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.”