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Tax burden for California businesses? In reality, not that bad

It's a common refrain whenever executives gather: California is tough on business, putting companies here at a competitive disadvantage.

It came up again this month during an economic-outlook conference at the Citizens Business Bank Arena in Ontario, where a discussion on the real estate market detoured into gripes about how high taxes and fees made California a terrible place to do business, triggering hearty applause from the audience of local business leaders.

But for all the bellyaching, at least one of the millstones on business -- taxes -- is not particularly heavy compared with other states, data show. What's more, the share of state taxes paid by corporations has been shrinking steadily over the years, shifting more of the load to individuals and smaller businesses.

Read more: "California's business tax burden no heavier than average."

-- Alana Semuels

 
Comments () | Archives (14)

But how can this be? The poisonous comments to the political stories claim that California is bleeding jobs because of the burdens imposed on businesses, that businesses are bearing an unfair burden.

Can it be true that more taxes have been shifted onto individuals and off of businesses?

Don't bother me with facts. I know what Rush says and that is the truth.

The data presented in this article seems to show that the anti-corporate climate in California has resulted in less taxable corporate activity.

Including that evil corporate practice of creating jobs.

Income tax is just one aspect of running a business in California.


What about CARB mandates on "pollution" from Corporate vehicles and equipment?

California's outrageous regulations and impenetrable, unresponsive bureaucracies are hidden taxes. Do your homework.

I'm pretty sure that the figures on the graph leave out a multitude of fees, charges, and other State-imposed costs of doing business in California.

Never mind... I see the light (link).

The author forgot about employment lawsuits for near frivolous reasons, the antiquated wage and hour laws that subject businesses to extra expense and ridiculous fines even if they agree to an employee's request to skip lunch and go home early. A counter that deviates by an inch or two from the required height triggers a lawsuit if discovered by professional plaintiffs. And of course a large award of attorneys fees accompany all of these lawsuits. Stress leave? Worker's comp awards and the high premiums? generous jury verdicts compared to other states? Now run your calculations again and you'll understand why businesses flee California. And yes those are taxes: mandated by the government with everyone along the way in tat business of harassing business paying a share. Its an indirect tax but a tax just the same.

Key statement from the blog:

>>What's more, the share of state taxes paid by corporations has been shrinking steadily over the years, shifting more of the load to individuals and smaller businesses.>>

The majority of businesses in CA are "smaller", (i.e. small business). So yes, small business does feel the tax burden.

BTW - I am a small business owner.

What terrible analysis. It's pretty obvious from the figures that corporate tax contribution has gone down due to businesses leaving the state, leaving more and more of the state's revenue to come from ever increasing taxes on everyone else.

Helllooooo is anyone home?

The reason the corporate share has gone down is because......CORPORATIONS HAVE FLED THE STATE.

Going with the dumbocrats that write such slate garbage, when the last Corporation leaves, the residence's of this state will be paying 100%.

Will you still make the same bone headed statements? ARe left wing socialist democrats that dumb to buy these kinds of outright Lies? Geessh. What pathetic people.

Then why have Intel and Cisco announced that they will not expand in California?

This story is a complete lie! Just because some big corporations escape tax hits doesn't mean that the taxes in California aren't hurting the average business, especially the small businesses that create most of the jobs. Besides, the argument is also an argument against high property taxes and sales taxes, as well as all the onerous regulations the leftist extremists in California and the Democratic Party have inserted on business. We've already lost Intel. Stop the lies, LA Times!

Isn't it quite ironic that the days when taxes in CA were higher that Jerry Brown was governor? At least he's not....uh-oh! Here we go again....elections have consequences and you just voted in a big one.


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