08/29/2008
CONTACT: Michelle Orrock, 916-448-9904
SACRAMENTO, Calif. -- John Kabateck, executive director for the National Federation of Independent Business/California, released the following statement regarding the Senate vote of the latest budget proposal:
"Yet again, our state leaders are demonstrating that they are not concerned about the impact of increased taxes on the residents and economy of California. Now is not the time for additional taxes: Now is the time to bite the bullet and cut spending. Californians cannot continue to bear the burden of the poor spending habits of our state leaders.
"Moreover, the complete and utter lack of any economic reform designed to stimulate small business growth and investment, shows that our state leaders could not pass Economics 101 if their lives depended on it. As any economist worth their salt knows, small businesses create jobs in our economy and failing to stimulate those businesses fails the test and fails our state.
"Particularly at a time when the economy is down and struggling to regain its footing, an increase in the sales tax will force consumers to scale back purchases, and this will affect small businesses that depend on that revenue to keep their doors open. Small businesses will once again have to make tough decisions about hiring, benefits and whether to even stay in business because our government leaders have chosen to burden them with yet another new and unexpected cost.
"We urge the Senate to carefully consider the long term impact that an increase in taxes will have on the residents of California, and to make the decision to cut wasteful government spending and bring spending in line with revenues."
