Tax increases costing vital local jobs

Four months ago, Californians were hit with the biggest tax increase in our state's history – more than $12 billion in new taxes on everything from income and sales to vehicle license fees. Since then, tax proponents have proposed another 31 new taxes that they predict will generate more than $40 billion in the first year. On top of that, legislators have singled out oil and tobacco products for massive new tax hikes.

It's time tax proponents in the Legislature heard from California's retailers. In this economy, many retailers have folded, and others are fast approaching their breaking point. Asking retailers to absorb the impact of more tax increases is a perilous proposition. New taxes have the clear potential to drive down retail sales, further eliminate retail jobs and heighten our state's budget crisis.

“I have been forced to lay off 37 percent of my work force, including an employee who has been with me since 1981,” said Amir Oram, of the Market Place in City Heights. “No doubt about it, the economy is bad, but tax increases and the added cost of doing business are what worry me. Business as usual tax increases could very well put us out of business."

The answer to this state's budget woes must be found elsewhere – in systemic changes that reduce expenses and eliminate waste, inefficiency and fraud.

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