TO THE.
WHAT DATE ARE WE AT THE
SIXTEENTH EDITION OF THE
GOVERNOR FIVE YEAH COMMITTEE
MEETING THANK YOU SO MUCH FOR
JOINING US TODAY?
WOULD LIKE TO TAKE CARE OF SOME
HOUSEKEEPING AND ALSO GO THROUGH
ABOUT WHAT OUR AGENDA WILL LOOK
LIKE AS WE WILL HAVE TO SETS.
OF HEARINGS TODAY I'M I DIDN'T
WERE IN OUR EARLY MORNINGS
GENE WHICH IS ITEMS ONE THROUGH
FOUR.
IT WE'RE GOING TO HAVE TO BILLS
THAT WILL BE PRESENTATION ONLY
THAT WILL BE S. B. NINE NINE
FIVE IN S. B. NINE NINE SIX.
IT WILL BE NOT BE A VOTE TAKEN
ON AYE OF THOSE BILLS TODAY.
BUT WE WILL THEN HEAR S. B.
TWELVE THIRTY SEVEN AND THEN
FOURTEEN EIGHTY FIVE.
WE HAVE A SPECIAL ORDER HEARING
AT ELEVEN A. M. ON SALES AND USE
TAXES.
FOCUS ON A POTENTIAL SERVICE
TAX HERE IN THE STATE OF
CALIFORNIA.
AND THAT WILL BE AT ELEVEN A.
M. MEAN EVEN IF WE FINISH OUR
EARLIER MORNING SESSION FIRST WE
WILL HAVE A TEMPORARY RECESS
HIGH IN START ST UP AT ELEVEN.
WE CURRENTLY HAVE ENOUGH.
MEMBERS HERE IN THANK YOU SO
MUCH TO BE ABLE TO ESTABLISH A
QUORUM. MISLAID CHESSER LET'S DO
THAT ROLL CALL VOTE PLEASE.
LOCAL POLICE IF HERE WIRE PRESS
IT WIN. BELL. BELL PRESENT
HERTZBERG LARA.
NO LUCK.
PRESIDENT.
MORE LIKE PRESIDENT I DIDN'T DO
HERNANDEZ HERNANDEZ HERE AND AND
THAT'S PRESIDENT.
WE DO HAVE A QUORUM AYE IN WHICH
ARE.
EXCITING AS WE HAVE A QUORUM
WITH NO AUTHORS EYES OF THIS IS
REALLY GREAT.
AND SO I AS YOU ALL KNOW HOW WE.
HERE WE GO.
THAT WE HAVE AYE SINNER GAIN TO
AS TO WHAT I BELIEVE HE'S IN
JAIL LACK.
IT.
IT WE ARE TRACKING DOWN SENATOR
BATES IN SENATOR MORALE.
GIVE US A COUPLE OF MINUTES THAT
WE ARE ON THE HUNT BY TO BE ABLE
TO FIND THEM AND BRING THEM IN.
I WILL BE RIGHT BACK WITH YOU
THANK YOU SO MUCH FOR YOUR
PATIENCE
COMING OUT OF OUR VERY SHORT
RECESS WE'RE GONNA WELCOME.
I SAVOR AL HERE TO BE OUT OF
PRISON SENATE BILL FOURTEEN
EIGHTY FIVE ON PERSONAL INCOME
TAX CREDITS AND FOCUS ON
CHARITABLE CONTRIBUTIONS.
SEN WERE ALL THE FLOOR IS YOURS
AND WE WELCOME YOU TO COMMITTEE
SIR PAID ON.
DOING WELL THANK YOU FOR ASKING.
THE FLOORS ARE SIR.
VOTERS WHAT IS MINE.
THANK YOU.
FROM.
MISTER CHAIR AND MEMBERS THE
UNIVERSAL CHARITABLE CREDIT
FASHION BY. OUR AFTER I SHOULD
SAY. PALM.
ARIZONA'S CHARITABLE CREDIT
ALLOWS TAXPAYERS TO DIRECT THEIR
MONEY.
A PORTION OF THEIR MONEY IN
THEIR TAX DOLLARS TO NONPROFIT
ORGANIZATIONS ARE CHARITIES.
THAT PROVIDE. SERVICES TO THE
PUBLIC.
COM.
FOURTEEN EIGHTY FIVE PROVIDES A
TAX CREDIT FOR VOLUNTARY CASH
CONTRIBUTIONS MADE TO CHARITIES
WITH AND CALIFORNIA.
THEY'RE ARE FIVE OH ONE C.
THREES.
WHICH ARE LISTED IN GOOD
STANDING. WITH THE FRANCHISE TAX
BOARD AS WELL AS THE SECRETARY
OF STATE.
IN ALL THEIR OFFICES.
INDIVIDUALS WILL BE ABLE TO
CLAIM DEDUCTIONS ARE DONATIONS
I'M SORRY UP TO FIVE HUNDRED
DOLLARS TO MARRIED COUPLES
FILING JOINTLY.
WILL CLAIM UP TO A THOUSAND
DOLLARS. A CALIFORNIA'S WE KNOW
HAS SOME OF THE HIGHEST THAT TAX
RATES AND SHOULDERS THIRTY FOUR
PERCENT OF THE. NATION'S WHAT.
WELFARE CASELOADS SECURITIES IN
CALIFORNIA SERVE MANY OF THE
NEEDS.
AT AS WE KNOW SOME OF THE TOP
CHARITIES IN AMERICA.
SUCH AS A RED CROSS WORLD
VISION.
FOR EVERY DOLLAR DONATED TO
THEM.
THEY GET NINETY CENTS IN THE
HANDS OF THE PEOPLE THEY WANT TO
HELP SO. THEY'RE VERY EFFICIENT
AND EFFECTIVE WITH THE.
MONEY THAT HAS DONATED TO A.
AND AGAIN.
.
WE SEEM TO GET MORE BANG FOR OUR
BUCK OUT OF THESE CHARITY
SOMETIMES AND WE THEN WE DO
GOVERNMENT. ALL ACROSS AMERICA.
SO ANYWAY THESE CHARITIES
CALIFORNIA'S YOU KNOW SERVE MANY.
NEEDS AND GREAT NEEDS THAT OPT
AND GOVERNMENT CANNOT AND SO
THEY BRIDGE THAT GAP. ARM OF
GOVERNMENT.
BETWEEN GOVERNMENT PRIVATE SO
S. B. FOURTEEN EIGHTY FIVE WILL.
INCENTIVIZE GIVING THESE.
THIS MONEY TO WORTHY CAUSES AND
CHARITIES WITH A GREAT TRACK
RECORD AND INSTANTLY THERE
THERE'S BEEN A NUMBER OF STATES
THAT HAVE DONE THIS IN TWO
FIFTEEN. ROUTE TO THOUSAND
FIFTEEN MORE THAN A HUNDRED AND
THIRTY THOUSAND FILERS. SENT
OVER THIRTY SIX.
MILLION DOLLARS TO CHARITIES IN
ARIZONA.
SO IT REALLY HELPED CHARITIES
WHICH OF COURSE HELPS PEOPLE.
IN NEED AS WE KNOW FOR THOSE
WHO CHOOSE TO ITEMIZE THEIR TAX
DEDUCTIONS SP FOURTEEN UNIFIED
CONTINUES TO PROVIDE AN
INCENTIVE FOR MAKING DONATIONS
TO CHARITY AND OTHER. QUALIFIED
NON PROFITS MAKING A DIFFERENCE
IN THE LIFE OF INDIVIDUALS
DIRECTLY INSTEAD OF FUNNELING
THE MONEY THROUGH GOVERNMENT.
AND SO TODAY WITH ME IN SUPPORT
OF THIS BILL IS THE AND JOHNSON
ON BEHALF OF THE SPAM SPONSOR WE
DO BETTER ALONG WITH SUSAN
MONTHLY. OF THE FOUNDER AND
CLINICAL DIRECTOR OF GENERATION
I GENERATE HOPE WHICH IS IN SAN
DIEGO. BY WHICH WORKS TO COMBAT
THE EVILS OF SEXUAL. TRAFFICKING
SO.
THANK YOU VERY MUCH AND WHO
WOULD EVER LIKE TO. BEGIN LADIES
FOR PARK HILL HAD DAMP THANK YOU
MUCH AT MISTER SENATOR.
IN WE WELCOME MR JOHNSON TO
COMMITTEE OF TWO MINUTES HER AND
THINK YOU FOR TRAVELING I'D AWAY
FROM THE GREAT STATE OF GEORGIA.
