While the legislature is in session, the National Federation of Independent Business/California will be profiling anti-small business bills and the adverse effect they would have on California’s job creators. This is the fifth column of that series.
In a less than a week, California voters will go to the polls once again. This time, they are being asked to consider several propositions that were put on the ballot as part of the budget deal that was struck earlier this year. Late last month, NFIB/CA formally opposed Proposition 1A after balloting our more than 21,000 members. Once again, the voice of small business was loud and clear – no more new taxes!
There is no doubt that the state is facing unprecedented troubling times. That is why it is especially concerning that the budget deal included new and unanticipated costs that struggling small businesses simply can’t afford to absorb, including an increase in income taxes, sales taxes and a near doubling of the car tax. During tough economic times such as these, heaping new costs upon California’s leading job creators should not be even a remote option when trying to balance the state’s budget.
Small business owners are right to demand that the state spend less than it takes in – after all, that is how they keep their doors open. And even though these taxes may be characterized as temporary, chances are they will continue long past their expiration date. And who is to say that our state leaders and bureaucrats, salivating at the prospect of new money in the bank, will not opt to raise those taxes again?
Small business owners know that when times get tough, when you bring in less income than you planned for – you must tighten your belt and make cuts to keep the lights on – or face the grim prospect of total shutdown. While proponents of Proposition 1A are right to extol the virtues of reforms that would limit government spending growth, restore fiscal accountability and provide a rainy day fund, the sad truth is that the short term pain – $16 billion in new and extended costs to businesses, their employees and California taxpayers – eclipses any potential long term gain.
After next Tuesday’s election our legislators will have a clear picture from voters in terms of the next steps they must take to solve California’s budget crisis. The time is now for our state leaders to step up and make the hard decisions to bring spending into line with revenues until the state’s budget is balanced.