Years of overtaxation and overregulation have given California the second highest unemployment rate in the nation. Even so some of our state lawmakers still believe that punishing success is a recipe for job growth.

Efforts by Assemblywoman Nancy Skinner (D-Berkeley) and other Democrat legislators to increase taxes on high income earners will actually punish California job creators and worsen volatile state revenues.

According to the Tax Foundation, California already has the third highest income tax rate and one of the most progressive tax structures in the nation. The top one percent of California’s income earners have incomes of $500,000 or more per year and pay up to 50% of all income tax revenues received by the state each year, according to a report by the non-partisan Legislative Analyst’s Office.

The battle cry to ‘tax the rich’ is really code for taxing California’s job creators, including many small businesses that are struggling to survive. Rather than help California’s budget, higher taxes will reduce revenues and drive even more job creators out of our state or out of business.

The Tax Foundation also… Read More

I have reviewed the Governor’s latest budget proposals related to Enterprise Zones, and they are as bad as the original proposal that would have eliminated the program altogether.

It’s Still a Tax Increase:

First of all, this would still impose a tax increase on thousands of California businesses that would be retroactive. Many of these businesses have survived thanks in large part to the Enterprise Zone program, and have kept their employees working in California during the economic recession.

High-Tech and Bio-Tech Industries Harmed:

The Governor’s limitations on tax credit carryovers would be particularly harmful to startup companies especially in the high-tech and bio-tech sectors that would be unable to utilize the Enterprise Zone tax credits.

Governor’s Enterprise Zone Plan Would Force Job Layoffs:

The small business community has reviewed the Governor’s plan and they are alarmed. A small printing firm in San Diego had this to say about it: “Thanks to Enterprise Zone tax credits, we were able to retain employees that we otherwise would have been forced to lay off… Read More

As the lead legislative intervenor challenging an August 2009 federal court order reducing California’s prison population, I am dismayed by the U.S. Supreme Court’s decision today in Brown v. Plata.

The decision to force California’s prisons to release 46,000 convicted felons is a historic attack on the constitutional rights of states and the liberty of all Californians.

By flooding our neighborhoods with criminals, the Court will make one of highest taxed states in the nation among the most dangerous as well, further tarnishing the California dream.

At a time when law-abiding Californians cannot find jobs, it’s hard to imagine how convicted felons will do anything other than return to a life of crime.

But at least Justice Kennedy can sleep easier at night knowing that none of these dangerous felons will be released in his neighborhood.… Read More

Overtaxed Californians will find little to cheer in the Governor’s revised budget proposal.

Despite the Governor’s concession to postpone higher income taxes for a year, he continues to push for legislative approval of higher sales taxes and car taxes this year.

And although the Governor dropped his effort to abolish enterprise zones—and the jobs they create—he continues to miss the big picture: Californians need jobs, not higher taxes.

Our best hope for new revenues isn’t higher taxes, but new jobs fueled by a recovering economy. Unfortunately, the Governor has yet to truly lift a finger in the fight for California jobs.… 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