Governor's new sales tax proposal would pinch 'Mom and Pop'
By George Runner — Monday, September 20th, 2010
Senator George Runner Serving the 17th District which incorporates portions of the Los Angeles, San Bernardino, Ventura and Kern counties. Governor Schwarzenegger is floating around an idea to tax services such as hair cuts, chiropractic adjustments, taxi rides, concerts, bowling - you name it. If it's a service, it could become subjected to taxation. The governor's reasoning is that service-oriented business owners don't pay their fair share of taxes. "... We know that the economy now is a service-oriented economy, but we really don't tax anyone that is in this new economy," the governor said in his Aug. 24 speech to the Goleta Valley Chamber of Commerce. The fact is anyone who operates a legitimate business in California is paying some of the highest taxes in the nation not to mention obeying a dizzying array of regulations, which has made California the most hostile state in which to conduct business. The reality of taxing services is that "mom and pop" business owners would feel the pinch with the addition of one more onerous expense, driving some owners to throw in the towel and close shop. Larger companies would go around the law by outsourcing to service providers in places like Nevada and Arizona, whose state leaders regularly and deliberately woo California businesses and entrepreneurs. Both of these scenarios share the same result: job loss. At a time when our state unemployment rate is hovering in the Depression-like rate of 13 percent, the idea to tax services would continue California's joblessness free fall. As for the citizenry, history shows they react negatively to excessive taxation. For proof, look no further than the Boston Tea Party of 1773, California's Proposition 13 in 1978, and in more recent times the results of California's record-breaking $14 billion tax increase laws of 2009: Californians spent less and the state's budget deficit grew bigger. Thus, if the governor's idea to tax services becomes law, watch households retreat from spending discretionary dollars on things like bowling on Saturday night and pedicures before the prom. This too will lead to further job loss. That's no way to stimulate the economy. - - - - - Women are encouraged to participate in government process The California Women's State Appointment Project 2010 is recruiting women statewide to apply for appointments to boards, commissions and agencies with the new governor who will be elected this November. California Women Lead, the National Women's Political Caucus-California, Leadership California, the California Commission on the Status of Women, HOPE (Hispanas Organized for Political Equality), and Black Women Organized for Political Action (BWOPA) comprise the coalition of organizations leading this effort to ensure the governor's administration is represented by a rich, diverse pool of women from all corners of the state. The goal is to give the next governor the names and resumes of women who are interested in serving within the new administration in order to provide a significant pool of qualified women to serve as appointees. The group will recruit women from all backgrounds and for all levels - high level, paid and volunteer. The coalition's goal is to not only increase the number of women in appointed office, but also to ensure that boards and commissions reflect the rich diversity of California. Applications are located here. If you have any questions, please do not hesitate to contact cwap@cawomenlead.org. You may also contact Rachel Michelin, Executive Director/CEO, California Women Lead at Rachel@cawomenlead.org or (916) 551-1920 with any specific questions regarding this project. |