☆ Local business leaders puzzled, disappointed by Chamber's endorsement of tax-increasing Prop 5
Businesspeople from a wide range of categories were disconcerted to find that the SJ Chamber of Commerce had endorsed Proposition 5, which would make it easier for gov't to raise taxes on local merchants. Concerns, disappointments, and lived experiences voiced below. An Opp Now exclusive.
Asset protection services.
Dan L. Connolly, president, ACSATM, Inc.
I am disappointed in the leadership of the San Jose Chamber of Commerce and their support of Proposition #5. As a business, I stopped supporting The Chamber years ago, as I disagreed with their direction.
Today, it appears they have become even less friendly to the small business community, as the organization leans further to the left in support of higher taxes.
Consider this:
Ten of the top 25 most expensive places to live in the United States are here, in California. San Francisco is #12, and San Jose places #16, respectively, on that list.
California also has the distinction of having the highest individual income tax rates, topping out at 13.30%.
This state has made it more difficult and expensive to live here. A great part of the problem is the extensive regulations on businesses and administrative fees (another form of taxes). And state and local gov'ts are always trying to push even more new tax initiatives.
Requiring a 2/3rds vote to raise taxes—which would indicate a broad consensus—is reasonable, especially given that our children and grandchildren—many of whom are too young to vote today—will be paying the lion's share of these long-term bonds.
Proposition 5 will raise our property taxes, and, in my opinion, will eventually erode the property tax protections provided by Proposition 13. Many families simply can no longer afford to live here. Isn't it time to put a stop to fiscally irresponsible government, and our “tax and spend” bureaucrats?
Local restaurateur.
June Tran, owner, Crema Coffee and Pier 402 restaurant
I run a collection of cafes and restaurants in San Jose, and I'm frankly puzzled that the Chamber of Commerce, which is supposed to advocate for small businesses like mine, would choose to endorse Prop 5, which would raise taxes and make it harder for me to run a profitable business and employ my hardworking employees.
Here's why: I have to lease properties from commercial real-estate providers. Prop 5 will make it much easier for cities and counties to raise taxes on those providers, and so they will be forced to pass these new costs onto me. So I will end up either losing money, laying people off, or raising prices.
A Chamber of Commerce should be fighting for small business, not fighting against us. By supporting Prop 5, they indicate to me they don't understand the economics of running a small business in San Jose and don't understand the consequences of their endorsements.
Local housing provider.
Jenny Zhao, past president and current board member, Bay Area Housing Network
Smaller housing providers—often referred to as "mom and pop" providers, create and manage 70% of San Jose's naturally affordable housing (the data's all there in the Rent Registry). But our business viability is constantly under attack from local government as it demands new regulations, new fees, new taxes, new mandates—while not allowing us to raise rents.
The result? Many of these smaller providers are just quitting the business altogether, selling off properties, and thereby further diminishing the supply of local affordable housing.
So it should be no surprise that we are united against Prop 5. And are astonished that an organization like the San Jose Chamber of Commerce—which is ostensibly there to advocate for business—would endorse such an obviously anti-business proposition. Local government's current methods for addressing affordable housing and homelessness are clearly not working. We need more supply, less regulation, and fewer taxes. Prop 5 just doubles down on our current flawed model, and the San Jose Chamber is deeply misguided in supporting it.
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