ALTHOUGH IT'S A GEORGIA THANK
YOU SO MUCH
THANK YOU SIR CHAIR MCGUIRE
BONNEVILLE MEMBERS OF THE
COMMITTEE. MY NAME STAND JOHNSON
I'M THE EXECUTIVE DIRECTOR OF WE
DO BETTER. WITH THE SPONSORS OF
S. B. FORTUNE EIGHTY FIVE AND
I'M HERE TO TESTIFY ON BEHALF OF
THE BILL.
WE'RE BIPARTISAN GROUP OF
ACTIVISTS POLICY EXPERTS LEGAL
PROFESSIONALS AND PUBLIC
SERVICES ADVISORS FROM ALL WALKS
OF LIFE.
WE'RE BEST KNOWN FOR DISASTER
RELIEF RESPONSE TO HURRICANE
MARIA BUT WE HELPED OUR FELLOW
AMERICANS IN FEDERICO IN THE U.
S. B. I BY DELIVERING FOUR
MILLION POUNDS OF RELIEF AID TO
THE CARIBBEAN.
IN JULY OF LAST YEAR I ALONG
WITH VIDEOGRAPHER FLEW TO YOUR
NEIGHBORING STATE ARIZONA TO
LOOK AT THE ARIZONA CHART WILL
CREDIT.
AS WE TOURED THE STATE WE HEARD
THE SAME STORY OVER AND OVER
AGAIN SOMEONE WHO STRUGGLED WITH
DRUG ABUSE FOR YEARS
SHOW US HOW WHEN SHE ENTERED
STEPS TO RECOVERY HOMES AND
ARIZONA NONPROFIT.
THEIR FOCUS ON A FULL PROGRAM
INSTEAD OF A COUNSELING SESSION
HELPED HER GET ON HER FEET. A
FORMER EMPLOYEE OF THE ARIZONA
DEPARTMENT OF REVENUE AT STAR
EMERGENCY SHELTER.
G. COSTLY RECEIVE CALLS FROM
STATE EMPLOYEES TO TAKE A
HOMELESS PERSON EN DURING SOME
BRUTALLY COLD ARIZONA NIGHTS.
AND ELDERLY KOREAN VETERAN
SHOWED US HOW THE LOCAL HABITAT
FOR HUMANITY BUILT IN A
WHEELCHAIR RAMP AFTER WAITING
FOR YEARS ON PUBLIC ASSISTANCE
ALL.
ELECTED OFFICIALS IN ARIZONA
BACK THIS UP.
BY THE END OF TWO THOUSAND
SIXTEEN GOVERNOR DOUG DUCEY
SIGNED A BIPARTISAN BILL DOUBLE
THE CREDIT FROM TWO HUNDRED TO
FOUR HUNDRED DOLLARS PER PERSON.
WE SPOKE TO ARIZONA STATE
SENATOR DEMOCRAT DAVID BRADLEY
AND REPUBLICAN STATE SENATORS
STEVE YARBOROUGH CO SPONSORS OF
THAT DOUBLING. NAY LOVE TUG
BROUGHT THEIR COMMUNITY TOGETHER.
pFILLED IN THE GAPS IN STATE
SERVICES AND THE MONEY WAS
DIRECTED TO EFFECTIVE
ORGANIZATIONS. THE DATA ALSO
BACKS THAT UP. IN THE FIRST YEAR
ABOUT TWO THOUSAND SEVEN HUNDRED
TAXPAYERS TOOK ADVANTAGE OF THIS
CREDIT. HOWEVER LAST YEAR OVER A
HUNDRED AND THIRTY SIX THOUSAND
TAXPAYERS TOOK ADVANTAGE OF THIS
CREDIT AND SENT OVER FIFTY TWO
MILLION DOLLARS TO THESE
NONPROFIT ORGANIZATIONS.
A STUDY FROM THE URBAN INSTITUTE
FOUND THAT THIS INCREASED
CHARITABLE DONATIONS BY AT LEAST
DOUBLE IN THE FIRST FEW YEARS.
THIS ALSO SAVES THE STATE
REVENUE.
ON A DIFFERENT SUBJECT BUT A.
EDUCATION TAX CREDITS A
SPECIFICALLY LIMITED EDUCATION
THE OFFICE OF PRO PROGRAM POLICY
ANALYSIS AND GOVERNMENT
ACCOUNTABILITY OF PAKA IN
FLORIDA FOUND THE BECAUSE OF
MONEY SAVED THE STATE A
CORPORATE SCHOLARSHIP TAX CREDIT
ACTUALLY LEFT MORE MONEY IN THE
STATE COFFERS THAN BEFORE.
APPROXIMATELY ONE DOLLAR A
DOLLAR AND THIRTY CENTS WAS
SAVED BY THE STATE FOR EVERY
DOLLAR TAKEN OUT BY THE CREDIT.
MY TEAMMATE WE DO BETTER HAS RUN
SIX NATIONAL NONPROFIT
ORGANIZATIONS.
THEY RANGE FROM CONSERVATIVE TO
PROGRESSIVE AND AS YOU CAN SEE
BY THE OVER FOURTEEN NONPROFITS
THAT SUPPORTED THIS BROUGHT IN
FRONT OF THE COMMITTEE. WE
GATHER SUPPORT FROM ACROSS THE
AISLE.
I HAVE NEVER AND WE'VE NEVER
SEEN BEFORE A DIVERSE COALITION
ON AN ISSUE LIKE THIS.
ANTI HUMAN TRAFFICKING ON
PROFITS ADDICTION RECOVERY
NONPROFITS TRANSITIONAL HOUSING
DISASTER RELIEF AND MORE HAVE
SUPPORTED THIS BILL. IN ADDITION
REPUBLICAN GROUPS SUCH AS EAGLE
FORUM AND PROGRESSIVE GROUPS
LIKE PROXY VOTE AND EVEN THE
MAYOR OF CALAMY SICK CALIFORNIA.
HAVE COME OUT AND SAID THAT THEY
WOULD LIKE TO SEE MORE CITIZENS
GIVEN THE OPPORTUNITY TO SEND
THEIR MONEY TO THE ORGANIZATIONS
THAT DO BEST FOR THEIR COMMUNITY.
THERE'S A POPULIST WAVE SWEEPING
THE COUNTRY WHETHER YOU LOOK AT
DONALD TRUMP OR YOU LOOK AT
BERNIE SANDERS PEOPLE WANT MORE
OF A SAY IN HOW THEIR GOVERNMENT
OPERATES AND THEY WANT MORE OF A
SAY IN HOW HUMAN NEEDS ARE
DRESSED IN THEIR COMMUNITIES.
AND WHETHER YOU LOOK AT THE
GREAT ORGANIZATIONS HANDLING THE
CALIFORNIA WILDFIRES SUCH AS YOU
WERE INVOLVED WITH JERRY MCGUIRE.
OR YOU LOOK AT.
AN ORGANIZATION LIKE SAVED IN
AMERICA WHICH RESCUES MISSING
CHILDREN NINE DAYS.
EACH AND ONLY A COST OF A
THOUSAND OR NINE THOUSAND
DOLLARS PER CHILD TO THE
ORGANIZATION. THEIR
ORGANIZATIONS IN CALIFORNIA THAT
FILL IN THE NEEDS ALL ACROSS
YOUR STATE.
WHAT WE WOULD LIKE TO DO?
HIS SAY YOU THE PEOPLE OF
CALIFORNIA HAVE THE OPTION NOW
TO DIRECT A SMALL AMOUNT OF YOUR
TAXES TO THOSE ORGANIZATIONS
HAVE A SAY IN YOUR GOVERNMENT
HAVE A SAY IN PUBLIC SERVICES.
AND SUPPORT THE ORGANIZATION'S
MEETING HUMAN NEEDS THE PAST
IN YOUR COMMUNITIES.
THANK YOU SO MUCH AS A JOHNSON
GRATEFUL YOU'RE HERE IN AGAIN WE
ARE.
I DEEPLY APPRECIATE TRAVELING A
AS FAR AS YOU DID TO BE A
CONTEST FIGHT TODAY THANK YOU SO
MUCH. NOT GONNA BE TURNED OVER
HIS MONTHLY WE DID I HAVE MISTER
JOHNSON GO.
LONGER THAN WHAT WE TYPICALLY
DO JUST BECAUSE I HE TRAVELED SO
FAR RESPONSE IN THE FLOOR SHORES
AND WE WELCOME YOU TO COMMITTEE.
THANK HIM.
AND GOOD MORNING. I'M HERE AS A
SURVIVOR OF SEX TRAFFICKING.
TO TESTIFY ON BEHALF OF S. B.
FOURTEEN EIGHTY FIVE.
WHEN I WAS SIXTEEN I WAS LOST IN
VULNERABLE DUE TO MY PARENTS
DIVORCE
AND THE SUBSEQUENT MOVE TO A NEW
CITY.
I WAS OUT OF MY ELEMENT AND NO
LONGER HAVE LIFE LONG FRIENDS TO
SUPPORT ME.
