Small business has been watching the budget debate for the past 70 plus days – just like everyone else. The big difference is that time and time again, they are the ones in the cross hairs of our legislative leaders.
Some were surprised that Cal-Tax supported the Governor’s current budget plan, including a tax increase. The reality is that the majority of Cal-Tax members are larger corporations that can easily absorb the cost of any new tax. It is disappointing that they chose to support an onerous new cost to California’s largest job creator, small and independent business.
The small businesses that the National Federation of Independent Business represents don’t adjust as easily to new taxes. They face consequences that the big guys don’t – laying off workers, cutting benefits, increasing prices or closing their doors forever. But beyond that, time and time again when polled, NFIB members stand firm in their chorus of no more taxes. California is one of the worst places to do business in the country – why would our state leaders want to add to an already heavy tax burden?
A few of our state leaders are on the right track by calling for important elements of comprehensive budget reform: a rainy day fund that serves as a reserve during good times and can be drawn upon during more difficult periods, a spending cap that creates much-needed thresholds to ensure expenses do not exceed revenues, and increased public-private partnerships to ensure government works more like a business than a bureaucracy.
Make no mistake – NFIB does not support a tax increase to balance the state budget. What message does it send to California’s entrepreneurs that every time the Legislature spends itself into debt, taxes are increased to make up the difference? It is time find a budget solution that is not balanced on the backs of hardworking Californians.