CA: Business the big winner in California budget plan (says the LA Times....)

Los Angeles Times ^ | February 14, 2009 | Evan Halper

[Ernest_at_the_Beach]

Firms would get nearly $1 billion in breaks, while the average person would pay higher taxes five ways. Republicans say the plan would create jobs, but others dispute the claim.

Reporting from Sacramento -- The average Californian's taxes would shoot up five different ways in the state budget blueprint that lawmakers hope to vote on this weekend. But the bipartisan plan for wiping out the state's giant deficit isn't so bad for large corporations, many of which would receive a permanent windfall.

About $1 billion in corporate tax breaks -- directed mostly at multi-state and multinational companies -- is tucked into the proposal. Opponents say the breaks will do nothing to create jobs, and the Legislature has rejected such moves repeatedly in the past. But now, to secure enough Republican votes to pass a budget that would raise taxes on everyone else, the Legislature is poised to write them into law with no public hearings at a time when the state treasury is almost out of cash.

[Ernest_at_the_Beach]

fyi

[aSeattleConservative]

God, you can flush anytime now.

[ncalburt]

Who believes a vowel printed from this DNC propaganda outlet ? This Obama state media outlet is still sitting on the Obama terrorist toast video !

[Brilliant]

Propaganda. It’s one of those distorted perspectives that if the government let’s you keep 5% of your profit, then they are giving you a break.

[PeterPrinciple]

My interpretation that it is a partial move in the right direction. But any corporate executive will look at the TOTAL tax rate before moving a business to CA. Bottom line is I don’t think it will make a difference.

[BenLurkin]

The libs may be unhappy about the taxing arrangements — but as long as they refuse to eliminate the handouts they really have nothing to complain about.

$38 billion in the last budget for “Health and Human Services”. Start by axing that!

[autumnraine]

I think fundamentally I believe that the tax cuts would help create jobs, but I also think CEO’s have become an albatross to business and people see one or two people taking home millions, while the company is failing. So one or two really rich people gain the benefit of the tax break while the rest of us are just screwed.

I don’t know what to think anymore.

[Ernest_at_the_Beach]

Found this in the Times article:

*******************EXCERPT**********************

The break for small businesses that hire new employees would cost the state $200 million a year. It would provide a $3,000 tax credit for every full-time employee hired by a company with 20 or fewer workers. Republican lawmakers who pushed for the proposal said it would create jobs.

[Ernest_at_the_Beach]

I think they are doing some good to slow down the companies moving out....not sure it does anything to bring new companies in.

[goldstategop]

Republicans want to reward the rich and soak Joe Six Pack with $14 billion of new taxes. Way to go, GOP!

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus

[umgud]

I don’t know if this is the right move or not. I do know that handing out breaks should go to those most capable of creating jobs. When is the last time you saw a poor person create jobs?

[genghis]

the only thing that could save california is if a nuclear bomb exploded in sacramento when every all the law makers where making speeches.

[goldstategop]

When was the last time you saw an economy recover with $14 billion worth of new taxes?

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus

[Ernest_at_the_Beach]

Posted this also:

CA: Calif. lawmakers set Valentine's Day budget vote

Related thread from yesterday:

California budget critics turn up pressure on lawmakers

[Navy Patriot]

The purpose is to keep existing business from leaving the state.

The state could care less about the ordinary citizen, they are much less able to leave, and have less control over their money that is paid directly to the state, and less ability to take their jobs out of state.

Top tier corporate execs can telecommute from luxurious Nevada offices 185 days a year and pay no CA taxes. the cubicle peons cannot. Keep the corporation in CA and punish the ordinary, while the exec drives a $500K car in CA with Oregon plates for $34 a year. Dilbert, meanwhile, pays for state of the art medical for felons and illegals, but none for himself.

[OafOfOffice]

Do'hbama better not cost the states anything for his pay my way porkulus or all states will declare sovereignty as some ahve already and he will be on his own. I hope they are doing it anyway. I have a feeling Pelosi and Waters will never California to declare.

These states see the writing on the wall and they want no part of it. Feds cannot force them to do anything against their will.

[cc2k]

---

The tax credit for film companies is intended to keep productions from moving out of state. It would deprive state coffers of $100 million a year.

---

This completely ignores how much the state coffers would lose if they took their business to another state. I'll bet the state comes out ahead in an objective analysis.

[superjc]

“This is a pure giveaway for the vast majority of corporations that will benefit,” said Lenny Goldberg, executive director of the California Tax Reform Assn., a union-backed nonprofit. “They will walk away with a great deal of money at everybody else’s expense.”

KEEPING YOUR OWN MONEY, IS A GOVERNMENT GIVEAWAY?

Only if you agree it’s “theirs” to begin with.

[bt_dooftlook]

Psst, LA Times - corporate taxes are built into the prices paid by customers, or the business goes bust. So making taxpayers aware of how much they already pay in taxes is a bad thing?