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Reactions to May Revise

In the Santa Clarita Valley Signal Assemblyman Cameron Smyth is quoted as saying that he continues to oppose the Governor’s tax increase proposals, and:

“The governor certainly wants to find Republican votes, but he’s going to have to do more than what’s come out of the May revisions,” Smyth said. “Enterprise zones should be left alone.”

The Sacramento Bee has a whole collection of reactions here, including:

Marty Dakessian, counsel for Communities to Save Enterprise Zones:

“While we continue to analyze the details of the Governor’s May revision, our initial perspective is that the Governor’s proposal with respect to Enterprise Zones is not much better than the Governor’s January proposal to retroactively repeal the tax credits.In fact, the Governor’s new proposal amounts to an illegal billion dollar tax increase on businesses. It would effectively eliminate the program’s benefits, eviscerate its value and burden businesses by replacing it with another hoop-laden program that does nothing to benefit the budget, the economy, workers, businesses or the communities they live in.”The Governor’s new proposal is a continued attack on small business because it takes away promised benefits and penalizes employers for creating jobs in the state. It fails to recognize job retention as an important factor in our economic recovery, reduces tax credits for new jobs thereby reducing incentives for new hires, creates conflicting bureaucratic hoops that would make it difficult for business owners to collect on tax credits. Finally, because it limits carryforwards and violates the contracts clause, it is still clearly unconstitutional.”

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