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Gov. Jerry Brown Rolls Out Jobs Plan

California Governor Jerry Brown is rolling out a new jobs plan that includes changes to corporate taxes as well as expanded tax breaks for business. But its chances for passage in the legislature are slim.

Brown’s plan would expand a tax credit for small businesses that hire new employees. It would also give companies a sales tax break on the purchase of manufacturing equipment. But the centerpiece is something he’s tried unsuccessfully to win Republican support for in the past: He wants to require all businesses in-state or out-of-state to base corporate tax payments on their sales in California.

“But I’m going to ask the republicans this time to join with me, join with the business community in freeing up money that is encouraging job flight and making it available for job growth," Brown says.

Currently companies can choose a different tax formula that allows some to pay less tax. Brown says the change would generate one billion dollars a year, which would fund the other tax breaks. GOP Assembly Leader Connie Conway calls the Governor’s plan “too little, too late.” She says it’s not necessary to increase taxes to provide business tax breaks.


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