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| FOR IMMEDIATE RELEASE |
Contact: Matt Rexroad
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| 7/26/2008 |
Phone: (916) 648-1222 |
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Perspective: Sacramento’s Attempt at Making California #1 in Taxes
Recipe for Recession and Reverse Gold Rush By Gabriella Holt
Across this state, thousands of California families are hurting. They are concerned about losing their jobs and homes. As fuel prices and the cost of doing business in this state continues to rise, small businesses are cutting expenses and often times laying off workers driving up the state’s unemployment rate.
California’s current $17 billion deficit has the Governor calling for park closures, cuts to health care and other reductions in social services. The last thing Sacramento needs to do is increase the economic burden. People need a break, and we shouldn’t have politicians trying to make the situation worse.
How much more can we ask from our already struggling families, students, small business community, elderly and the poor?
The legislative majority is proposing a $9.7 billion tax hike on businesses and "the rich." The marginal tax rate would be increased from 10.3% to 12% making it the highest in the nation. The middle class will be pushed into the higher "rich" income tax bracket every year as a consequence of the legislature’s proposal to eliminate the indexing for inflation.
Additionally, Sacramento politicians want to raise taxes on businesses in the face of one of the worst real estate recessions in our history. Tack on the corporate income tax rate hike from 8.4% to 9.3% and you have the perfect recipe for economic recession.
What can we expect as fallout from California’s over-regulation and call for higher taxes? From 1996-2005 1.3 million more Americans left the Golden State than moved in (Census Bureau data). This disturbing trend has been described as "the reverse gold rush" in a recent Wall Street Journal editorial.
Who is leaving our state? Those with higher incomes and the departure of their state income tax revenue , collectively, will have a continued profound impact on the already widening budget deficit.
The last thing Californians need is another tax hike to support legislative overspending.
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If you are looking to download high resolution photos for purposes of a press release please click here.
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paid for by Friends of Gabriella Holt
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tel: (310) 732-1240 | email us
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