I LOST THE STRUCTURE HAD GROWN
UP WITH AND FELT UTTERLY ALONE.
THEN I MET AN OLDER GUY I
THOUGHT HECK I HAD FOUND SOMEONE
WHO CARED FOR ME AND WHO I COULD
TRUST.
I WAS SO WRONG. I HAD BEEN DUPED
LIKE SO MANY OTHER YOUNG WOMEN
AND FOUND MYSELF COERCED INTO
SEX TRAFFICKING.
BY SOMEONE WHO WHO MY THOUGHT.
HAD LET ME.
THE IMPACT HAS BEEN LIFELONG.
FORTUNATELY FOR ME I WASN'T
TRAFFIC FOR LONG BEFORE I WAS
ARRESTED.
BEING ARRESTED WAS A BLESSING TO
ME. AS IT GAVE ME TIME TO THINK
ABOUT WHAT HAPPENED AWAY FROM
THE CONTROL OF MY TRAFFICKER.
I WAS ABLE TO STEP AWAY BEGIN TO
START MY LIFE OVER.
UNFORTUNATELY AFTER MY ARREST
THERE WERE NO PROBLEM PROGRAMS
TO HELP ME.
I WITH MY RECOVERY AT THAT TIME
INSTEAD I STRUGGLED WITH
DEPRESSION PTSD. MY VALUE. AND
MY SENSE OF SELF.
WHO?
UNTIL I RETURNED TO SCHOOL AND
GOT INTO PSYCHOTHERAPY.
THROUGH THIS WORK I LEARNED
ABOUT SOME OF THE IMPORTANT
PROVISIONS FOR SOMEONE IN
RECOVERY FROM SEX TRAFFICKING.
EVENTUALLY I GAINED MY BACHELORS
OF SOCIAL WORK MY MASTERS OF
SOCIAL WORK BECAME LICENSE TO
THE AS A CLINICAL SOCIAL WORKER
AND I BEGAN WORKING AS A
THERAPIST.
OVER THE YEARS I ALWAYS KNEW
THAT SOMEHOW MY EXPERIENCE AS
THE TRAFFICKING SURVIVOR WOULD
COME TO BE USEFUL IN MY WORK.
THEN TEN YEARS AGO I BEGAN
MEETING WITH OTHERS WHO SAW SEX
TRAFFICKING IS A HUGE ISSUE IN
SAN DIEGO.
WE KNEW ALONG WITH LOS ANGELES
SAN FRANCISCO.
THAT SAN DIEGO WAS IN THE TOP
TEN CITIES NATIONWIDE FOR
COMMERCIAL SEXUAL EXPLOITATION
OF CHILDREN.
WE ALSO KNEW THAT THERE WERE NO
PROGRAMS IN SAN DIEGO TO HELP
WOMEN ESCAPE IN THE SEX TRADE.
THE COMBINING RESEARCH
TRAINING AND MY EXPERIENCE
WITHOUT A GENERATE HOPE AND
OPENED OUR DOORS.
THAT GENERATE HOPE WE WORK WITH
WOMEN WHO'VE BEEN SEX TRAFFICKED
WE PROVIDE RESIDENTIAL CARE IN A
HOME LIKE SETTING. WHERE TO
HOUSE MOM'S LIVE WITH THE WOMEN
TO KEEP THINGS RUNNING SMOOTHLY?
MONDAY THROUGH FRIDAY FROM NINE
AM TO THREE PM THE WOMEN ATTEND
OUR PROGRAM.
WHICH IS ON THE SAME PROPERTY
BUT IN A DIFFERENT BUILDING. WE
HAVE A CREDENTIALED TEACHER ON
STAFF WHO HELPS THE WOMEN
LEARNED TO BE SCHOLARS.
EARN THEIR HIGH SCHOOL DIPLOMAS
AND PREPARE FOR COLLEGE OR TRADE
SCHOOL.
WE ALSO HAVE A THERAPIST ON
STAFF.
WHO WORKS ALONGSIDE AN INTERN
FROM A LOCAL COLLEGE TO PROVIDE
INDIVIDUAL AND GROUP
PSYCHOTHERAPY TO HEAL THE TRAUMA
OF THE SEX TRADE?
WE HAVE ADJUNCT THERAPIES SUCH
EQUINE THERAPY ART THERAPY YOGA
DANCE PHOTOGRAPHY IN FINANCIAL
LIDDED LITERACY. TO HELP WOMEN
FIND THEIR PLACE IN THE WORLD.
WE COLLABORATE WITH OUR
COMMUNITY TO PROVIDE MEDICAL
DENTAL AND PSYCHIATRIC CARE.
ALONG WITH TATTOO REMOVAL AS
MANY OF THE WOMEN ARE BRANDED BY
THEIR TRAFFICKERS.
WE ALSO HAVE ACUPUNCTURE AND
CHIROPRACTIC COMING ALONG.
IN SHORT WE PROVIDE A HOLISTIC
HEALING SOLUTION TO HOLISTIC
ISSUE.
THE WOMEN WE SERVE ARE MOSTLY IN
THEIR TWENTIES HAVING BEEN
TRAFFIC SINCE FIFTEEN OR SIXTEEN
WHICH IS THE AVERAGE AGE OF
ENTRY INTO SEX TRAFFICKING.
THEY ARE AMERICAN CITIZENS FOR
THE MOST PART RECRUITED OUT OF
OUR HIGH SCHOOLS MIDDLE SCHOOLS
MALLS PUBLIC TRANSPORTATION
FOSTER HOMES GROUPHOMES. OFF
THE INTERNET AND ANYWHERE THAT
YOUNG PEOPLE MAY HANG OUT.
THERE ARE TRAFFIC OUT OF THE US
OUT OF ANY U. S. CITY AND OFTEN
MOVED AROUND TO KEEP THEM
CONFUSED INDEPENDENT.
THEY ARE MOST LIKELY BOYFRIEND
IT IN BY AN OLDER MALE. AND
PHYSICALLY SEXUALLY AND
EMOTIONALLY ABUSED.
TO KEEP THEM COMPLIANCE.
THEY ARE OUR DAUGHTERS ARE
SISTERS OUR NEIGHBORS OUR
FRIENDS.
AS WE WORK WITH THESE YOUNG
WOMEN IT GENERATE HOPE WE ASSESS
FOR PTSD MAJOR DEPRESSIVE
DISORDER AND SELF ESTEEM. WHAT
WE'VE FOUND IS THAT ALL SEX
TRAFFICKED WOMEN COME IN WITH
PTSD AT THE SAME LEVELOF
RETURNING VIETNAM VETERANS?
AND BOTH HAVE COME BACK IN SHAPE.
MANY TRAFFICKED WOMEN ALSO HAVE
MAJOR DEPRESSIVE DISORDER AND
LOW SELF ESTEEM.
HOWEVER AFTER GOING THROUGH OUR
PROGRAM WOMEN HAVE SHOWN
SIGNIFICANT IMPROVEMENT IN ALL
AREAS.
AFTER SIX TO TWELVE MONTHS WE'RE
ABLE TO NEW PTSD DEPRESSION AND
SELF ESTEEM INTO THE NORMAL
RANGE.
WOMEN ARE CHANGING GROWING AND
DEVELOPING IT GENERATE HOPE.
CELINE COLLEGE AT THE TOP OF
THEIR CLASSES.
THEY'RE MOVING ON TO NEW LIVES
FREE FROM THE TRAUMA OF THE SEX
TRADE AND REACHING THEIR DREAMS
AND GOALS FOR THEIR NEW LIVES.
THE COST TO IMPRISON AN
INDIVIDUAL IN CALIFORNIA SEVENTY
ONE THOUSAND DOLLARS A YEAR.
WHILE THE COST FOR OUR PROGRAM
IS APPROXIMATELY FIFTY THOUSAND
PER WOMAN FOR YEAR.
WITH THE HELP OF VOLUNTEERS
ENDING ENGAGEMENT FROM OUR
COMMUNITY THAT INCLUDES ALL THE
THERAPY EDUCATION HOUSING FOOD
CLOTHING AND ALL THEIR
NECESSITIES.
THAT'S ABOUT THE SAME IS PUTTING
YOUR CHILD THROUGH A YEAR TO OF
COLLEGE WHO ABOUT THIRTY SECONDS
MA'AM.
S. B. FOURTEEN EIGHTY FIVE THE
CALIFORNIA WE DO BETTER BILL.
COULD HELP CHANGE THAT BY
ALLOWING PEOPLE IN CALIFORNIA TO
DIRECT SOME OF THEIR TAX DOLLARS
TO HELP SOLVE THE PROGRAM
PROBLEM OF SEX TRAFFICKING.
