California 'jobs program' can't cover the cost of California taxes
California Governor Jerry Brown has been lauded by the left as one of the most successful and influential leaders in the country. Supported by a Democratic supermajority in both houses of the California Legislature, the governor can basically do as he pleases, but he can’t seem to bring back the jobs that he’s chased away.If they want to grow jobs they could follow the Texas model by lowering taxes and regulations, but California liberals can't give up their control freak tendencies. California really is not co0mpetitive when it comes to taxes and regulations and it does not seem to really care.
Four years ago, Brown launched “California Competes,” his program to boost California jobs by awarding tax credits to job-creating businesses. Today, two-thirds of those credits have been left unclaimed.
To make matters worse, no one can vouch for the jobs that the program has produced because, conveniently enough, the state offices responsible for awarding and tracking the credits aren’t keeping count.
Brown’s administration is crossing its fingers that businesses are simply waiting until the last minute to claim their credit, but that’s probably wishful thinking. The nonpartisan Legislative Analyst’s Office even said it “anticipated somewhat larger amounts” of claimed credits, which is not a good sign.
The private sector isn’t too hopeful either.
Micah Weinberg, president of the Bay Area Council Economic Institute, believes the claim rate won’t improve anytime soon, and small businesses are arguing the credits are not worth the cost.
Matt Pentecost, owner of Sac Surface Pro in Sacramento, says his $6,000 a year approved credit isn’t enough of an incentive to pay for the salary, workers’ compensation, and employment taxes of more workers. Businesses are also struggling to find employees with the skill set they need, regardless of the tax credit — a key gap that academia doesn’t have much interest in filling.
California’s hostile business environment has caused a mass exodus of companies from the state, and small businesses are the most likely to leave. Smaller businesses are disproportionately affected by California’s taxes and regulations, and yet they employ around 50 percent of the state’s private workforce.