SACRAMENTO — Governor Brown said today that if given the opportunity he would sign into law a $1 billion tax increase on California job creators, as proposed in Assembly Bill 1500 by Assembly Speaker John Perez (D-Los Angeles.) The Governor also told the media today that the $1billion tax increase in AB 1500 is “not a tax increase, but a loophole” and therefore he would not be breaking his promise to Californians about raising taxes without their approval.
California Employers Against Higher Taxes spokesman Peter DeMarco issued the following response:
“To clarify – AB 1500 is a $1 billion tax increase as defined by the non-partisan Legislative Analyst, otherwise it would not require a 2/3 vote of the Legislature. It proposes to eliminate the primary method companies have been using to determine their tax liability for forty years – there is no ‘loophole’ to close.
“Given that California’s unemployment rate continues to hover at 11%, we hope that the Governor will recognize that every job matters, and that he needs a strong economy in order to help solve his $15 billion budget deficit. California job creators have been paying their fair share of taxes, and forcing a $1 billion tax increase will only add to the myriad of highest-in-the-nation costs of doing business here. Chief Executive magazine ranked California the worst state to do business for the 8th year in a row, citing such factors as energy, labor land costs, regulatory burdens, transportation congestion and taxes. The Governor needs to keep his promise to Californians by vetoing this tax increase should it come to his desk.”