Opinion: California must not increase taxes as state faces budget deficit, economic uncertainty
After three straight years of record state budget growth, inflation and higher interest rates are bringing state finances back down to earth. The good news is prudent budgeting by state leaders has created healthy budget reserves and resisted expensive, long-term spending obligations. We are not facing a budget “crisis” — yet.
The Senate proposal would subject certain businesses to a 10.99% corporate income tax — the second-highest rate in the nation. High corporate tax rates put California companies at a tremendous competitive disadvantage. The 49 other states would benefit from California’s decision to make itself less attractive to employers.
California is competing globally to attract and retain investment and employers. Increasing the corporate tax rate when the rest of the world is reducing rates is counterproductive. It fails to recognize this trend in taxation, putting California out of step with the economies that are looking to lure California investors and jobs.
These taxes would be detrimental to California as the state fights off the prospects of an economic downturn. Voters in 2014 approved a constitutionally protected rainy-day reserve to backstop the state budget. During good times, the Legislature and the governor deposited more than $30 billion in the rainy-day reserve. One of Gov. Gavin Newsom’s strategies to address the revenue slowdown is to stop adding to the rainy-day reserves.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Opinion: Colorado River water fight that pit California against the West may evaporate — for nowA bitter battle over historic water rights seemed inevitable in January. Then a series of huge rainstorms in the Golden State changed the debate.
Read more »
Opinion: I co-founded the California Innocence Project to bring justice to the wrongly convictedOpinion: I co-founded the California Innocence Project to bring justice to the wrongly convicted [Opinion]
Read more »
Senate Republicans: Raising state taxes on corporations could chase businesses out of CaliforniaGuest commentary: At a time when other states are offering tax incentives to entice businesses to relocate to their state, the Senate Democrats’ proposal ostensibly shows them the door. 📝: RogerNiello
Read more »
First RSV vaccine to protect infants wins backing of FDA panelThe first vaccine to protect babies from the respiratory virus RSV is a step closer to approval, after a panel of the Food and Drug Administration's outside vaccine advisers voted to back the safety and effectiveness of a new shot developed by Pfizer.
Read more »
SEAN HANNITY: What did the FBI do to protect the Capitol on January 6?Fox News host Sean Hannity voices his concerns about the direction of the FBI and reflects on its handling of the January 6 Capitol breach on 'Hannity.'
Read more »