Assemblyman Jim Nielsen (R-Gerber) today issued the following statement in response to Governor Brown's release of a "job creation" plan which is based on making the single sales tax factor mandatory for all businesses in California.
"The Governor is right about one thing," said Nielsen. "We do need an economic stability in this state to have businesses build confidence and invest here. And the way towards that stability is not through raising taxes."
Nielsen said that the Governor's plan, if implemented, will be raising taxes by $1.4 billion on businesses, then turn around and provide businesses with tax breaks. "If the Governor truly believes, as I do, that tax relief will lead to job creation then he should provide the tax breaks without having to raise any taxes."
He explained that although mandatory single sales factor would eliminate a disincentive from moving out of state capital and labor into California, California's overall corporate taxation rate is higher compared to other states, meaning that very few businesses will do so.
"The truth of a matter is that this so-called 'job plan' the Governor presented today does nothing to create any new jobs or to stimulate the economy. If anything it will take us a step backwards."
Nielsen criticized the Democrats for giving lip service about the importance of job creation, yet they have blocked virtually every one of the Assembly Republicans' reforms that would lead to job creation.
"Over the years, the Legislature has created an economic climate that punishes businesses and drives jobs away," said Nielsen. "What we need is real reform. To get people working again, the Legislature must take action to make our economy more competitive for jobs by passing reforms to reduce the high costs and burdens that are driving those jobs away. State agency reform is the first step toward that, and not more taxation of California hard-working families."
In order for the Governor to be able to pass this new plan presented today, he would still need the votes of four Republicans. Nielsen stated that he thinks it's even less likely to receive these votes now than it was in the beginning of the year.