Last week Governor Jerry Brown announced a bipartisan agreement with Assembly Democrats and Republicans in support of the California Jobs First Plan.
Brown was Tuesday’s KVML “Newsmaker of the Day”.
“The agreement reached today with the cooperation of members of both parties closes the toxic tax loophole that rewards businesses for locating jobs outside California, said Brown. “These funds will help California manufacturers buy the equipment they need and reduce the tax burden on families as well as small businesses.”
The cornerstone of the bipartisan plan is the application of the Mandatory Single Sales Factor (SSF) to all businesses in California. This change eliminates what Governor Brown has called “an outrageous and perverse tax incentive that encourages multi-state businesses to create jobs outside of the state.” Shifting to SSF will put California-based businesses at a competitive advantage and encourage out-of-state businesses to locate jobs here.
The bipartisan plan provides hundreds of millions in tax relief to businesses that purchase new manufacturing equipment by exempting start-ups in their first three years from the 4 percent state sales tax, and provides an exemption of 1 percent for all other firms on manufacturing equipment purchases.
Finally, the plan helps working families and infuses hundreds of millions into the California economy by increasing the standard deduction that individuals and couples can claim on their income tax returns. Individuals can claim an additional $1,000 and couples can claim an additional $2,000. This change will help more than 4 million working Californians.
The “Newsmaker of the Day” is heard each weekday morning on AM 1450 KVML at 6:47, 7:47 and 8:47am.
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