SACRAMENTO – Noting that the state’s economic recovery has been a slow and uneven one, Senator Mike Morrell (R-Rancho Cucamonga) announced that he has authored legislation to increase the confidence of small businesses as they decide to either locate or invest in California.
“California should have everything going for it. With our diverse geography, desirable climate, and world-class colleges and universities, our state holds incredible promise,” said Morrell. “Yet the unfortunate reality is that the state continues to have a reputation for high taxes and burdensome regulations. Doing business in California is cost prohibitive, which slows our economy and prevents careers from getting off the ground. Our state needs to reverse this trend, assuring small businesses that if they open their doors here, they will have every opportunity to maximize their potential and create jobs.”
SB 248 would provide a startup incentive to new small businesses by cutting the minimum franchise tax in half from $800 to $400 for the five years of operation following the first taxable year.
SB 555 would hold state agencies to greater accountability for decisions impacting jobs and the economy by requiring an automatic review of regulations five years after their adoption and implementation.
Facts about California’s burdensome regulatory environment and high tax rates:
- For 12 years in a row, 500 CEOs surveyed by Chief Executive Magazine have ranked the state last in business-friendliness.
- An estimated 9,000 businesses have left California or decided against expanding operations here since 2008.
- Research by the National Federation of Independent Business finds that half of small business owners say regulations are a serious problem.
- The rate of new business creation nationwide dropped more than 30 percent during the economic downturn and has been slow to come back.
SB 555 is scheduled to be considered by the Senate Governmental Organization Committee on March 28.
SB 248 is scheduled to be considered by the Senate Governance and Finance Committee in May.