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Many Calif. Small Businesses Wary of Brown’s Prop 30

Aired 10/23/12 on KPBS News.

Small business groups in California are some of the leading opponents of Governor Jerry Brown’s November tax initiative. But the vast majority of California small businesses make less than the $250,000 a year income that would be subject to Prop 30.

Small business groups in California are some of the leading opponents of Governor Jerry Brown's November tax initiative. That's because many small business owners pay taxes as individuals, and some of their companies' incomes are high enough to be affected by Proposition 30.

James Wright is chief financial officer for a manhole manufacturer in the Los Angeles County city of Alhambra. He said his company would face a big tax increase if Prop 30 passes and the Bush tax cuts are allowed to expire.

"As a result of this, we're looking at freezing all new hires and we're looking at possible staff reductions to mitigate these additional costs," commented Wright.

However, the vast majority of California small businesses make less than the $250 thousand dollar a year income that would be subject to higher taxes under Prop 30. Franchise Tax Board data suggest only a few percent of the state's small businesses would see their taxes go up.

Comments

Avatar for user 'SoquelCreek'

SoquelCreek | October 23, 2012 at 4:33 p.m. ― 2 years, 2 months ago

I'm a small business owner. I don't make enough to worry about the income portion of the Proposition 30 tax hikes. However, I can see that Proposition 30 is just bad public policy and even worse tax policy. The income tax portion is an abuse of the democratic initiative process! I will VOTE NO ON PROPOSITION 30. Here are my reasons.
http://soquelbythecreek.blogspot.com/2012/07/california-prop7osition-30-governor.html

You don't get an economic mess like ours overnight. It takes years of neglect and mismanagement. Despite near supermajorities in BOTH Houses of the Legislature and owning EVERY major state-wide office, Governor Brown and the Democrats have enacted little real reform. Spending continues essentially unabated. Proposition 30 tax hikes are no reform either. WE NEED REAL REFORM, not higher taxes.

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Avatar for user 'SoquelCreek'

SoquelCreek | October 23, 2012 at 4:34 p.m. ― 2 years, 2 months ago

Also, just to put things into perspective, here are some relevant charts on California's current income taxes and sales taxes and how Proposition 30 will increase them.

CHART: California State Income Tax Rates and Proposition 30 Increases Compared to the MAXIMUM Tax Rate in 49 Other States
http://www.twitpic.com/a68drw/full

CHART: California State Sales Tax Rate and Proposition 30 Increases Compared to the State Sales Tax Rate in 49 Other States
http://www.twitpic.com/a68e2d/full

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