SACRAMENTO – Despite insisting he isn’t raising taxes, Governor Newsom’s revisited budget does just that.
As Dan Walters wrote in CalMatters this morning, a breakdown of Newsom’s budget reveals multiple tax increases that will make doing business in California even harder.
“Whether he’s cooking the books to make the budget deficit look smaller or insisting he’s not raising taxes while sneaking backdoor tax hikes into the fine print, Newsom just can’t be straight with Californians,” said Assembly Republican Leader James Gallagher. “Newsom’s mismanaged budget is going to close businesses, kill jobs and continue to damage out economy.”
Newsom’s tax hike plans include:
- Cutting the net operating loss deduction, increasing taxes by nearly $16 billion.
- Overturning a decision on how foreign earnings are taxed, netting the government an extra $1.3 billion.
- Adding new costs for California energy producers (because gas isn’t expensive enough, apparently.”)
- Forcing companies to pay taxes on bad debts they’re owed.
- A higher fee on household cleaners and farm supplies.
And don’t forget the higher payroll taxes to pay down the state’s massive unemployment insurance debt.
Combine all those and what do you get? California hanging onto the highest unemployment rate in the country for the foreseeable future.
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