New taxes bad for business

Wednesday, January 9, 2013
 | 
Becky Yeh - California correspondent (OneNewsNow.com)

A California Republican leader warns that a triple tax on wealthy citizens in The Golden State will lead businesses to flee, causing the deficit to increase.

Wealthy Californians will see a triple tax increase this year. The San Diego Union-Tribune notes that the "fiscal cliff" deal, ObamaCare, and the Proposition 30 tax hike passed by voters in November will take away an even greater portion of funds from the state's top earners.

Vafiades, Mark (GOP of Los Angeles County)Analysts say the high tax rates and increased regulations make California a hostile place for businesses. Mark Vafiades, chair of the Republican Party of Los Angeles County, agrees.

"With all the burdens that have been put on businesses in the form of taxes [and] in the form of the healthcare mandate, businesses are going to be flying out of California," he predicts.

The result, he explains, will be an increased unemployment rate.

"Which means revenues to the state from people who are working [and] paying taxes are going to go down, and it's going to put California in a worse state of affairs. We're going to have a larger deficit, and constitutionally, we're a state -- we can't do that; we can't have a deficit."

By approving Governor Jerry Brown's (D) Prop. 30, state voters agreed to raise the state sales and income taxes. According to The Tribune, this means that those who make at least $300,000 a year will pay roughly $500 more.

Meanwhile, analysts predict Democrats in Sacramento will raise taxes even higher than voters approved.

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