Sacramento Democrats: Why not drive away more companies?

Sony has announced it is moving a major subsidiary to Canada. Toyota is going to Dallas, as is Occidental Petroleum and numerous other firms. Tech companies are moving to Austin. In fact in the last ten years one third of all jobs created in the United States were created in Texas. On the other hand California taxes, environmental, water and energy policies make sure companies leave the State. We have the CEO of CKE (Carls’ Jr.) saying he can no longer build in California. At one point he said it took two and a half years to get a permit to build in California yet in Texas 6-8 weeks.

Now the Democrats are trying to move another California job killer. The higher the CEO pay the higher the corporate tax. That would be enough to create a stampede to Texas. Do they smoke loco weed in Sacramento?

A bill sponsored by Sen. Mark DeSaulnier, D-Concord, and Loni Hancock, D-Berkeley, would set a sliding scale for corporate taxes, cutting them for publicly traded companies whose CEOs earn less than 100 times the median compensation of their workers, and raising them when CEOs make more.

California currently has a corporate flat tax rate of 8.84 percent, except for financial institutions, which pay 2 percentage points more.”

Could the extra 2% be why Union Bank is leaving the State and Bank of America left a few years ago?

taxes

Why not drive away more companies?
By John Seiler, Calwatchdog, 6/1/14

Taking a tactic from the envy playbook , Democrats in the California Senate want to grab even more from successful businesses. Which would drive away even more companies. The Register reported:

A bill sponsored by Sen. Mark DeSaulnier, D-Concord, and Loni Hancock, D-Berkeley, would set a sliding scale for corporate taxes, cutting them for publicly traded companies whose CEOs earn less than 100 times the median compensation of their workers, and raising them when CEOs make more.

California currently has a corporate flat tax rate of 8.84 percent, except for financial institutions, which pay 2 percentage points more.

California is the first state to consider tying taxes to CEO pay, according to Damon Silvers, policy director of the AFL-CIO labor federation, which tracks the issue for its Executive Paywatch initiative.

The California bill, SB1372, surprised some observers by passing the Senate Appropriations Committee by a 5-2 vote Friday, with Democrats supporting it and Republicans opposing.

The money, of course, would flow to the government, of which the five state senators are leaders. And which the AFL-CIO helps control through its public-employee members; and through financing political campaigns.

If these politicians really wanted to help the middle class and the poor, for starters they would slash the top 9.3 percent income tax rate that starts at about $55,000 of income. (The Prop. 30 tax increase will expire in five years.) That’s right, in California, you’re considered “rich” at $55K of income — even though the state’s so expensive that’s really lower-middle-class!

Next, they would repeal AB 32, which destroys jobs to fight “global warming” that isn’t happening.

Then they would repeal the California Coastal Commission, a Soviet-style agency that severely limits developing land, which drives home and apartment prices sky-high, so only the 1 percent can live here.

None of that will happen, of course.

 

About Stephen Frank

Stephen Frank is the publisher and editor of California Political News and Views. He speaks all over California and appears as a guest on several radio shows each week. He has also served as a guest host on radio talk shows. He is a fulltime political consultant.