Another Tax Hike Rears Its Ugly Head
Not again. Another misguided tax hike proposal has reared its head in Sacramento as California sits on record revenues, robust reserves and escalating concerns about the growing flight of jobs and investment to other states. The Bay Area Council this week issued the following statement in response to legislation – AB 310 (Alex Lee, Milpitas) and ACA 6 – that would authorize a statewide ballot measure in 2022 to raise taxes in a state that already holds the dubious distinction of having the nation’s highest personal income tax and highest corporate taxes among our competitor states.
“Rather than trying to gin up new ways to drive away jobs, talent and investment that are critical to our economic recovery, how about we focus on ways to build and expand wealth and opportunity for more Californians?” Council CEO Jim Wunderman said. “Piling on more taxes when the state is raking in record revenue and sitting on robust reserves is completely backwards thinking. State revenues and expenditures have almost doubled over the past 10 years while income inequality and poverty have worsened. Jobs and investors are already fleeing the state’s onerously high taxes, unaffordable housing, rampant homelessness and excessive regulations. Other states that smell California’s economic vulnerability are licking their chops at the sight of reckless legislation like this.”
News of the new tax scheme came as the Council this week convened leaders of more than 60 business, industry and trade associations from across the state in a first-of-its-kind effort to unify California’s business community to address the headwinds facing the state’s economy. The coalition is being organized under the leadership of Clint Reilly Holdings Chairman and President Clint Reilly. To engage in the Council’s business climate work, please contact Chief Operating Officer John Grubb.