Viewing blog posts written by Gino DiCaro

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Promote -- don't revoke -- economic recovery policies set for 2011

Posted by Gino DiCaro, VP, Communications on June 10, 2009

Senate Pro Tem Darrell Steinberg mentions eliminating "corporate tax breaks approved in past budget negotiations" in today's Sacramento Bee article, Senate Dems push to raid budget reserve. With that statement it can be concluded that the Net Operating Loss (NOL) carry-back and the elective Single Sales Apportionment Factor are being debated for elimination -- both will help drive California's economy (and state revenue) with high wage job growth and retention in the future.

Those "breaks" were intended to remove barriers to California’s economic growth and neutralize a portion of the more than $9 billion in tax hikes and revenue accelerations on the business community. Certainty and predictability are primary tipping points for businesses looking to grow, stay or site in a location. Revoking economic stimulus policies 6 months after they were passed sets a dangerous precedent and sends signals to high wage employers that the state can't be trusted.

The NOL and the single sales factor provisions do not apply until January of 2011 and their elimination would do nothing to infuse cash to the 2009-10 budget.

Watch how the Legislature treats and delineates these important job growth provisions in the budget debate.



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