California State’s companies paying $10 billion in higher taxes

Orange County Register Blog ^ | June 16, 2009 | Jan Norman

[Oldeconomybuyer]

Here’s how the Cal Chamber of Commerce pencils out the increased costs to businesses:

* $2.5 billion by requiring businesses to pay 20% strict liability penalty on top of existing penalties for underestimating  tax liabilities of $1 million+.  The extra penalty went into effect June 1. Businesses will tend to overpay their taxes giving the state an interest-free loan with no deadline for refunds.

* $2.4 billion for additional sales and use taxes because of the 1-cent hike starting April 1. Businesses pay 40% of sales taxes, the chamber says.

* $2.3 billion because of a requirement that  instead of paying estimated income taxes in four equal payments, businesses must pay 30% in each of the first two quarterly periods and 20% in the last two.

* $1.6 billion because businesses cannot deduct net operating losses for the 2008 and 2009 tax years. Very small businesses are exempted.

* $1 billion for the 0.25% hike in the personal income tax. This one impacts businesses that are limited liability companies, Subchamber S corporations and partnerships because profits are passed to the owners who pay taxes on them through their personal tax returns.

* $900 million for a two-year limit on all business tax credits including research and development and enterprise zone credits. The cap on credits is half the taxpayer’s liability.

* $425 million for increased vehicle license fees. Businesses pay approximately 25% of these fees.

* $360 million by requiring limited liability companies to pay their annual fees during the first six months of the current tax year. The new deadline may result in some businesses having to make a double payment. If a business underestimates the fee owed, it will pay a 10% penalty

[BubbaBobTX]

The Chamber of Commerce here in Austin TX has announced that they have had a steady stream of companies from California intersted in relocating to Austin since the first of the year. Do you think this might be part of the reason?

[BubbaBobTX]

The Chamber of Commerce here in Austin TX has announced that they have had a steady stream of companies from California intersted in relocating to Austin since the first of the year. Do you think this might be part of the reason?

[Oldeconomybuyer]

Yes. They’re relocating to TX and other states.

[Publius6961]

Businesses pay 40% of sales taxes, the chamber says.

And the freakin' fiction continues...

Business don't pay taxes, the consumers who use their products and services do!

But the idiot California voters are still clueless. Most are cheering that "dirty business is finally getting dinged."

Did I mention that the California voters are imbeciles?
Invisible taxes don't really exist.

Hmmmm. OK.

[fr_freak]

The Chamber of Commerce here in Austin TX has announced that they have had a steady stream of companies from California intersted in relocating to Austin since the first of the year. Do you think this might be part of the reason?

It's been happening for years, if not decades. Part of the reason Reno became such a boom town was because so many California businesses from the Sacramento area realized they could save serious money by moving an hour and a half away over the state line.

[RC2]

Come on now folks. You have to give politicians in California a little credit. They are experts at chasing business out of the state. Only other state that is as good as they are is New York.

[PA-RIVER]

“Business don't pay taxes, the consumers who use their products and services do!”

So, when CA raises the taxes, and consumers refuse to buy the product, the manufacturer then relocates to produce at a more attractive price for the consumer.

Its a Win Win for the consumers and the other 49 states.

We should be cheering this on ....