Today I called upon the Governor and Legislature to enact a six month interest and penalty holiday to help struggling small business owners and other taxpayers who have fallen behind on tax payments during the recent economic downturn.

The state’s job is to collect taxes, not penalties and interest. Too often heavy penalties and punitive interest charges actually make it more difficult for struggling taxpayers to catch up on late payments. If we want more jobs, we need to help California’s job creators get back on their feet.

Instead of increasing taxes or cutting vital programs, we ought to learn from the experience of other states where these programs have successfully raised millions of dollars. I believe a California program would generate several billion dollars of revenues for state and local government.

A tax interest and penalty holiday would be a win-win for both California’s job creators and state coffers.

Below is the text of my letter.You can find mypress release here.

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June 10,… Read More

The State of California is currently sitting on billions of dollars of uncollected debt that could be worth hundreds of millions of dollars on private debt markets. Rather than raise taxes on the hardworking people of California, state leaders should sell off debt to raise the cash we need—just like private businesses do.

Selling aging debt is a common practice in the private sector and has also been used successfully by many local governments. Selling debt makes a lot more sense than selling buildings you have to turn around and lease back.

The sale of these assets could provide much-needed one-time cash. Combined with rising revenues, these dollars could help protect priority programs and eliminate the perceived need to impose higher taxes on struggling Californians.

Today I called upon the Governor and legislative leaders urging them to consider such a sale in their ongoing budget negotiations.

Below is the text of my letter.

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June 6, 2011

Dear Governor Brown and Legislative Leaders:

I am writing to suggest monetizing a portion of the billions of dollars in debt owed the State of California as a possible… Read More

A key Senate tax committee today voted 9-0 to advance legislation I am sponsoring to empower California’s tax agencies to better assist struggling taxpayers.

The bill will help California’s job creators who are survivors of the worst economic downturn since the Great Depression and give tax agencies the needed flexibility to deal fairly with taxpayers who are victims of California’s economy.

More specifically, Senate Bill 228 (Wyland) would permit the Board of Equalization, Franchise Tax Board and State Controller to “withdraw” a lien when a taxpayer pays an outstanding liability in full—removing the lien from the taxpayer’s credit record.

Under current law, when a taxpayer falls behind on payments, California’s tax agencies may place a lien on that taxpayer’s personal property.

Once a taxpayer pays the outstanding liability in full, California tax agencies may “release” the lien. However, the release does not remove the lien from a taxpayer’s credit record,… Read More