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Governor Announces Bipartisan Agreement on the California Jobs First Plan

Here is the press release from the Governor’s office on the new bi-partisan deal announced today. The following are the bullet points summarizing the proposal:

Applies the Mandatory Single Sales Factor (SSF) to all businesses in California.

Reduces the tax rate by a half percent for the first $50,000 in taxable income for most corporations (from 8.84 percent to 8.34 percent). Estimated tax relief: $18 million.

Offers a 10 percent exemption for the first $50,000 in business income for Personal Income Tax taxpayers. Estimated tax relief: $255 million.

Cuts the minimum tax from $800 to $750—a 12.5 percent reduction. Estimated tax relief: $59 million.

Increases the standard deduction of $1,000 for individuals and $2,000 for couples. Estimated tax relief: $306 million.

Enacts a sales tax exemption on manufacturing—approximately 4 percent reduction for start ups and 1 percent reduction for established businesses. Estimated tax relief: $299 million.

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