S. B. FOURTEEN EIGHTY FIVE WOULD
ALSO HELP US TO NOT JUST TO STAY
OPEN BUT TO EXPAND.
THAT AND AND TREAT MORE WOMEN.
S. B. FOURTEEN EIGHTY FIVE WOULD
HELP OUR COMMUNITY GAUGE AT A
GREATER LEVEL TREATED THE
HOLISTIC NATURE THE ISSUE. WITH
THE MULTIPLE PROVIDERS ENGAGED
IN THE WORK OF REHABILITATION.
REHABILITATION REQUIRES A MULTI
PRONGED APPROACH.
BECAUSE THE DAMAGE RUN SO DEEP
AND WIDE.
IMAGINE THE IMPACT OF THIS BILL
TO OUR WORK I GENERATE HOPE.
THESE CHARITABLE DOLLARS ARE
INSTANTLY AT IMMEDIATELY HEALING
IMPACT TO THE VICTIMS LIVES AND
MEANT SAVINGS ON THE PUBLIC CARE
SYSTEM.
I ASK THE COMMITTEE TO PLEASE
SERIOUSLY CONSIDER THE BENEFITS
OF SP FOURTEEN EIGHTY FIVE. AND
HELP US HELP SURVIVORS GET OUT
OF THE SEX TRADE AND ON TOWARD
THEIR LIFE JOURNEYS THANK YOU
FOR YOUR TIME. THANKS SO MUCH
FOR STRUGGLING AGAIN WANTING TO
BE ABLE TO PROVIDE EACH OF THE
WITNESSES SOME ADDITIONAL TIME
AS THEY BOTH TRAVELED. OUT FROM
FARM WHY TO BE A TO BE WITH US
TODAY IN HOUSE ONCE A THANK YOU
FOR TELLING YOUR PERSONAL
STORIES WELL. ARE AND HOW YOU
HAVE TURNED ABSOLUTE TRAGEDY AYE
IN PROVIDING HOPE I IN A NEW
LIFE FOR SO MANY AIMED AT VERY
VERY GRATEFUL THANK YOU SO MUCH
FOR BEIG HERE. WE'D LIKE TO BE
ABLE TO NOW WELCOME ANYONE ELSE
WHO'S IN SUPPORT OF THE BILL. AT
THIS TIME IF YOU CAN PLEASE
COMPORTED THE MICROPHONE WE ASK
THE STATE YOUR FIRST AND LAST
NAME AS WELL AS YOUR POSITION ON
THE BILL OR LOOKING FOR SUPPORT
IF YOU TO PLEASE COME FORWARD.
BLESS YOU.
BOB GLASCOFF FOR THOSE WHO ARE
IN SUPPORT.
WE NOW LIKELY TO SEE ANYONE
WHO'S SUPPOSED IF YOU COULD
PLEASE ADVANCED THIS TIME ANYONE
HAS OPPOSE PLEASE ADVANCE.
LAST CALL.
IT'S BRING IT BACK TO COMMITTEE
FOR QUESTIONS OR COMMENTS FOR
THAT TO BE RECEIVED WITH ANY
QUESTIONS OR COMMENTS FROM THE
COMMITTEE CENTER MORE LUCK SIR.
.
I AM JUST CURIOUS.
CINDERELLA BICU.
BUT WE WE JUST DON'T KNOW WHAT
THE IMPACTS ARE GOING TO BE A
THE DISEASE AT THAT FEDERAL TAX.
BILL IN DECEMBER AWARE A LOT OF
PEOPLE WON'T EVEN GET A
DEDUCTION AT ALL.
FROM. MAKING CHARITABLE
CONTRIBUTIONS.
YOU KNOW HOW THIS WOULD FIT IN.
YEAH HE'S.
WORK WAS SEVEN DIFFERENT STATES
I'M GONNA REFER TO MY EXPERT
WHICH THE WITNESS HERE.
I THINK YOUR QUESTION SORRY.
.
HOW?
IS IT BETTER. OKAY.
I THINK THE QUESTION SENATOR.
ONE OF THE THINGS THAT IS NICE
ABOUT THIS BECAUSE THIS IS NOT A
DEDUCTION THIS IS A TAX CREDIT
IS A DOLLAR FOR DOLLAR TAX
CREDIT.
THAT IT IS THOSE PEOPLE WHO DO
NOT ITEMIZE IT IS THOSE PEOPLE
WHO.
USUALLY DO NOT TAKE THE
CHARITABLE DEDUCTION THAT ARE
USUALLY USING THIS CRAP.
BECAUSE THEY ACTUALLY SIT DOWN
IN FRONT OF THE KITCHEN TABLE
AND NOW THAT THEY HAVE A DOLLAR
FOR DOLLAR CREDIT TO LOOK AT.
THEIR ACTUALLY CONSIDERING WHERE
IS MY MONEY GOING AND WHERE DO I
WANT MY MONEY TO GO THE BENEFIT
IS SO MUCH HIGHER. FOR THEM AND
FOR A HIGHER INCOME TAXPAYERS
WHO USES THE CHARITABLE CREDIT
ALREADY. BUT THEY'RE NOT GOING
TO REALLY USE AN EXTRA FIVE
HUNDRED DOLLARS.
THEY'RE GOING TO PREFER TO TAKE
THE. DEDUCTION OVER THOSE FIVE
DOLLARS BECAUSE IT'LL BENEFIT
THEM BETTER TAX WHAT.
TO BE DONE ANY ANALYSIS.
WE'VE DONE SOME ANALYSIS AYE IN
ARIZONA AND GENERALLY FOUND THAT
WHEN WE REMOVED THE ITEMIZING A
REQUIREMENT IN ARIZONA WHICH
USED TO REQUIRE YOU TO ITEMIZE.
THE DONATIONS AND. TWO THOUSAND
AND FIFTEEN OR THIRTY TWO
MILLION THE NATION'S IN TWO
THOUSAND SIXTEEN WHERE.
WHERE THIRTY SIX MILLION THE
NATION'S AND DOESN'T SIXTEEN
WHERE FIFTY TWO MILLION SO IT
WAS A NOTHING BECAUSE THE
COMMUTER ITEMIZE OR TAKE THE
CREDIT?
AND THAT'S BECAUSE THEY COULD
ITEMIZE OR TAKE THE CREDIT. BUT
BACKGROUND I'M A CPA OKAY.
.
SO A DEDUCTION FOR A JOINT
RETURN.
YOU HAVE TAKE CONTRIBUTED ALMOST
ELEVEN THOUSAND DOLLARS.
TO GET A THOUSAND DOLLAR. CREDIT
EQUIVALENT SO THAT.
MAKES THINGS REAL INTERESTING
ESPECIALLY NOW YOU DON'T TO DOT
SO NOW YOU GOTTA GO THROUGH A
GRID.
IF I CAN DEDUCT FIVE MINUTE
DEDUCTIONS TO GET IT.
PRODUCTION ON MY SCHEDULE A OVER
THE TEN FORTY THEN.
I DON'T USE THIS CREDIT BUT IF I
DON'T I JUST SAID THEN I'LL TRY
AND TAKE THE CREDIT. I I JUST
DON'T KNOW WHAT'S GOING TO
HAPPEN WITH THIS TAX BILL.
BECAUSE.
NO MAYBE IT ENCOURAGES SMALL
DONORS TO START GIVING.
MAYBE IT DISCOURAGES BIG DONORS
FROM GIVING IF THEY'RE IN THAT
MIDDLE SECTION AND NONPROFIT
START TO SEE A REAL DECLINE.
IN CONTRIBUTIONS AND I I DON'T
KNOW ABOUT WHERE THAT GOES INTO
AN ADDRESS THIS YEAH LET ME
FINISH MY NECK ON.
.
SO I HAVE A FEW MORE QUESTIONS
SIR.
THE.
THE CONCERN I HAVE IS IS WE
DON'T EVEN HAVE CONFORMITY BILLS
OR ANYTHING.
GOING ON OVER THE GOVERNOR'S
GONNA DO IT MISTER CHAIR OF WERE
GONNA DO. SOMETHING IS WE WE
DEAL WITH THIS FEDERAL TAX BILL.
SO JUST KIND OF AN INTERESTING
THING ABOUT SO SO I GUESS MISTER
JOHNSON ADDED. TO YOU
SPECIFICALLY WHAT'S THE
BACKSTORY WITH ARIZONA WHAT.
WHAT PROMPTED?
THIS IDEA.
SO THE IDEA WAS THAT THE BILL
WAS INTRODUCED AND SIGNED IN
NINETEEN NINETY SEVEN.
AND THAT WAS WHEN.
WELFARE REFORM WAS KIND OF
SWEEPING THE COUNTRY.
