Governor aims to pass a tax reform measure before close of session

by Brian Leubitz

The Governor has been itching to get some sort of job plan going. Unfortunately, many of his ideas require a 2/3 vote, and Sacramento Republicans, like their counterparts in DC, seem more intent on blocking Democratic initiatives than getting anything done.

But this isn’t even a measure that is increasing taxes:

Brown last month proposed eliminating a corporate tax benefit that allows companies to pick the less-expensive of two tax formulas when calculating tax liability. He proposed using the money, about $1 billion, to fund a sales tax exemption for purchases of manufacturing equipment, and he proposed expanding an employer tax credit.

Even before Brown announced the plan, Republicans criticized it and Democrats acknowledged it was not likely to pass. The change would require a two-thirds vote in the Legislature, and Republicans blocked a similar proposal in budget talks with Brown earlier this year.

“Any time you have legislation, it’s the work of more than one hand,” Brown said at the biotech company Gen-Probe Inc. “There are some Republicans that are already on board, and there’s active discussion by those individuals with other legislators of that party. So, I’m reasonably optimistic we’re going to get something by the end of the week. It will reshape itself as it goes through the legislative process.”(SacBee)

Of course, the Republicans talk about “job creators” like somehow being rich equals creating jobs.  Corporations aren’t creating jobs, but Brown is trying to do something to spur spending.  Anything.  The elective tax structure hasn’t really shown to be a boon for anything but corporate treasuries, and creates no real incentive to create jobs in California.

Meanwhile, the Republicans moan about job creation, and then won’t do anything to create jobs. Color me shocked.