NFIB California Main Street Minute

Date: July 26, 2021

For the legislative and political week July 26-30

Welcome to the July 26-30 edition of the NFIB California Main Street Minute from your NFIB small-business advocacy team in Sacramento.

The Other Tax Credits and Exemptions

  • Last week’s Main Street Minute reported on Gov. Gavin Newsom’s signing of Assembly Bill 150 into law, singling out the new elective tax it created for pass-through entities (S corporations, LLC’s, partnerships) to use to work around the State and Local Tax (SALT) limitations placed on some small-business owners by the 2017 Tax Cuts and Jobs Act.
  • This week, we call attention to the other goodies contained in AB 150, in order as listed in the bill:
    • Extension of the state historic tax credit
    • Exemptions from sales taxes for diapers and menstrual products
    • Expansion of the Main Street Hiring Credit
    • A new Homeless Hiring Credit
    • A donated-fresh-foods tax credit
    • An increased California Competes Tax Credit.

Lower Workers’ Comp. Rates Advised

  • Last week, Insurance Commissioner Ricardo Lara announced a reduction in the benchmark rate on workers’ compensation insurance by 5¢ to $1.41 per $100 of payroll.
  • “Commissioner Lara’s decision results in an average advisory pure premium rate that is below the $1.50 average rate recommended by the Workers’ Compensation Insurance Rating Bureau of California (WCIRB) in its filing with the Department of Insurance,” said a news release issued by this office.
  • “The recommended rate reduction is based on insurance companies’ cost data. The pure premium rate is only advisory, as the State Legislature has not given the Commissioner rate setting authority over workers’ compensation rates. The newly approved average advisory pure premium rate level of $1.41 approved by the Commissioner is about 24.2 percent lower than the industry-filed average pure premium rate of $1.86 as of January 1, 2021.”

Another Great Podcast Guest

  • Last week, Kevin Pedrotti, NFIB California’s chief legislative advocate, sat down for a nice conversation with Assembly Member Suzette Martinez Valladares, which will shortly be posted on the NFIB California webpage. NFIB’s podcasts have drawn an impressive list of guests, including:
    • Dee Dee Myers, Governor Newsom’s top business advisor
    • Assembly Member James Ramos
    • Tara Lynn Gray, director of the Governor’s Office of Small Business Advocate.
  • Experts on labor law, whether there should be a tax on services, Prop. 13, and politics have also been interviewed. Click here for a full list of guests in the NFIB Podcast series, which will take you to the audio itself, or bookmark www.nfib.com/ca/podcasts.

Upcoming Dates of Importance

  • August 16. The Legislature returns from its summer break
  • September 10. Last day for any bill to be passed. Interim recess begins upon adjournment
  • October 10. Last day for the governor to sign or veto bills passed by the Legislature before Sept. 10 and in the governor’s possession on or after Sept. 10.
  • January 3. Legislature reconvenes.

In the Media

  • The Epoch Times includes NFIB’s displeasure over the $775 million to $1.2 billion cost to rebuild parts of the State Capitol, quoting California State Director John Kabateck.
  • Kabateck was also a guest on a panel discussion on labor law and COVID 19 hosted by SactownTalks, the state political industry’s growing podcast source.

Federally

  • The next NFIB webinar, “Employee Retention Credit Small Business Workshop,” will be in a couple of days, Wednesday, July 28. Register here.
  • Last week, the Senate failed to advance the bipartisan infrastructure framework, but negotiations continue.
  • On July 20, NFIB released a statement opposing Sen. Ron Wyden’s latest effort to limit the Small Business Deduction, which would hurt small business recovery, investment, and hiring.
  • On July 21, 50 Senators urged the Biden Administration not to impose a capital gains tax increase on family-owned businesses, farms, and ranches and maintain stepped-up basis.

Next Main Street Minute August 2.

Photo courtesy of the California State Senate website

 

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