AND SO THE IDEA IN ARIZONA WAS A
THAT IF THESE DOLLARS ARE GOING
O GO INTO THESE PROGRAMS ANYWAY
THAT WE SHOULD BE ABLE TO DIRECT
IT TO. KIND OF A WIDER ARRAY OF
SERVICES THAN JUST STATE PROVIDE
WELFARE TO ADDRESS THE VARIOUS
INDIVIDUAL NEEDS OF PEOPLE.
AND SO THAT WAS INTRODUCED.
AND SIGNED BY THE GOVERNOR THE
SENIOR.
AND DID THAT.
ADD TO THEIR PROGRAMS OR WAS WHO
WAS THE STATE OF ARIZONA THEN.
PERMITTED IN THE SENSE TO REDUCE
THEIR FUNDING TO THOSE
PARTICULAR NONPROFIT A THE STATE
OF ARIZONA HAS BEEN PERMITTED TO
REDUCE THEIR FUNDING TO VARIOUS
PUBLIC SERVICES.
BUT THEY HAVE NOT.
THE CREDIT HAS SIMPLY ADDED
MORE TO THE SERVICES THUS FAR.
AND THEN WHERE DO YOU COME UP
WITH THE ANALYSIS THAT FOR EVERY
DOLLAR GIVEN TO A NONPROFIT THE
STATE SAVE DOLLAR THIRTY.
THAT'S FROM THE.
OFFICE OF PROGRAM POLICY
ANALYSIS AND GOVERNMENT
ACCOUNTABILITY IN FLORIDA IT
AGAIN.
BUT IT IS TOPANGA IT IS THE
OFFICE OF PROGRAM POLICY
ANALYSIS AND GOVERNMENT
ACCOUNTABILITY.
IN FLORIDA.
WHAT IS A FLORIDA CARE?
WAS WHAT WAITED WISE'S
ORGANIZATION OUT OF FLORIDA.
THAT THEY WERE ASKED TO LOOK AT
OURS ARIZONA.
THEIR STATE AGENCY.
IN FLORIDA AND FLORIDA HAS A
CREDIT SIMILAR TO THIS BUT
SPECIFICALLY FOR EDUCATION THAT
THEY LOOKED AT.
OKAY I THINK THOSE ARE ALL MY.
QUESTIONS RESEARCHER THANK YOU
THANK YOU SO MUCH ANYMORE LUCK
IF WE CAN GO INTO THE FLORIDA
THE VICE CHAIR IN THE MORNING
VICE CHAIR.
THANK THANK YOU MISTER CHAIRMAN.
OF SENATOR MORLOCK I'M MORALE
HOOPS OR HE. THOROUGH I'VE YOU
KNOW WE'VE SEEN MANY TAX CREDIT
BILLS THIS YEAR. ON EACH
ABSOLUTE A HAVE A VERY GOOD
BECAUSE I MYSELF ABOUT THE TWO
OF THEM.
AND CAN YOU KIND OF WALK ME
THROUGH ON HOW YOUR BILL TO
INCREASE OF TAX CREDITS FOR
CONTRIBUTIONS NONPROFIT.
CHARITIES WOULD ACTUALLY HELP
OUR COMMUNITIES YEAH THANK YOU
THANK YOU SENATOR WENT. YOU KNOW
ON.
SINCE I'VE BEEN IN THE SENATE.
BOB YOU KNOW YOU READ STUDIES I
THINK THE HOOVER INSTITUTE DID A.
STUDY ONE TIME. THAT SAID.
TOP UNDER CHARITIES IN AMERICA
GIVE.
EIGHTY FIVE CENTS ON THE DOLLAR
YOU DONATE TO THEM ACTUALLY GETS
IN THE HANDS OF THE PEOPLE THEY
WANT TO HELP AGAIN RED CROSSES
IT NINETY PERCENT I THINK A.
SALVATION ARMY IS THAT EIGHTY
SEVEN PERCENT AND ARE YOU KNOW
THEIR CHRISTMAS TIME YOU SEE
THOSE GUYS OUT THERE. WITH THE
RED.
SUITS MANY OF THOSE GUYS ARE
JUST VOLUNTEERS AND AND SO
THAT'S GREAT WHEN.
YOU GIVE TO OUR. ORGANIZATION
YOU WANT BECAUSE TYPICALLY
CITIZENS.
DO NOT GIVE FOR POLITICAL
REASONS THEY GIVE FROM THEIR
HEART YOU SEE AND THEY TARGET
THOSE THINGS IT SORTA THAT THEY
WANT TO HELP. IN AGAIN SINCE
I'VE BEEN IN THE SENATE AND IN
THE ASSEMBLY I'VE SEEN HOW
GOVERNMENT YOU KNOW WE PAY SOME
BIG DOLLARS FOR ADMINISTRATORS
IN THAT KIND OF THING AND SO. ON
THERE'S BEEN SOME STUDIES DONE
IT IT'S PRETTY TOUGH TO TO GET
FORTY CENTS ON THE DOLLAR AND
EVEN FIFTY LET ALONE FIFTY CENTS
ON THE DOLLAR. BOMB INTO THE
PEOPLE'S HANDS WHO WE WANT TO
REALLY HELP BECAUSE THERE'S SO
MUCH ADMINISTRATION FEES AND SO
THIS TAKES SOME. OF THE PRESSURE
OFF OF GOVERNMENT. AND.
IN. YOU KNOW THE TRACK RECORD
OF ALL CITIES CHARITY SEEM TO BE
MORE EFFICIENT AND MORE
EFFECTIVE.
WITH THE MONEY THAT IS GIVEN TO
THEM THEN GOVERNMENT DOESN'T SO.
I THINK THAT'S A BIG IMPORTANT
KEY.
EFFICIENCY WITH THE CITIZENS
MONEY BUT ALSO I THINK IT'S
GREAT WHEN CITIZENS HAVE THE
ABILITY TO TAKE OWNERSHIP AND
SOMETHING YOU KNOW WE PAY OUR
TAXES AND THEN. YOU KNOW THE
GOVERNMENT DECIDES WHERE THAT
MONEY GOES IN THIS PARTICULAR
CASE A CITIZENS GET TO
PARTICIPATE THEIR PART OF THE
THE THING AND. AND I THINK
THAT'S GOOD BECAUSE QUITE OFTEN
WHEN PEOPLE GIVE TO AN
ORGANIZATION THEY'LL ALSO SHOW
UP TO HELP. AND SO ON AND I
THINK.
CHARITABLE INVOLVEMENT.
IN YOUR COMMUNITY AND NONPROFITS
CHURCHES AND CHARITIES I THINK
BOMB VIDEOS GOOD FOR OUR SOULS
AND AND SO THAT WAY. IT REMOVE
SORT OF GOVERNMENT OUT OF THE
WAY AND IT GIVES PEOPLE A CHANCE
TO ACTUALLY GET INVOLVED AND SO
THAT'S THAT'S WHY WE DID THIS
AGAIN BECAUSE I THINK PLEASE
PEOPLE. DON'T MAKE DECISIONS
WHEN THEY GIVE BASED ON THEIR.
POLITICS A DO IT FROM THEIR
HEART. AND SO WE WANT PEOPLE
ABILITY TO DO THAT BUT ALSO WE
WANT THESE AYE NONPROFITS AND
CHARITIES TO PROSPER WE WANT
THEM TO DO WELL WE WANT THEM TO
THRIVE. BECAUSE BOMB SUSAN'S
ORGANIZATION HIS PRODUCE ANY
RESULTS.
YOU KNOW THERE'S MEASURABLE
RESULTS THAT THEY'RE PRODUCING
HELPING THESE WOMEN. TO TRY TO
GET THEIR LIVES BACK TO NORMAL
AFTER THEY WERE.
TAKEN ADVANTAGE OF AND SO AGAIN.
I LIKE GIVEN TO ORGANIZATIONS
THAT PRODUCE RESULTS AND.
AND THAT'S WHEN THE RESULT LIKE
BILL BECAUSE JOHN AND I CAN GIVE
TO DIFFERENT PLACES WERE VERY
CAREFUL ON WHO WE GIVE HIM
BECAUSE WE WOULD LIKE TO SEE.
THAT WE GET OUR MONEY'S WORTH.
THANK YOU AYE AYE PAUSES I THINK
HE CAME IN AFTER YOU'VE SPOKE.
AFTER YOU SPOKE GRAY BUT A LOT
FOR WHERE I READ YOU'RE NOT
TAKING THE SUGGESTED AMENDMENTS.
ON TO DECREASE THE
INCOMPRESSIBLE OF.
WHAT I WHY IS THE AND THE ASHES
IT TO THE INC TO DECREASE INCOME
THRESHOLD FOR THE LOWER INCOME
INDIVIDUALS?
