SAN FRANCISCO, Jul
23, 2008 (BUSINESS
WIRE) -- Prestigious
business
organizations
throughout
California are
urging Sacramento
legislators and
Governor Arnold
Schwarzenegger to
grant an exemption
for small businesses
in a proposed tax
measure suspending
net operating losses
for three years.
The controversial
tax measure -- one
provision in a state
budget plan calling
for $8.2 billion in
new taxes -- is
designed to close a
loophole for large
corporations and
generate $1.1
billion for the
state. But small
businesses earning
less than $5 million
in revenue may
suffer the most
negative effects.
"Although 80 percent
of the total taxes
would come from
businesses with more
that $5 million in
revenues, more than
six small businesses
would be impacted
for every large
one," according to
Scott Hauge, founder
and president of
Small Business
California, a
business advocacy
organization, and
president of CAL
Insurance &
Associates in San
Francisco.
"California's
economy is driven by
3.2 million small
businesses that
struggle to endure
economic downturns,
while investing in
future growth and
creating most of the
new jobs at
considerable
personal and
financial risk,"
Hauge adds. "The
issue is not just a
'small business'
issue. It's really
about the state's
overall economy."
Companies in
California are
permitted to carry
forward net
operating losses
incurred in one year
and use them as
deductions against
earnings in future
years. The proposed
budget would suspend
the losses for three
years. If a business
operates at a loss
-- often the case
with start-ups or
businesses that add
employees, expand
inventory or upgrade
equipment -- it
could not carry over
that loss in
subsequent years to
mitigate the tax
burden.
The list of 29
organizations
signing a letter to
state legislators
requesting the
exemption includes
key chambers of
commerce, local
merchant groups, and
statewide
manufacturing and
building
associations:
Asian Business Association of Orange County
Associated Builders and Contractors of California
Building Owners and Managers Association of San Francisco
California Association of Competitive Telecommunications
Companies (CALTEL)
California Association for Micro Enterprise Opportunity (CAMEO)
California Chapter of the American Contractors' Association
California Employers Association
California Fence Contractors' Association
California Metals Association
Engineering Contractors' Association
Flasher/Barricade Association
Golden Gate Restaurant Association
Los Angeles National Association of Women Business Owners
Marin Builders' Association
Napa Chamber of Commerce
National Association of the Remodeling Industry San Francisco Bay
Area
Oakland Metropolitan Chamber of Commerce
Plumbing Heating and Cooling Contractors of California
San Diego Chamber of Commerce
San Francisco Chamber of Commerce
San Francisco Council of District Merchants Associations
San Francisco Hispanic Chamber of Commerce
San Francisco Marina Merchants Association
San Francisco National Association of Women Business Owners
San Francisco Small Business Advocates
San Francisco Small Business Network
Small Business California
Small Business Majority
Small Manufacturers Association of California
SOURCE: Small
Business California
PVB Public Relations
Paul von Beroldingen, 415-751-1858 (Off)
Cell: 415-264-8524
paul@pvbpr.com
or
Small Business California
Scott Hauge, President, 415-680-2109 (Off)
Cell: 415-699-9100
shauge@cal-insure.com
Copyright Business Wire
2008
