The California Teachers Association (CTA) submitted more than 800,000 signatures May 12 for its initiative (09-0058) that would increase taxes by repealing recent business incentives approved by the Legislature. Since the number of signatures collected far exceeds the 433,971 needed, the initiative is expected to qualify for the November ballot.
The incentives targeted by the union were part of the 2009 budget package. They allowed businesses a carry-back period and lengthened the carry-forward period for net operating losses, increased utilization of tax credits among affiliated businesses, and changed the corporate tax formula by adding an elective single sales factor – so a company's tax liability is not based on payroll, the number of workers who are employed or hired, or if an employee is given a raise.
Some of the incentives that the CTA seeks to repeal have yet to take effect. It is estimated that the initiative would increase business taxes by $2 billion.
Opponents of the initiative, including Cal-Tax, have organized a campaign committee called "Stop the Jobs Tax." More than 95 other businesses and organizations have joined this effort.
"The way out of this recession is by creating jobs and growing the economy, not increasing taxes on California families and the businesses that create these much-needed jobs," Cal-Tax President Teresa Casazza said. "State-by-state comparisons show that Californians already bear a very high tax burden, and businesses are struggling to stay afloat, so it is outrageous to think that piling on billions in new taxes would help the people of this state."
Cal-TaxReports, May 17, 2010
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