WHO COULD TAKE ADVANTAGE OF THIS
PROGRAM WHAT WHY IS THAT WHY
WOULD YOU TAKE THE SUGGESTED
AMENDMENTS? ONE THING WE WANT I
DID YOU KNOW WE WANT PEOPLE TO.
WHO MAKE MORE THAN FORTY
THOUSAND A YEAR?
YOU KNOW PERSON WHO MAKES
EIGHTY THOUSAND A YEAR PROBABLY
IS GOING TO HAVE THE ABILITY TO
GIVE.
BETTER THAN PERSON FORTY
THOUSAND SO WE TO STOP THOUGH
STRUCTURE CLOSER TOO LOW ONE
OPEN IT UP.
HE NOW OPPORTUNITY FOR ALL IN.
HANNAH.
AND THAT SORT OF THING SO.
THANK YOU THEY'RE WELCOME THANK
YOU FOR THAT QUESTION.
I THINK IT'S MUCH BETTER BY
STIRRING OF THE QUESTIONS.
SO I DO APPRECIATE IT CENTER
MORALES WORK A ON THIS BILL
DISICK COUPLE OF COMMENTS AND
ALWAYS ENJOYED WORKING WITH
CENTER MORALE AND ALSO
APPRECIATE HIS DESIRE. TIED TO
BE ABLE TO INCREASE CHARITABLE
GIVING I THINK THAT WE ALL HAVE
THAT AND.
.
THE I THINK TO CHALLENGE THE
COMMITTEES HAD IS THAT THE
COMMITTEE DANCED A VERY MODRATE
AMENDMENTS.
I'M TO THE BILL BUTTON IN SD
FORTY FIVE.
SHIFTS MORE THAN THREE AND A
HALF BILLION DOLLARS IN ITS
CURRENT FORM ANNUALLY FROM STATE
FUNDED PROGRAMS.
LIKE LAW ENFORCEMENT IN
EDUCATION DEPRIVE CHAIRED A
BECAUSE IT WOULD IMPACT THE
GENERAL FUND. WITH NO PLAN TO BE
ABLE TO PLUG THE DEFICIT THAT
THIS WOULD POTENTIALLY CREATE. A
AND I WILL BE THE FIRST TO BE A
TO SAY THAT NON PROFITS IN
UPDATE BASED ORGANIZATIONS HERE
IN THE GOLDEN STATE PLAY A VITAL
ROLE IN IMPORTANT ROLE. HIGH IN
OUR SOCIETY WHICH IS WHY THIS
STATE PROUDLY OFFERS A
CHARITABLE CONTRIBUTION
DEDUCTION SEVERAL OF THEM. BUT
IN CAN WE DO BETTER ABSOLUTELY
HOPE WHICH IS WHY IN GOOD FAITH
WE. HAVE BEEN WORKING WITH THE
SENATOR'S OFFICE TO BE ABLE TO
OFFER AMENDMENTS TO BE A TO KEEP
THIS BILL MOVING.
ON IN THE TO AMENDMENTS WERE TO
ADD IN INCOME LIMITATION FOR
THOSE WHO CAN QUALIFY FOR THIS
CREDIT AND YOU DECREASE THE
DOLLAR FOR DOLLAR ONE FOR ONE
CREDIT TO TWENTY PERCENT.
SO THE CONTRIBUTION LEVELS WOULD
BE FORTY THOUSAND DOLLARS SINGLE
EIGHTY THOUSAND DOLLARS.
AT MARRIED COUPLE IT'S VERY
IMPORTANT TO BE ABLE TO TAKE A
LOOK AT A FAMILY OF FOUR IN THE
SAN FRANCISCO BAY AREA. IS SIXTY
FOUR THOUSAND DOLLARS.
SO.
BOTH AMENDMENTS WOULD HAVE A.
REDUCE THE STATE'S REVENUE LOSS.
WHILE STILL ENCOURAGING BOTH
LOWER AND MODERATE INCOME
TAXPAYERS TO BE ABLE TO DONATE
TO PRIVATE CHAIRED.
IN BEING HONEST.
WE.
I FROM THE AIR OFFICE YOU DID
NOT WANT TO TAKE THEM THAT MEANS
WHETHER IT'S A REPUBLICAN OR
DEMOCRAT THAT'S COMING FORWARD.
AT THERE'S ALWAYS SOME TYPE OF
BACK AND FORTH OUT WITH THE
COMMITTEE ON IT WE DO NOT HAVE
ANY FROM YOUR OFFICE.
SO BOTH AMENDMENTS WERE REJECTED
A REJECTED BUT WHICH IS WHY
CAN'T SUPPORT A SENATE BILL
FOURTEEN EIGHTY FIVE IN ITS
CURRENT FORM AGAIN I THINK THAT.
BICU HAVE DONE A PHENOMENAL
WORK SANTA MORALE. THAT BUT THAT
WE NEEDED TO BE ABLE TO CLOSE AT
THREE AND A HALF BILLION DOLLAR
HIT THAT WE WE WE WOULD HAVE
SEEN. THAT FROM.
THIS BILL TO STATE REVENUE HOT
BUT I'LL LET YOU CLOSE AYE IN
I'LL BE RECOMMENDING YOU KNOW
VOTE TODAY.
YEAH YEAH YOU KNOW I I
DON'T KNOW IF I REALLY.
FIRST OF ALL THANK YOU FOR AT IT
WITH THOSE THRESHOLDS THE U.
LOWER TO WORK WERE TO ALLOW IT
SO I.
IT'S SORT OF I I YOU KNOW WE'RE
WE'RE TRYING TO TRACK MONEY FROM
OTHER PEOPLE OTHER THAN WHO MAKE
FORTY THOUSAND HERE YOU KNOW.
A SINGLE PERSON THE SECOND THING
IS TO LORENA THOSE DEDUCTIONS
IT'S ARTS ALMOST LIKE WHY BOTHER
THEY'RE PRETTY LOW ALREADY. AND
AND I HAVE TO TELL YOU BASED ON
SOME OF THESE OTHER STATES I
KINDA DON'T THINK THE THE THESE
NUMBERS THERE. ARE REALLY THAT
THAT GOOD YOU KNOW.
BECAUSE.
OTHER STATES IT'S ACTUALLY.
HAVE IT'S ACTUALLY PROFITED
BECAUSE THEY WERE ABLE TO CUT
BACK ON SOME OF THEIR GOVERNMENT
PROGRAMS AND THEY DIDN'T LOSE
REVENUE. YOU KNOW IT'S
INTERESTING BOMB.
THAT.
I I DON'T KNOW HOW THEY COME UP
WITH THESE NUMBERS IF THE I KNOW
THEY'RE ESTIMATING OUR GUESTS TO
MATING. BUT.
AGAIN OTHER STATES IT'S PROVEN
NOT TO BE SELF SO ANYWAY TOM
THIS IS GOOD FOR THE PEOPLE I
AYE HAD A CHANCE TO GO ON RADIO
LAST NIGHT.
AND ONE OF THE COMMENTS THAT THE
GUY WHO QUESTIONS ASKED ME HE
SAID DO YOU THINK THIS BILL WILL
GO ON I I SAID YOU KNOW I I
REALLY DON'TKNOW I THINK MY
FRIENDS ACROSS STYLE.
ARE GONNA HAVE TROUBLE WITH
THAT BUT I SAID OF THIS WANT TO
VOTE OF THE PEOPLE. THIS WOULD
BE DONE SO THIS IS DEFINITELY A
BILL THAT THE CITIZENS WOULD
WANT THERE'S NO DOUBTMY MY. SO
WITH THAT I RESPECTFULLY ASK
YOUR AYE VOTE. AND.
THANKS FOR YOUR AMENDMENTS BUT.
TODAY THEY JUST GET THE SAME.
.
BOB.
PROFITABLE ENOUGH FOR THE
CITIZENS
I THINK YOU KNOW WE TOLD YOUR
RADIO INTERVIEW THAT WOULD HAVE
BEEN A THREE AND A HALF BILLION
DOLLAR HIT TO THE GENERAL FUND
BUT I'M AND I THINK IF WE
COMPARE.
CALIFORNIA'S POPULATION WHICH
IS NEARLY FORTY MILLION TO
ARIZONA'S POPULATION WHICH IS
SEVEN MILLION IT'S APPLES AND
ORANGES WHAT. THE FORMER THAT
MAY WORK IN ARIZONA TOTALLY
UNDERSTAND WOULD WORK BUT I
THINK WE NEED TO GET DOWN TO
WHAT THE AREA MEDIAN INCOME IS.
THE AREA MEDIAN INCOME IN THE
SAN FRANCISCO BAY AREA WHICH IS
ONE OF THE WEALTHIEST IN THE
ENTIRE COUNTRY FAMILY FOR SIXTY
FOUR THOUSAND.
