Gov. Brown signs business incentive bill

July 12, 2013

Jerry BrownGov. Jerry Brown signed legislation on Thursday revamping an economic program in an effort to encourage manufacturing and job growth in California. [MercuryNews]

Brown initially objected to continuing the business incentives calling the program outdated and inefficient but later compromise after businesses pushed back.

The bills, AB93 and SB90, will extend a sales tax exemption for manufacturing and research-and-development equipment for eight year, provide hiring credits for businesses in areas with high unemployment rates, and provide tax credits to encourage businesses to expand and retain jobs in California.

Brown said some businesses abused the incentive program by providing unneeded tax breaks to businesses that pay low wages.

“The enterprise zone program represented some of the worst abuses of taxpayer money this state has seen,” California Labor Federation Executive Secretary-Treasurer Art Pulaski said Thursday in a prepared statement. “Instead of using taxpayer funds to create jobs, the broken enterprise zone program subsidized strip clubs, card rooms and big corporations like Walmart.”

The revamped program specifically excludes strip clubs from receiving hiring tax credits and also allows hiring credits for businesses that employ welfare-to-work participants.

 


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6 Comments

  1. Niles Q says:

    I’d bet people at a strip club make really good money. So if no strip tease dancers are covered, does that apply equally to modern dance and ballet troupes? Seems only fair.

    (0) 2 Total Votes - 1 up - 1 down
  2. DennySLO says:

    Typical Government, keep doing the things that don’t work or are found to be abused by the recipients of benefits and dump the programs that are fiscally sound and produce economic benefits.
    Question; when was the last piece of legislation introduced that addressed ways the Government could actually cut spending, reduce waste and balance a budget?……….keep on feeding the monster is what we get.

    (11) 11 Total Votes - 11 up - 0 down
    • r0y says:

      Yep. It was once said that the more plans fail, the more the planners plan.

      …a government bureau is the nearest thing to eternal life we’ll ever see on this earth!

      (4) 4 Total Votes - 4 up - 0 down
  3. r0y says:

    Revamping a failed program! YAY! California is so pro at getting businesses to come!

    Here’s a recent CNBC graphic that lists the best states for business… at least CA isn’t #50 at all things…
    Business Friendly States (png graphic).

    (7) 7 Total Votes - 7 up - 0 down
  4. Rambunctious says:

    Hey…strip clubs have employees. I’ve seen them. lol

    (15) 15 Total Votes - 15 up - 0 down
    • Russ J says:

      They manufacture some good times too. And what about all the plastic surgery business that’s generated?

      (8) 8 Total Votes - 8 up - 0 down

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