, you defend yourself and stop it.

The proposal to eliminate enterprise zones is like taking someone’s property and it’s illegal.

The state promised thousands of California companies that if they invested in enterprise zones they would receive tax credits. Eliminating them after businesses made those investments is a breach of contract. That’s why the state will be sued if it repeals enterprise zone tax credits.

But this is more than just a legal issue. Saving enterprise zones is essential to the state’s economic recovery. The program has created or saved more than 1 million jobs.

Read the full article here.

Another Perspective on EZs

Monday, February 28th, 2011 | Enterprise Zones, Tax News

 

Matthew Mahood of the Sacramento Metro Chamber sheds some important light on the EZ debate, particularly as cast by Dan Morain.  Mahood, a member of the business development community, points out three important points:

1.  The number of the qualifying employees is small compared to the total employee workforce and employers only receive the credit for qualified employees;

2.  Surrounding states are aggressively courting California companies, evidenced by the large numbers of companies that have left the state.  Even if the critique is true that “major” corprations get tax credits, these corporations are also “major” employers who pay the lion’s share of the corporate taxes; and

3.     California needs more business incentives not less.  The ones we have work.

Read the full article here.

Broad Coalition Supports Enterprise Zones

Friday, February 25th, 2011 | Enterprise Zones, Tax News

 

Made public yesterday is a list of the members comprising a coalition formed in support of the Enterprise Zone Program.  The group includes many diverse and other times divergent groups who have come together to support the EZ program.  View the Joint EZ coalition list.

Governor Brown Has Ways to Make You NOT Talk

Wednesday, February 23rd, 2011 | Enterprise Zones, Legislation, Tax News

 

California’s budget problems dominate today’s political arena.   Without question, the biggest systemic problem draining the budget is one that most politicians are afraid to even approach.  Of course it’s the pension system.  No one seems willing to call out the patent iniquity in the public versus private workforce.  Jerry Brown on Friday did his part to quell the opposition to true pension reform by removing someone who championed for reform.

Gov. Jerry Brown has removed a California State Teachers’ Retirement System board appointee who helped author a controversial study that criticized the state’s largest public pension funds.

Brown’s predecessor, Arnold Schwarzenegger, appointed Cameron Percyto the CalSTRS board on Dec. 30. As a graduate student at Stanford, Percy was part of a team that wrote, “Going For Broke: Reforming California’s Public Employee Pension Systems. “Schwarzenegger often referenced the report’s highly disputed claim that California’s Big Three pension systems — including CalSTRS — faced a collective $500 billion in unfunded liabilities.

Brown’s spokesman said coldly: “These appointees served at the pleasure of the governor and their services were no longer required.”  Read the full story here.

When Brown took over, there was some hope that given the slim chance of a second term, Brown would make the tough decisions and try to change the systemic problems facing California.  Instead, he’s using the Unions to fund the ballot initiative and hasn’t touched them in his proposed budget while at the same time trying to eliminate the Enterprise Program which is proven to stimulate job creation.  By wedding himself to the Unions early on, he’s tainted his ability to make it seem as if his proposed budget is anything other than the usual pandering to the union lobbyists.  It’s unfortunate for Brown’s legacy and for California, it may be very costly as well especially if the unions are able to drive business out of the state by eliminating the Enterprise Zone Program.

 
 
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