Many Calif. Small Businesses Wary of Brown’s Prop 30
Tuesday, October 23, 2012
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.
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