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California businesses fuming over retroactive $120M tax grab
Fox News ^ | 3/19/13 | Lee Ross

Posted on 03/20/2013 6:10:14 AM PDT by listenhillary

California's top-end taxpayers -- already steamed over a recent hike in the nation's highest state income tax -- are now fuming over a new $120 million retroactive tax grab on small business owners.

In December, the state's tax authority determined that a tax break claimed over the past few years by 2,500 entrepreneurs and stockholders of California-based small businesses is no longer valid and sent out notices of payment.

"How would you feel if you made a decision, which was made four years ago, (and) you absolutely knew was legally correct and four years later a governing body came in and said, 'no, it's not correct, now you owe us a bunch more money. And we're going to charge you interest on money you didn't even know you owed'," Brian Overstreet told Fox News from his office north of San Francisco.

Last year, Overstreet and his fellow investors sold Sagient Research Systems and immediately reported the sale to the California Franchise Tax Board, the state's version of the IRS. "It was good for the shareholders, it was good for the employees and good for those of us who founded it," Overstreet said about the sale of the data mining company. "We paid the tax based on the law at the time."

But the FTB changed its interpretation of the law after a state appeals court ruled unconstitutional a qualifying provision of the break requiring companies to maintain 80 percent of their workforce in California. Instead of asking the legislature for guidance on what to do, the FTB suspended the break in its entirety and ordered anyone who's claimed it in the last five years to pay up.

(Excerpt) Read more at foxnews.com ...


TOPICS: Extended News; Government; News/Current Events; US: California
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To: Grampa Dave

” A young relative, who used to work in the premium restaurants said Obozo health care is forcing many good waiters, cooks, chefs and others to have two jobs as employers are refusing to pay anyone for more than 30 hours per week to avoid the Obozo health care costs. “

This is happening coast to coast.


41 posted on 03/20/2013 12:10:34 PM PDT by stephenjohnbanker
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To: RedHeeler

Different part of the Bill of Rights ~ criminal law


42 posted on 03/20/2013 2:32:06 PM PDT by muawiyah
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To: listenhillary

retroactive tax need not be paid.

California needs a 9.6 earth quake at LA or San Francisco


43 posted on 03/20/2013 2:39:15 PM PDT by bert ((K.E. N.P. N.C. +12 .....The fairest Deduction to be reduced is the Standard Deduction)
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To: bert

Just an idea:

Seeing as how the Obama administration and the Democrat Legislature has passed the ACA which will impose fines if one DOES NOT purchase health care insurance, it’s time these businesses charge the STate of California a surcharge 3-5 times the cost of the tax for the state’s failing to purchase their products or services. Plus interest, late fees, and legal costs.

Democrats set the precedent. Let them live by it.


44 posted on 03/20/2013 2:56:30 PM PDT by Big Giant Head
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To: The Working Man

Sounds good to me (polishing my halo).


45 posted on 03/21/2013 5:11:55 AM PDT by Liz
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To: soycd

Those folks, could care less, about the next right thing. Ever.


46 posted on 03/21/2013 8:28:02 PM PDT by RedHeeler
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To: muawiyah

Huh? Good grief, take a breath.


47 posted on 03/21/2013 8:37:19 PM PDT by RedHeeler
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