Thursday, July 09, 2009 10:53:59 AM · by Syncro · 24+ views
California Republican Party ^ | Thursday, July 9, 2009 | Press Release
Posted on 07/09/2009 10:10:09 AM PDT by NormsRevenge
Four months ago, Californians were hit with the biggest tax increase in our state's history – more than $12 billion in new taxes on everything from income and sales to vehicle license fees. Since then, tax proponents have proposed 31 new taxes that they predict will generate more than $40 billion in the first year. On top of that, some legislators have singled out oil and tobacco products for massive new tax hikes. These are taxes that the people will pay, not just the corporations.
The Neighborhood Market Association represents more than 1,800 independent grocers and small businesses in California who have been and will be hit by many of these taxes, particularly tobacco taxes. Tobacco products, popular or not, are a key part of our business. These products draw customers to our stores and result in the sale of a variety of other goods. They drive sales, which ultimately leads to more sales tax revenue being collected for our state, and enable store owners to provide more jobs in their communities.
Charging a premium for tobacco products will also result in increased theft. One member of our association, who owns a convenience store in El Cajon, recently reported that more than $10,000 worth of cigarettes were stolen from his store by his employees. Not coincidentally, this occurred in the weeks following the imposition of a federal excise tax increase on tobacco products. An additional tax increase by the state will further encourage this type of crime.
The well-being of our businesses should matter to the community because, collectively, our members employ more than 21,000 people and generate more than $3.6 billion of gross revenue annually.
It's time tax proponents in the Legislature heard from California's retailers. In this economy, many retailers have folded, and others are fast approaching their breaking point. Asking retailers to absorb the impact of more tax increases is a perilous proposition. New taxes have the clear potential to drive down retail sales, further eliminate retail jobs and heighten our state's budget crisis.
“I have been forced to lay off 37 percent of my work force, including an employee who has been with me since 1981,” said Amir Oram, of the Market Place in City Heights. “No doubt about it, the economy is bad, but tax increases and the added cost of doing business are what worry me.”
Yes, our state faces an unprecedented budget crisis. But there is arguably no better way to grow revenue than through a robust economy – not through tax increases that could force weakened retailers to their breaking point and eliminate more jobs and businesses.
In the last election, voters made it clear that the tax-and-spend model is not the answer to California's budget crisis. In fact, our members have been clear that we need a break from higher taxes after what we've all been through the last few months.
“Our 2,000 small business owners and their 21,000 employees are depending on our wonderful public servants in Sacramento to do the right thing and not raise any more taxes in this terrible economic environment,” said Mark Arabo, President and CEO of the Neighborhood Market Association. “Raising taxes will only put more small businesses out of business and put more workers on the unemployment line. There is a solution for this complex situation, and making it more difficult for small businesses to survive is not it.”
“Business as usual” tax increases – under the present circumstances – could very well put us out of business.
The answer to this state's budget woes must be found elsewhere – in systemic changes that reduce expenses and eliminate waste, inefficiency and fraud.
California is now Mexico with legacy infrastructure.
They need to throw those “wonderful public servants in Sacramento” out of office.
“These are taxes that the people will pay, not just the corporations.”
HALLOOOOOOOO!!! Like what corporation is going to pay these taxes and NOT pass them on to the Consumer?
I heard via third party yesterday that the sheriff of Sacramento county has threatened that if he has to lay off 200 deputies due to budget cuts, he will begin issueing CCW permits.
If thats the case, its worth the state going broke.
Taxpayers in Mexi-Porn-ia should be allowed to pay their taxes with IOUs.
it will never happen.. the entire mess is and will continue to be blamed on Gov Schwartzenegger, who is certainly not blameless...
my crappy Backwoods cigars went for $4 a pack to $10 recently... so what’s it gonna be next $15? $20 ?
I gave up the good cigars in the 1990s due to the tax increases.
I can’t figure out why people stay in california unless they have no other choice. I guess it’s kind of like living in Zimbabwe...It’s home and you aren’t going to leave.
Only a corporation who operates in a market where they have no pricing power.
Like, oh, say, ag producers.
The signs need to be changed on the interstate to reflect the new owners. “Welcome to Mexifornia” land of Hope and Change.
RE: systemic changes that reduce expenses and eliminate waste, inefficiency and fraud.
Bingo! But the politicians will not go this route—I don’t think they know how. They don’t even know how to cut wasteful and duplicate agencies. They are stupid. It’s the tax and spend mentality that is pervasive. They just don’t get it. Some residents would like to leave, but can’t sell the home yet.
Sorry Samantha. Unless you’re a public employee union lobbyist or a radical leftist activist, the Legislature couldn’t care less.
“I can’t figure out why people stay in california...”
Its home and we continue to fight the good fight, but the time is coming...
I remember a time when this state wasn’t a stalinist gulag. We produced great men like Ronald Reagan and others. Remember, most of the whackjobs in this state came from OTHER states in the 60’s. Maybe YOUR state.
No business gets a tax that is not passed on to the customer thru higher prices.
NONE. NEVER.
Samantha Dabish, The only entity that pays taxes are the people.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.