09/10/2007
CONTACT: John Kabateck or Michelle Orrock, 916-448-9904
SACRAMENTO, Calif. -- Adding to the already bad economic news that California lost 8,600 jobs in July, the state Senate today passed a 7.5 percent payroll tax on California businesses. According to the NFIB Research Foundation, this 7.5 percent tax will cost California an additional 249,000 jobs over the next five years.
"Why is the Legislature so determined to take jobs away from California?" John Kabateck, NFIB/California executive director, said. "Small businesses simply cannot bear the burden of this tax, and will be forced to make tough decisions like laying off employees or closing their doors forever. We urge Governor Schwarzenegger veto this bill, which will reverse his efforts to bring more than 800,000 jobs to California since taking office."
NFIB has launched a Web site which allows small businesses to calculate the tax they will owe if AB 8 is implemented and tell their personal stories about how a new payroll tax would affect them. Please visit the site at www.NFIB.com/stopthehealthcaretax.
