When it comes to balancing California 's budget, many of the special interest groups in Sacramento just don't get it. Despite decades of ever-expanding state spending, they still demand more tax dollars and are battling ferociously against any attempts to bring spending under control. Rather than reducing state spending, they're attempting to balance the budget by piling more taxes on the backs of hard-working Californians. These special interest groups feel tax hikes are the best way to solve the state's financial woes - but this couldn't be any further from the truth.
Facts can be stubborn things. Take for example when taxes were increased in 1991 to paper over a similar budget crisis. Some thought higher taxes would cause state revenues to increase, but, to their surprise, overall state revenues actually declined the following two years.
The reason is simple: taxes take money out of the pockets of California families and stifle job creation – two things that must avoided, especially during an economic crisis like the one our state is currently facing.
What the special interest groups don't understand is that the real solution to California's financial problems is true economic recovery and spending discipline. The Legislature must do everything in its power to unleash the entrepreneurial spirit that allows companies to do what they do better than any government program ever will: create jobs and provide opportunities for the two million Californians who are currently unemployed.
Some of my colleagues and I were successful during budget negotiations earlier this year when we passed a measure to give small businesses tax breaks for hiring new employees. This measure encourages companies to do business in California because they receive $3,000 for every new full-time employee that they hire. And since small businesses make up 99% of employers in California, this measure will undoubtedly help stimulate our economy and provide new opportunities for unemployed workers.
Another successful business incentive that we passed back in February was known as the ‘single sales factor.' This measure will spark economic recovery because it gives corporations the option of being based on their sales - rather than requiring them to pay taxes based off of their sales, payroll, and property. By providing tax flexibility, these corporations have an incentive to do business in California and hire more Californians.
During upcoming budget negotiations, I will continue to fight for measures like these that help revive our economy, not restrict it – because that's how we put Californians back to work and generate more revenue for the state. We must create a business friendly environment in California so that companies aren't forced to move to states with smaller tax burdens (taking their jobs and revenue with them). The only jobs these special interest groups are creating are in Nevada and New Mexico by making it too difficult and expensive to operate here in California.
The big spenders in Sacramento still want to believe that taxes are the solution to all of our problems – I think they are wrong. As your Assembly member, I will do everything in my power to keep their hands out of your wallet. If the Legislature is truly interested in generating more revenue, we must promote real economic recovery, create jobs, and not allow any new taxes or tax increases.
