You would think that the last thing the California Legislature would want to do is add yet one more burdensome layer of taxes on small businesses – especially at a time when we ought to pass measures to stimulate the economy. But that’s not the mindset of the Democrat leaders in the Legislature.
Instead, the cornerstone of their current Budget Proposal is a 3 percent withholding tax on Independent Contractors.
This illogical proposal would slow economic recovery and growth in California, and has the potential to put more people out of work. As it is, the state is already approaching a 12% unemployment rate.
Furthermore, this measure could actually force small business owners to shut their doors, or at the very least stretch other small businesses to the limit, as they will be compelled to provide an up-front loan to the state even if they have no tax liability.
When are the Democrats going to learn that small business is the fuel that drives California’s economy?