WE'RE GIVING YOU A MARRIED
COUPLE OF EIGHTY THOUSAND ABOVE
THE AREA MEDIAN INCOME ABOVE.
SO THAT WHAT WE THINK ABOUT WHAT
YOU SENT. WE'RE GIVING YOU.
THE YOU KNOW REMEMBER THIS IS
THE PEOPLE'S MONEY JUST I WANNA
PUT THAT IN CONTEXT SO.
WE SHOULD BE THINKING ABOUT THE
CITIZENS OF MORE THAN WHAT WE
WANT OTHER WORDS YOU'RE
DICTATING TO WHAT THE CITIZEN
SHOULD DO AND I THINK THE BETTER
POLICY IS CONSIDERED TO THE
CITIZENS. AT IT AS A WHOLE AS
WELL AS OUR NONPROFITS AND
CHARITIES.
WHICH IS WHY WE WENT ABOVE AND
BEYOND THE AREA MEDIAN INCOME.
SO I'M WILL BE RECOMMENDING A NO
VOTE THAT TAKE THAT AS A CLOSING
MISS LANE CHESTER BROKEN BOW
PLEASE.
SUPPLIER NO WAY TO KNOW WHEN.
WELL I APOLOGIZE MOTION I
APOLOGIZE I'M SO SORRY VICE
CHAIR PLEASE THINK JUST ROLL
CALL VOTE PLEASE MOTION OF WHICH
IS DUE PASSED APPROPRIATION
THINK VICE CHAIR.
REQUIRED OF THE WIRE NO NGUYEN I
WIN EYES DEL.
BILL NO HERNANDEZ.
HERTZBERG. LARA.
MORE LOCKED.
ONE OF HIS.
CURLY JOE IS A ONE TWO WERE KEEP
THE ROLE OPEN IN WHAT I FOCUS ON
THE KEY SO MUCH
SENATOR.
I THINK.
NEVER HEARD OF SEVERAL FOLKS IN
A MOVE IN IN IN OUT TO OF
COMMITTEE TODAY JUST BECAUSE
WE'RE WORKING ON THE BUDGET I
SENATOR BELL IT HAS BUDGET
COMMITTEE I HE'S GONNA BE
ROLLING OUT. WE ALSO J. THAT
THAT CONTINUES TO MOVE BY GIVE
US ONE MOMENT.
WHY
ALRIGHT LADIES IN GENERAL WERE
NOW CAN BE MOVING ON TO ITEM
NUMBER ONE IN TWO OF THE
COMMITTEE S. B. NINE NINE FIVE
NSP NINE NINE SIX WE HAVE A
SENATOR GAINS WILL BE PRESENTING?
A MEMBERS HE'S WILL BE PRESENT.
THE RED HAIRED GAINES.
SO I JUST HAD A CONVERSATION
CENTER BATES SO WHAT OF THE TWO
OF YOU HAVE A CONVERSATION LET
ME KNOW WHAT YOU ORDERED AS I.
APPARENTLY HE'S JUST TAKE.
LIVES IN GENERAL WE HAVE A
WINNER.
WE ARE MOVING ON LISTEN TO BILL
TWELVE THIRTY SEVEN WITH HIS
SENATOR BATES THIS IS REALLY A
PROPERTY TAXATION CHANGING
OWNERSHIP WE ONE.
WELCOME BY THE REPUBLICAN
LEADER TO THE COMMITTEE WE WANT
TO SAY THANK YOU TO SENATOR
BATES FOR ALL OF HER WORK ON
BEHALF OF THE RESIDENTS OF
CALIFORNIA. IS BATES THE FLOOR
IS YOURS AND WELCOME TO
COMMITTEE.
THANK YOU ON. MISTER CHAIR
MEMBERS LAB QUALITY BEGIN BY
THINKING OF THE CHAIR AND THE
STAFF FATHER. OUT COMMITTEE
STAFF FOR THE TIME HAS BEEN
GIVEN TO DISCUSSIONS ON THE BILL
OVER THE LAST SEVERAL WEEKS SO
THANK YOU ALL FOR THAT.
S. B. TWELVE THIRTY SEVEN ARE
SIMPLY CORRECTS AN OUTDATED
INTERPRETATION OF PROPERTY
CHANGE OF OWNERSHIP THAT HAS
BEEN PART OF A LONG DEBATE
REGARDING COMMERCIAL PROPERTY.
ARE THE BILL SIMPLY REQUIRES ANY
PROPERTY OR SINGLE TRANSACTION
TO BE REASSESSED IF NINETY
PERCENT OF THE OWNERSHIP
INTEREST CHANGES. HANDS WITHIN
ANY THREE YEAR PERIOD EVEN IF NO
ONE PERSON GETS A MAJORITY
INTEREST IN THE LEGAL ENTITY.
PROPOSITION THIRTEEN WAS ENACTED
TO ENSURE THAT PROPERTY TAXES
DID NOT GET FINANCIALLY OUT OF
CONTROL FOR ANY HOMEOWNER OR
BUSINESS.
BUT THERE'S AN AMBIENT GOT HIM
THE DUTY. UNIT THAT IT NEEDS TO
BE TO ADDRESS A PRIME EXAMPLE IS
THE TWO THOUSAND SIX PURCHASE OF
A HOTEL IN SANTA MONICA WHERE
THE PURCHASER REALIZE HE COULD
STRUCTURE THE TRANSACTION
WITHOUT ANY ONE ENTITY OWNING. A
FIFTY PERCENT MAJORITY SHARE IN
THE PROPERTY DESPITE THE FACT
THAT ONE HUNDRED PERCENT
OWNERSHIP. OF THE HOTEL CHANGED
HANDS THE PROPERTY WAS NOT
REASSESSED RESULTING IN A TAX
LOSS.
TO THE COUNTY OF LOS ANGELES OF
OVER A MILLION DOLLARS ANNUALLY.
WHY S. B. TWELVE THIRTY SEVEN
WOULD PROVIDE THAT A CHANGE IN
OWNERSHIP OCCURS WHEN NINETY
PERCENT OF THE LEGAL ENTITIES
OWNERSHIP INTEREST TRANSFERS IN
A SINGLE TRANSACTION? IT DOES
NOT CHANGED PROPERLY PROPOSITION
THIRTEEN BUT SIMPLY MAKES
CHANGES TO HOW IT IS INTERPRETED
IN STATUTE. A SIMILAR BILL MINE
PA IF SPEED TO FIFTY NINE WHICH
I AUTHORED IN TWENTY FIFTEEN
PASSED OUT OF THE COMMITEE ON A
SIX TWO ZERO. THIS BILL IS
ESSENTIALLY THE SAME THOUGHT IT
IS SUPPORTED BY THE HOWARD
JARVIS TAXPAYERS ASSOCIATION THE
CALIFORNIA BUSINESS ROUNDTABLE
THE CALIFORNIA ASSOCIATION OF
COUNTY TREASURER TAX COLLECTORS.
THE CALIFORNIA BUSINESS
PROPERTIES ASSCIATION AND SAN
FRANCISCO CHAMBER OF COMMERCE
AND I DO HAVE TO OUR BOOKS HERE
TO TESTIFY IN SUPPORT WE HAVE
MATTHEW HARGROVE WITH THE
CALIFORNIA BUSINESS PROPERTIES
ASSOCIATION. AND DAVID WOLF WITH
HOWARD JARVIS
I ALSO FOUGHT IN THE AUDIENCE
RICHARD MEN WITH THE BOARD OF
EQUALIZATION TO ANSWER ANY
TECHNICAL QUESTIONS. THAT COULD
ARISE IN OUR DISCUSSION
THANK YOU THANK YOU SO MUCH OUT
WE WILL TURN IT OVER TO A MISTER
WOLF TO BE OF EXCEPT WE ALWAYS.
LOVE HAVE MISS WALDRON
COMMITTEE HE'S GONNA BE HERE ALL
DAY TODAY.
STAY HYDRATED SERB MIGHT GET
YOU OUT WE WATER HERE A THAT'S
WHAT I'M SAYING PATENTS WHAT THE
FLOORS OR THREE OF TWO MINUTES
MISTER CHAIRMAN MEMBERS THANK
YOU DAVID WILL FOOT THE HOWARD
JARVIS TAXPAYERS ASSOCIATION IN
SUPPORT OF THE BALLOT YOU WANNA
START OUT BY MENTIONING. AS MISS
BATES ALSO MENTIONED THAT THIS
BILL DOESN'T CHANGE PROP
THIRTEEN THAT'S IN THE
CONSTITUTION THIS BILL SIMPLY
CHANGES STATUTE AND HOW PROP
THIRTEEN IS IMPLEMENTED.
.
