The following was posted by CalTax:
Governor Brown scuttled his original plan to repeal enterprise zone tax credits because of bipartisan opposition. But he now offers a new proposal that is just as bad as the original.
The new proposal still would impose a retroactive tax increase on thousands of California businesses. Many of these businesses have survived thanks in large part to the enterprise zone program, and have kept their employees working during the economic recession.
The owner of a small printing firm in San Diego said: “Thanks to enterprise zone tax credits, we were able to retain employees that we otherwise would have been forced to lay off during the latest recession. This new proposal puts my company and my employees at even greater risk.”
The governor’s limitations on tax credit carryovers would be particularly harmful to startup companies – especially in the high-tech and bio-tech sectors – that would be unable to utilize the enterprise zone tax credits.
Small businesses already are burdened by California’s high taxes and fees, and the governor’s new enterprise zone plan would increase fees even more.
The state should be focusing on increasing employment opportunities to help the more than 2.1 million Californians who are out of work, but the governor’s plan would simply make it harder for employers to keep their doors open in this state.