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Cal Tax says: "Let's encourage manufacturing in CA"
Posted by Gino DiCaro
, VP, Communications on April 30, 2017
Last week, as the Legislature heard two bills to extend and improve a California sales tax exemption on manufacturing equipment purchases, the California Taxpayers Association (Cal Tax) president wrote a great piece for the OC Register on the importance of encouraging manufacturing investment in California. Most states either don't tax the purchases in the first place or provide some level of exemption. If the state's exemption was allowed to sunset, it would create a competitive disadvantage in California's ability to attract investment for the high wage sector. Cal Tax analyzed the state's current temporary exemption and found that every $1 dollar of incentive claimed has created $23 in return investment. Cal Tax's piece below. Share it around where you can.
Let's encourage manufacturing in California
by Teresa Casazza -- President, Cal Tax
(ran in OC Register April 27, 2017)
While discussing California’s loss of manufacturing jobs, a colleague once quipped that at the rate we’re going, the only factory jobs left in this state will be at The Cheesecake Factory.
We haven’t gotten to that point yet, but it is true that the Golden State has been losing manufacturing jobs to other states and countries, in large part because of the high cost of doing business in California.
Even native California companies are moving operations to other states. The latest is Aerojet Rocketdyne, the pioneering aerospace company that is eliminating 1,100 jobs in Sacramento and creating 800 jobs in Alabama. You don’t have to be one of Aerojet’s rocket scientists to know that California needs to improve its jobs climate.
In 2013, the Legislature and governor approved an economic development plan to attract and retain high-paying manufacturing and research-and-development jobs. This legislation has been good for our economy, and has the potential to be great with a few adjustments — tweaks included in twin bills, Assembly Bill 600 and Senate Bill 600, by Assemblyman Jim Cooper and Sen. Cathleen Galgiani, respectively... READ MORE ON OC REGISTER
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