Posted on 06/14/2012 9:15:16 AM PDT by 92nina
California Lt. Gov. Gavin Newsom and other politicians gathered in Sacramento yesterday to commemorate California’s annual Small Business Day. Conspicuously absent from the discussion and media coverage however, was the adverse impact that Gov. Jerry Brown’s tax hike package would have on small businesses in California if passed in November.
Gov. Brown, President Obama, and their ilk love calling for higher taxes on upper incomes in the name of “fairness” and raising revenue. Yet what they conveniently forget to mention is that raising income taxes, especially on upper income brackets, does great harm to the small businesses that are the backbone of the American economy. That’s because the individual income tax system is the one under which small businesses profits face taxation. Thus when Gov. Brown and President Obama talk about their proposals to raise taxes on “the rich,” they are really talking about raising taxes on small businesses and reducing those businesses’ ability to create jobs.
According to IRS data, of the nearly 6.6 million individual income tax returns filed in California in 2010 (the most recent year for which data is available), over 3 million of those returns were small businesses. However, this figure only reflects sole proprietors. When the share of small businesses made up of S-Corps and partnerships is factored in, it turns out that upwards of 3.8 million small businesses file under the individual income tax system in California and would see their taxes go up if Gov. Brown’s income tax hike passes this November. Gov. Brown is also seeking to add insult to injury with his proposed sales tax increase. For information on how sale tax increases disproportionately harm small businesses, click here.
Under Governor Brown’s initiative, these businesses would see a sizable increase in their already heavy tax burden. The California Legislative Analyst’s Office predicts that Gov. Brown’s proposed income tax hike will siphon $33.8 billion from the private economy over the next six fiscal years. Keep in mind that President Obama’s budget calls for higher taxes on the majority of small business profits. If both he and Gov. Brown have their way, it’ll be a rough year for small businesses throughout the Golden State. California small businesses simply cannot afford such an onerous rate increase when operating in a state that already possesses the second highest income tax rate in the country.
[Photo credit: San Diego Union-Tribune]
Read more: http://atr.org/california-gov-jerry-browns-tax-package-a6963#ixzz1xmiui2hg
Take this article and others I found to the fight to the Libs on their own turf; put the Left on the defensive at Digg and at Reddit and in Stumbleupon and Delicious
Texas, Iowa and Oklahoma must be loving this!
Agreed, businessmen and businesswomen fleeing the state can really boost some of the other states. But let’s hope those states have constitutions making it difficult to raise taxes and very hard to make new taxes. Otherwise Lefty Californians migrating could mess things up.
Isn’t it the ultimate goal of progressives to purge California entirely of the private sector so as to create a 100% government-run State?
Are there still any small businesses left in CA?
There are a lot of high inocme sports people like Tiger Woods and John Elway who are native Californians and have left and not returned because of the California state income tax. Hell, even O.J. Simpson moved to a Nevada prison.
Hey you lefty Kalifornians, you won't like it here in Arizona. It's too hot. Suggest you head north to Oregon or east to Nevada.
With silent lips. "Give me your tired overtaxed, your poor (business owners), Your huddled (conservative) masses yearning to breathe free (of tyrannical govt), The wretched refuse of your teeming shore (send those back south of the border), Send these, the homeless patriots, tempest-tossed (by liberalism) to me, I lift my lamp beside the golden door (of new opportunities)"
Oh my, now that’s clever.
The majority of California voters elected these Democrat dimwits with Jerry Brown king of the pack of thieves. There will be two less California voters (we did not vote for any Democrat)come this November as my wife and I move to Nevada. Adios suckers!
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