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I received a statement from Assemblyman Jim Nielsen regarding a piece of legislation authored by Assembly Speaker John Perez that would change the “single sales factor” system of taxation in a way that would cause certain out-of-state businesses that do business in this state to get hit with a big increase in the taxes that they have to pay.  Nielsen also sent along a California Republican Party resolution on this matter, adopted at the last CRP Convention, which is also below.

Asm. Jim Nielsen

“Governor Jerry Brown said that he thinks Assembly Speaker Perez’s $1 billion tax increase on companies for middle class scholarships is “a good idea.”  This just a day after he capitulated to the public unions’ demands by incorporating the worst portions of their tax hikes into his plan.  Families, business owners, students and taxpayers should be fully aware of the coming battle in 2012: Jerry Brown, legislative Democrats and the unions are launching a nuclear tax attack on California.

The first wave is Perez’s AB 1500, a $1 billion tax increase on companies that create jobs, pay taxes on their property, sales and payroll receipts, and have employees in California.  Republicans must unite against the Speaker’s social engineering experiment and oppose this tax increase.  I’ve attached a copy of the California Republican Party’s resolution that calls on GOP legislators to oppose this bill.  Now is the time for us to stand up and fight!”

Here is the resolution passed by the State GOP…  (If it seems wordy, Mike Spence did submit this…)

CALLING ON ASSEMBLY AND SENATE REPUBLICANS TO OPPOSE A $1 BILLION TAX INCREASE ON JOB CREATING BUSINESSES IN CALIFORNIA
Submitted by: The Honorable Mike Spence

WHEREAS, California Republicans support every reasonable effort on the part of all governments and taxpayers to limit taxing and spending, and that the purpose of taxation is to fund the constitutionally mandated functions of government, not to “redistribute wealth,” or to fund ever increasing social programs; and

WHEREAS California Republicans believe a requirement for our state to economically prosper and encourage job creation is that businesses must be allowed to grow without the constraints of excessive taxation; and

WHEREAS, in 2009 during one of the worst economic crises in California history the California Legislature passed a bipartisan measure with near-unanimous support that provided anew option to companies that do business and create jobs in California on how to pay their fair share in taxes; and

WHEREAS, previously, companies reported and paid taxes based on their property, payroll and sales tax receipts and the Legislature made a change to the tax code to allow a new option based solely on sales receipts, because while not all companies are structured the same they all have one thing in common, which is they provide good paying, and desperately needed jobs in California; and

WHEREAS, in 2010, Democrat special interest groups spent millions of dollars attempting to gain voter approval of Proposition 24, a$1 billion tax increase on job creating companies that would have reversed the Legislature’s 2009 legislation; and

WHEREAS, California voters overwhelmingly rejected this blatant attempt to raise taxes and unfairly penalize job creation during one of the worst economic times in our Golden State’s history by rejecting Proposition 24 in 2010 by two million votes – 58.1% to 41 9%; and

WHEREAS, in 2011 Governor Brown and legislative Democrats tried again to pass this tax increase (AB XI 40, SB 115) but failed to get enough votes in the Senate. According to the Senate Republican Analysis, SB 115 “contains a $1 billion TAX INCREASE on businesses that contribute significantly in California.” (9/9/11); and

WHEREAS, in 2012, Assembly Speaker John Perez has introduced AB 1500 which would force every business to pay taxes solely on the basis of sales receipts. This “one size fits all” approach drops a$1 billion tax increase on businesses operating in California that provide products critical to middle class families like paper products, diapers and other manufactured items; and

WHEREAS, a fundamental principle of the California Republican Party and all Republican elected officials is based on Proposition 13, which requires a 2/3 vote of the Legislature to pass any tax increase;

NOW, THEREFORE, BE IT RESOLVED, that the California Republican Party calls on every elected Republican in the California Assembly and Senate to oppose AB 1500 at every opportunity; and further

RESOLVED, that the California Republican Party calls on every elected Republican in the California Assembly and Senate to recognize that any further attempt by Governor Brown and/or legislative Democrats to pass a similar bill that undoes their 2009 legislation is a$1billion tax increase on companies that already pay their fair share of taxes and create California’s desperately needed jobs; and further

RESOLVED, that the California Republican Party calls on every elected Republican in the California Assembly and Senate to vote against any further attempt by Governor Brown and/or legislative Democrats to raise this tax, and not negotiate any “deal” that would raise any tax as part of a state budget agreement in 2012 or thereafter.

This entry was posted on Tuesday, March 20th, 2012 at 11:00 am and is filed under Blog Posts.