Brace for CA's next mass corporation exit, amid tax increase proposal

After over-regulating many major corporations out of the Golden State, pols including Sen. Nancy Skinner (D-Berkeley) plan to over-tax any left behind, “to protect California progress.” Katy Grimes of the CA Globe discusses why Skinner's proffered tax increase, though seemingly beneficial to the everyday person, will overall hurt workers and consumers the most.

Raising taxes on California businesses is not “responsible,” as businesses are the employers, and already pay a colossal amount of taxes in California. The Cal Chamber calculated Democrats proposal to raise taxes on California businesses will be by “$6 billion with an unprecedented 24% increase in the corporate tax rate.”

Sen. Nancy Skinner (D-Berkeley), “on Wednesday called for a tax increase on major corporations, such as Coca Cola and Walmart, in order to fund middle- and lower-income tax cuts as well as critical infrastructure projects in the 2023-24 budget,” the Sacramento Bee reported.

Evil Coca Cola and Walmart.

Let’s look at some of the larger businesses in California which will be hit with Sen. Skinner’s “responsible budget plan.” These are the employers. When Democrats raise taxes again on the employers, costs will go up, lower wages will be frozen or go down, and/or these employers will have to cut back and employees will be out looking for other work....

When California’s Democrat politicians push tax increases on these businesses, the results actually reduce wages for lower-skilled, young and female workers, according to the Tax Foundation. “The economic evidence suggests that in the long run, workers and consumers, rather than shareholders, bear a sizable share of the corporate tax burden.”

This article originally appeared in the California Globe. Read the whole thing here.

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Image by Tomi Knuutila