By: Abel Maldonado
Many top states for business and jobs have no income or sales tax, but thanks to Brown, California has both, and they’re each higher than any other state
LOS ANGELES – As Californians continue to struggle with punishingly high unemployment and the job killing effects of Obamacare, the well-respected Tax Foundation has ranked the state 48th in terms of its climate for business and creating jobs.
Another hit for the Jerry Brown “everything is going great” storyline.
Former Lt. Gov. Abel Maldonado said “We have a lot of people out of work in California because we have a tax code that is too complicated, too unfair, and too punishing, especially for the small businesses Californians are counting on to create jobs. Add in frivolous lawsuits, greenmail tactics, and a state bureaucracy hostile to jobs, and it’s no surprise we have so many Californians out of work on Jerry Brown’s watch.”
The Tax Foundation found that the best states to start and grow a business spare their people one major tax, such as a sales tax or state income tax. Several states that have lured many Californians and employers away — such as Nevada, Florida and Texas – have no state income tax.
“Big businesses can afford all the lawyers and tax accountants they need to find and exploit loopholes and exemptions from high rates. But small businesses, which create the most new jobs when given the chance, don’t have the same advantage. It’s unfair and it’s keeping too many Californians in the unemployment line,” added Maldonado. “I’ve seen first-hand that the other party is never satisfied when it comes to taxes. When times are good they will spend the money, and when they’re not, they’ll always push for rates to go higher. That cycle needs to stop.”
MALDONADO SUPPORTS TAX REFORM
Last month Abel Maldonado proposed beginning the process of reforming California’s punishing tax code to make it more fair and more competitive. “Exemptions and loopholes keep tax rates high, while high rates create incentives for big businesses to lobby to expand them. The better approach is for lower rates, and a simpler, more predictable system that makes California competitive again,” said Maldonado.