Fighting to Keep Jobs in California
The stories continue to mount about California’s worsening business climate and the exodus of key companies, investors and top talent. And the assault on companies also continues, with legislation (AB 71) introduced this week to raise taxes on thousands of businesses statewide. We don’t expect it will be the last, with several other bills held over from last year to hike taxes on high-income earners and businesses still looming.
Over the past six months, the Bay Area Council has mounted an aggressive and targeted communications campaign to raise awareness among elected leaders about the harm new taxes will do to our economy and California’s long-term competitiveness, and to push back against them. Council CEO Jim Wunderman last Sunday joined NBC Bay Area’s Press:Here and host Scott McGrew and SF Business Times reporter Mark Calvey for a discussion on these issues and what’s at stake if we continue to recklessly pursue new taxes, regulations and other barriers. And we are launching a larger Business Climate Initiative to defend the California and Bay Area economy against further attacks, work with companies and government partners to promote jobs and economic growth and ensure the state’s competitiveness.
While some may argue (falsely) that only big companies and high-income earners are the targets, they ignore the devastating impact that losing these companies and workers has overall. Research by the Bay Area Economic Institute has found that each job in high-skilled industries supports more than four other jobs in a variety of service and other industries—from baristas and teachers to accountants and restaurant workers. And many of these service workers don’t have the luxury of working remotely when the companies and jobs on which they rely embark for other states.
Unfortunately, the state’s recent budget and growing tax revenue obscures California’s dangerous and outsized reliance on high-income earners and gives cover to elected leaders who would prefer to ignore the ruinous impact to our economy of chasing companies and workers out of the state. The Council is determined to keep this issue front and center and fight to protect our businesses, jobs and economy. To engage in our Business Climate Initiative, please contact Chief Operating Officer John Grubb.