According to the Los Angeles Times, Governor Jerry Brown is “leaning against” a proposed deal to bring an estimated 7,000 Amazon.com jobs to California. The Governor is concerned that a deal would somehow cost the state revenue.

If the Governor truly believes the ‘Amazon Tax’ is going to generate millions in revenue for the state this year, he’s mistaken. Board of Equalization staff have determined that the projected $200 million in revenue will not materialize this year.

As of today we’re not aware of a single online retailer that has registered with BOE to collect sales tax because of AB 28X. According to Board of Equalization staff, the number of out-of-state registrations in July 2011 was actually lower than July 2010.

Additionally, should a referendum qualify for the ballot, the law would be suspended until a vote of the people in June or November of next year. That would mean the ‘Amazon Tax’ would be a guaranteed money loser this fiscal year, since terminated affiliates will pay… Read More

I have a question. I mean this in all sincerity. I ask it without intending a drop of cynicism. My question is this: How do tax increases create jobs?

The question is prompted by the governor’s news conference on August 25. It is no secret that California has a serious jobs problem. Our unemployment rate is the second highest in the nation, and that understates the problem as our jobless rate does not include (1) those who have given up searching for jobs, and (2) those who are underemployed and seek full time work but cannot find it because of our anemic economy. Persistent joblessness destroys our economy, our communities, and our families. For that reason, the governor and Democrat leadership have promised to focus on the jobs problem in the last two week of the legislative session.

It is about darn time. The GOP months and months ago proposed dozens of pro-jobs and pro-economic growth bills. But, as I detailed in my last column, the Democrats killed all of those bills. And now they want to focus on jobs? Welcome to the issue, guys. Better late than never.

Except maybe not so, which brings me back to taxes. The governor and Democrat… Read More

On the very day Governor Brown spoke about job creation, legislators are concocting an outrageous ploy to prevent the people from voting to overturn the ‘Amazon Tax.’

Clearly these lawmakers are afraid the public is poised and ready to vote down the failed ‘Amazon Tax’ that is costing our state jobs.

Instead of continuing their attack on out-of-state online retailers, the Governor and Legislature ought to be asking these companies how we can work with them to get Californians back to work.… Read More

Even as Governor Jerry Brown lifted his pen today to sign the so-called “Amazon Tax” into law, thousands of affiliates across California were losing their jobs.

Major out-of-state retailers like Amazon.com and Overstock.com are terminating their California affiliate advertising programs in response to this legislation. I’ve been warning for months that this would happen, but apparently these warnings fell on deaf ears.

The so-called ‘Amazon tax’ is truly a lose-lose proposition for California. Not only won’t we see the promised revenues, we’ll actually lose income tax revenue as affiliates move to other states.… Read More

Governor Jerry Brown and legislative leaders are hoping that a surge in new revenues will help them avoid triggering additional budget cuts.

But it’s hard to imagine their budget numbers working when California is racing to become the nation’s unemployment leader.

We need jobs to spur revenues, but burdensome taxes, fees and regulations continue to hold back California’s economic recovery. The Governor and Legislature need to wake up to the reality that their economic policies are destroying California’s competitiveness.

If the Governor and Legislature want to see growth in revenues, they need to get Californians back to work. We need to bring private sector jobs back to California instead of driving them away.… Read More

Today I called upon Governor Jerry Brown to veto the so-called “Amazon Tax” recently approved as a budget trailer bill by the Legislature. You can read my letter below or here.

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June 17, 2011

Dear Governor Brown:

I am writing to request your veto of Assembly Bill 28X (Blumenfield), the so-called “Amazon Tax.”

As an elected member of the State Board of Equalization, the agency responsible for use tax collection, I am concerned that in its hunger for revenues the California Legislature is traveling down a legally suspect and dangerous path. Rather than educate California taxpayers on their use tax obligations when making purchases from out-of-state sellers, the Legislature is stretching the definition of nexus to the point of absurdity and to the detriment of California’s economy and jobs.

Proponents of AB 28X claim it will “create fairness” by “leveling the playing field” between brick and mortar retailers and online sellers and generate $200 million in new revenues for the state. But in reality the measure… Read More

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