Initiative Update:
USC Professor Says Proposition 24 Will Cost California 144,000 Jobs

Repealing the business tax updates approved with bipartisan support of the Legislature in 2009 will cost California 144,000 jobs and $440 million in annual tax revenues, according to Charles Swensen, a University of Southern California economics professor. Professor Swensen discussed his findings July 15 during a roundtable discussion with the media.

Proposition 24, an initiative filed by a government employee union – the California Teachers Association – would repeal the 2009 legislation, thus doing away with the single sales factor election, improved tax credit utilization and net operating loss carryback.

Based on his study of the effect of the single sales factor adopted in other states, Professor Swensen said that Proposition 24 would harm the state's business climate. He noted that California's recent tax changes are broad-based and affect all businesses, large and small, so the damage from repealing the changes also would be broad-based.

Cal-TaxReports, July 19, 2010

Initiative Update: USC Professor Says Proposition 24 Will Cost California 144,000 Jobs

Initiative Update:
USC Professor Says Proposition 24 Will Cost California 144,000 Jobs