Governor Jerry Brown announced a jobs creation plan yesterday, that he projects could bring an extra 1 billion dollars into state coffers to help reduce California’s 12 percent unemployment rate. The plan calls for increasing and making more usable a tax credit for employers, providing a tax reduction for manufacturers who buy new equipment by reducing the sales tax and finally closing what’s called the single sales factor loophole that went into effect this year.
“Because the way this particular tax break works, every time an out of state company moves a job out of California, then they get a tax break and every time they hire in California, they increase the taxes they pay.”
Business leaders from companies including Boing, Genentec, Tessla Motors and the Teamsters Union stood behind the Governor supporting this jobs creation plan. Senate President Pro Tem Daryl Steinberg challenged Republicans in the Legislature to get behind the Jobs Plan.
“Does the minority party fear Grover Norquist and the bloggers more than they care about creating jobs in California? That’s really what it is because this bill is actually so simple and logical that any opposition really defies reason.”
Senator Kevin DeLeon has crafted SB 116 to make the changes outlined by the Governor and will be presenting the bill to the legislature.