The commentary below was penned exclusively for the FlashReport by State Senator Bob Dutton, the Vice Chairman of the State Senate Budget Committee…
Democrats Tax Plan Is A Tax On Job Creation And Economic Opportunity
By Senator Bob Dutton
I try to be optimistic. I have always believed it is better to look at the positive side of things. Better to look at the glass as half full instead of half empty. But I never thought anyone would seriously suggest $10 billion dollars in tax increases when Californians are paying record high gas prices and home prices are in free fall. California also has one of the highest unemployment rates in the country because good paying jobs are leaving this state.
Democrats say taxing the wealthy and businesses are a painless way to generate the additional tax dollars to fund their pet programs. What they are really proposing is a tax on job creation and economic opportunity. In a down economy the absolute worst thing you can do is make it more difficult on those people and business who will lead the recovery.
Republicans introduced an economic recovery package months ago that the Democrats have so far rejected. Anyone interested in seeing the many proposals Republicans have introduced can go to www.SenateRepublicanBudget.com .
While Democrats seem oblivious to the challenges facing California businesses, other states, particularly Nevada, have taken note.
For example, while the state corporate income tax rate in California is 8.84 percent, it is zero in Nevada. While Nevada businesses pay nothing in personal income, franchise and capital gains tax, California businesses pay up to 9.3 percent in personal income tax and capital gains tax. Those who want to read more about these depressing statistics can click here .
Democrats must not remember 1991. As most of you know that was the year Governor Wilson and the Legislature approved $7 billion in tax increases to close a budget gap. But instead of taking in more revenue, the state actually took in fewer dollars the next year. I believe the same thing will happen again this year if this spending plan were adopted.
I don’t believe there is one Republican vote for this budget proposal. It is the middle of July and well past time when we should be exchanging serious proposals. We will reach a budget deal –every legislature has- but we will not get there by placing an unbearable tax burden on the backs of Californians.
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