Since joining the legislature in 2006, my focus has been on restoring job growth and prosperity to our state and region by supporting business-friendly policies that will attract and keep companies that generate the tax revenues upon which all state programs depend.
It is my continued hope that most legislators will come to realize that California's fiscal health rests upon sound economic and tax policies that encourage economic growth, generate private-sector jobs and provide opportunity for all our citizens.
As you know, California's tax rates are among the highest in the United States. This high level of taxation, combined with excessive business regulations, continues to drive businesses and individuals out of California and into more business-friendly states such as Texas and Arizona. Texas added 165,000 jobs during a period when California lost 1.2 million jobs. As a result, billions of dollars in tax revenues necessary tzo maintain our state's fiscal solvency have been lost. In terms of creating jobs, Texas is clearly doing something right. Reforming tax policies and reducing the regulatory burden on individuals and businesses stimulates the economy, helps create new jobs and results in increased state revenues.
Along these lines, I have introduced legislation this year that would help re-establish a business-friendly climate in California. Seen as "Job Creator" legislation by the California Chamber of Commerce, AB 1605 would encourage job growth through reducing the minimum annual tax on small business corporations, limited liability partnerships, and limited liability companies.
Currently, small businesses in California with gross receipts of $1 million or less are required to pay annual minimum franchise tax of $800 the first quarter of the year.
This $800 is owed and must be prepaid, regardless of whether the company is active, inactive or even makes a profit. Specifically, AB 1605 would seek to reduce this burden on small businesses by eliminating the annual minimum tax for the first year the business is operating. By reducing this initial franchise tax, small businesses are encouraged to grow and invest more capital in establishing and expanding their enterprise.
While I have introduced similar proposals each year during my tenure in the state Assembly, the partisan makeup of the Legislature may again prove problematic.
Many legislators talk about "jobs, jobs, jobs", but talk is cheap. Like me, legislators were sent to Sacramento to vote and fight for job creation. Given the opportunity to vote for measures that would grow California's economy, make our state more competitive, and get people back to work, the majority of legislators did the opposite. This "reality check" can clearly be seen on voting record "scorecards" produced by CalChamber and the National Federation of Independent Business (NFIB).
Don't take my word for it. Look at how state assembly members ranked on the most recent scorecards by visiting my website at http://republican.assembly.ca.gov/member/74/. You will discover for yourself which legislators simply talk about jobs and who actually votes to create and protect them.
It is my continued hope that most legislators will come to realize that California's fiscal health rests upon sound economic and tax policies that encourage economic growth, generate private-sector jobs and provide opportunity for all our citizens.
As you know, California's tax rates are among the highest in the United States. This high level of taxation, combined with excessive business regulations, continues to drive businesses and individuals out of California and into more business-friendly states such as Texas and Arizona. Texas added 165,000 jobs during a period when California lost 1.2 million jobs. As a result, billions of dollars in tax revenues necessary tzo maintain our state's fiscal solvency have been lost. In terms of creating jobs, Texas is clearly doing something right. Reforming tax policies and reducing the regulatory burden on individuals and businesses stimulates the economy, helps create new jobs and results in increased state revenues.
Along these lines, I have introduced legislation this year that would help re-establish a business-friendly climate in California. Seen as "Job Creator" legislation by the California Chamber of Commerce, AB 1605 would encourage job growth through reducing the minimum annual tax on small business corporations, limited liability partnerships, and limited liability companies.
Currently, small businesses in California with gross receipts of $1 million or less are required to pay annual minimum franchise tax of $800 the first quarter of the year.
This $800 is owed and must be prepaid, regardless of whether the company is active, inactive or even makes a profit. Specifically, AB 1605 would seek to reduce this burden on small businesses by eliminating the annual minimum tax for the first year the business is operating. By reducing this initial franchise tax, small businesses are encouraged to grow and invest more capital in establishing and expanding their enterprise.
While I have introduced similar proposals each year during my tenure in the state Assembly, the partisan makeup of the Legislature may again prove problematic.
Many legislators talk about "jobs, jobs, jobs", but talk is cheap. Like me, legislators were sent to Sacramento to vote and fight for job creation. Given the opportunity to vote for measures that would grow California's economy, make our state more competitive, and get people back to work, the majority of legislators did the opposite. This "reality check" can clearly be seen on voting record "scorecards" produced by CalChamber and the National Federation of Independent Business (NFIB).
Don't take my word for it. Look at how state assembly members ranked on the most recent scorecards by visiting my website at http://republican.assembly.ca.gov/member/74/. You will discover for yourself which legislators simply talk about jobs and who actually votes to create and protect them.