An Extra $10 Billion Slapped on California’s Businesses,
“Are You Kidding Me?”
SACRAMENTO, CA – In today’s “Are You Kidding Me?” segment, Assemblyman Jones (R-Santee) calls on Governor Brown and the majority party to solve the looming $10 billion tax bill slapped on the backs of California’s businesses. During the recession beginning in 2008, California and most other states borrowed heavily from the federal government to ensure unemployment benefits to those who had lost their job. California alone borrowed more than $10 billion of the federal debt.
“This year alone the tax increase on employers will amount to more than $900 million – and the state will pay over $200 million in interest,” said Assemblyman Jones. “Friends, we just can’t sit around and do nothing anymore. California’s businesses shouldn’t have to pay for the mistake of California’s leadership.”
California’s leadership has not paid back this debt, or implemented another solution, and therefore, the federal government hiked payroll taxes on California’s businesses to gradually reduce the state’s debt. Several businesses in Assemblyman Jones’ district have stated the money they’re paying, which shows on their tax bills as a “reduction of credit,” could have been used to hire more employees or put directly back into the economy.
Rick Urban, Chief Operating and Financial Officer of Quality Controlled Manufacturing Inc., located in Santee, CA said, “It’s frustrating; the Governor has talked about a surplus. Anyone can have a surplus if someone else pays your bills.”
Comments 3
No need to raise taxes the State of California has 40 BILLION dollars in the Surplus Money Fund. Oh you have never heard of that before huh? Ya the media is controlled. Just google search California Surplus Money Investment Fund and you will see the State Controller’s website. There you can find the public reports and see the numbers yourself. Government owns it all folks and is highly lucrative. Don’t let them fool ya California is not broke.
Bravo Zulu Brian Jones, it’s about time some one mentioned this. By 2016, it may be impossible for small business’s to survive in Califorina with the increase in gasoline taxes, Obamacare requirements and all of the other left wing mandates on small business owners. Forget about evaluating the Economic Climate in California by job or population migration, evaluate it by AGI (adjusted gross income) migration. Since 1997 according to the IRS’s own statistics, California has a net loss (out of state migration) in excess of $36 Billion. The outflow trends are increasing, which will make it difficult to turn around given the strangle hold the lefties have on the California power levers.
Assemblyman Jones, I applaud you for bringing to light that Sacramento politicians are sitting on their hands. Doing nothing.
As you are a Sacramento politician, currently representing our district 71, other than complaining about Governor Brown and his cohorts, what specific measures would you enact to pay down this $10 billion in debt?
I seriously doubt California has a surplus in any true sense of accounting, if you can find accurate accounting anywhere in Sacramento. With all the unfunded pension liability I doubt California will see a real surplus any time soon so I don’t see money from a ‘surplus’. So what does California do to pay back this debt?
What’s your idea?
I personally think we need to tie future unemployment benefits to work. Give companies big tax incentives to hire people on unemployment benefits to get people working and cut business taxes. People want to work; very few just want the money from unemployment. I imagine you could convince some Democrats to join you and other Republicans on tax incentives to get unemployed people employed. Smart Democrats want people employed too. I think it’s too easy for both parties to just complain. People in our district want to see more. The middleclass is hurting, complaints are a start to understanding the problem but not solutions. We need solutions and leadership in Sacramento.
Tony Teora
Candidate for State Assembly