MEMBERS EVERYONE IN THIS ROOM
THE HOWARD JARVIS TAXPAYERS
ASSOCIATION THE BUSINESS
COMMUNITY EVEN I WOULD ARGUE THE
VARIOUS INTERESTS THAT OPPOSE
THIS BILL HERE TODAY. BELIEVE
THAT AN INDIVIDUAL SHOULD NOT BE
ABLE TO COME AND BUY A HOTEL
STRUCTURE THE DEAL BETWEEN HIM
AND HIS WIFE AND AND I'LL SEE
THAT NO ONE INDIVIDUAL RETAINS
FIFTY PERCENT OF THE CORPORATION
AND HAVE THAT NOT BE REASSESSED.
EVERY SINGLE PERSON BELIEVES
THAT THAT TRANSACTION AND THE
OTHER ONE'S MENTIONED IN THE
COMMITTEE ANALYSIS SHOULD BE
REASSESSED.
THAT'S WHAT THIS BILL DOES IT
PROVIDE A NARROWLY TAILORED
REASONABLE RATIONAL FIX THOU
PROPOSITION THIRTEEN IS
INTERPRETED. THE HOWARD JARVIS
TAXPAYERS ASSOCIATION HAS ALWAYS
BELIEVED THAT ANYONE AN
INDIVIDUAL OR BUSINESS SHOULD
PAY THE PROPERTY TAXES TO PAY
LEGITIMATELY OUT. IF THE LIES
BEING ABUSED IN SUCH A WAY THAT
LEADS TO UNFAIR TAX POLICY AGAIN
LIKE SOME OF THE EXAMPLES LISTED
IN THE COMMITTEE ANALYSIS IT
SHOULD BE CORRECTED. S. B.
TWELVE THIRTY SEVEN DOES THAT
AND NO MORE.
.
AND WITH THAT ADAM YOU KNOW FAIR
AND RATIONAL INTERPRETATION ASK
FOR AND I DON'T. THINK IT'S SO
MUCH WHICH WILL FREE WELCOMES
HARGROVE SIR YOU HAVE TWO
MINUTES THANK YOU FOR BEING HERE
TODAY MISTER CHAIR AND MEMBERS
THANK YOU FOR HAVING ME HERE%
TODAY I LOVE FOLLOW UP BACKYARD
WITH THE CALIFORNIA BUSINESS
PROPERTIES ASSOCIATION I'M HERE
TODAY REPRESENTING A WHOLE BUNCH
OF DIFFERENT. COMMERCIAL REAL
ESTATE GROUPS INCLUDING THE
INTERNATIONAL COUNCIL OF
SHOPPING CENTERS THE BUILDING
OWNERS AND MANAGERS ASSOCIATION
OF CALIFORNIANS SEVERAL OTHERS.
I LOVE TO FOLLOW MISTER WOLF
BECAUSE HE USUALLY SAYS THINGS
VERY SUCCINCTLY THAT WE AGREE
WITH SO WE'D LIKE TO ENDORSE I'M
MISTER WOLFE TESTIMONY. BUT
WOULD LIKE TO POINT OUT THAT
THIS ISN'T ACTUALLY AN ISSUE
THAT WE HAVE BEEN WORKING ON AND
SUPPORTIVE OF FOR OVER TEN YEARS
NOW.
WE SAT AT THIS VERY TABLE THREE
TIMES NOW INCLUDING TODAY AND
WERE SUPPORTIVE OF THE ARMY ON A
BILL WHEN HE TRIED TO DO THIS A
WHILE BACK.
THE LABEL THAT.
COMMERCIAL PROPERTY OWNERS ARE
TRYING TO GAME THE SYSTEM TO THE
EXCHANGE OF OWNERSHIPS WE
BELIEVE HPPENS MUCH. MORE RARE
THAN THEY ONCE. WERE PUT OUT
THERE IS HAPPENING BUT WE DO
BELIEVE THAT THERE IS AN
AMBIGUITY THAT NEEDS TO BE FIXED
IN THIS BILL DOES THAT. IT HURTS
MY MEMBERS WHEN THE PERCEPTION
THAT'S OUT THERE THAT PROPERTY
OWNERS ARE.
DOING ACROBATICS TO GET OUT OF
BEING REASSESSED MOST OF THE
COMMERCIAL REAL ESTATE INDUSTRY
IN MOST COMPANIES THAT. THAT
THAT DO COMMERCIAL REAL ESTATE
TRANSACTIONS ON A DAY TO DAY
BASIS ARE NOT TRYING TO DO THAT
AND THOSE COMPANIES THAT THAT
THAT ARE FALLING WITHIN THE SAME
AMBIGUITY.
REFLECT POORLY ON THE REST FOR
INDUSTRY SO WE HOPE YOU'LL
SUPPORT THIS BILL TODAY AND LETS
GET THIS FIXED AND LET'S GET
LOSE MILLIONS OF DOLLARS INTO
THE STATE'S COFFERS THANK YOU
THANK YOU SO MUCH SIR THANK YOU
BOTH FOR BEING HERE LONG CENTER
BATES FOR NOW CAN BE. TURNED
OVER TO THE I BELIEVE THE TAX
CLICK.
WE GOT YOU GOOD MORNING MISTER
CHAIR MEMBERS CAROLING BUT OF
THE CALIFORNIA ASSOCIATION OF
COUNTY TREASURES AND TAX
COLLECTORS THEY LOOK AT THE BILL
AS A MATTER OF FAIRNESS FOR
TAXPAYERS THE DON'T HAVE. FANCY
CPA'S AND TAX ATTORNEYS TICKET
OUT OF PAIN A REASSESSED
PROPERTY TAX IN THE US GRAVITY
THINKING THANK YOU SO MUCH WE'D
LIKE TO BE A WELCOME ANYONE WHO
ELSE IS IN SUPPORT OF THE BILL
PICKETT PLEASE ADVANCE THIS TIME
THE MICROPHONE. GIVES YOU A
PERSON LAST NAME YOUR
ORGANIZATION ANYONE WHO'D LIKE
TO GET SPEAK IN SUPPORT PLEASE
COME FORWARD.
LADIES YEAH WE'RE NOW CALLING
FOR THOSE WHO MAY BE OPPOSE OR
SQUISHY WITH THE BILL IF YOU
COULD PLEASE COME FORWARD.
GOOD WELCOME.
PRIMARY WITNESS ALONG WITH A TO
SECONDARY WITNESSES.
AND AGAIN WE'RE GOING TO ASK
EACH BE ABLE. TO SPEAK FOR TWO
MINUTES.
YEAH YEAH WHEN I SIGNED.
WHEN WE GET WHO LIKE TO BE OF
THE FIRST WELL ALRIGHT CLEANING
AYE MR GOLDBERG IF YOU DON'T
MIND INTERVIEWS HERE SEVEN
ORGANIZATION OF TWO MINUTES SIR
AND WE WELCOME YOU COMMITTEE
LENNY GOLDBERG CALIFORNIA TAXI
FORMER ASSOCIATION IT'S A
PLEASURE TO BE BACK BEFORE THIS
COMMITTEE IF YOU SEE. ME AFTER
BEING HERE MANY YEARS.
THIS BILL FAILS TO DO WHAT IT
DIDN'T AND CBO AND LET ME GIVE A
LITTLE HISTORY HERE WE YEAH THE
AND AND AND LET ME BE THE FIRST
TO ACKNOWLEDGE THE. ANALYSIS
EACH GETS TO A LOT OF THE
HISTORY IN BOTH THE NINETEEN
NINETIES AND IN THE TWO
THOUSANDS
WE TOOK ON THE ISSUE OF
REFORMING. A A VERY MESSED UP
SYSTEM WHICH IS LOOPHOLE RIDDEN.
THE TO THE CONTRARY OF THE
PREVIOUS TESTIMONY PAYS
SHAREHOLDERS AND PARTNERS CHANGE
OWNERSHIP ALL THE TIME OF MANY
YOU KNOW MAJORITIES OF THE
PROPERTIES CHANGE OWNERSHIP
WITHOUT A REASSESSMENT IS JUST.
IT'S NOT MANIPULATION IT'S THE
NATURAL FAILURE OF A SYSTEM SO
WE INTRODUCED LEGISLATION WHICH
SAID CUMULATIVE CHANGE OF
OWNERSHIP FIFTY PERCENT.
OVER FIFTY PERCENT WHICH IS THE
LONG HISTORICAL STANDARD AND
INCLUDING REBUTTABLE PRESUMPTION
ON SHARES OF STOCK SO THAT
COMPANIES LIKE CHEVRON HAVE NOT-BEEN REASSESSED FOR FORTY YEARS
NOW.
SO SHOULD THEY NOT BE REASSESSED
FOR FIFTY YEARS FOR SIXTEEN
YEARS THAT NEEDS TO BE ADDRESSED
THE BUSINESS COMMUNITY REJECTED
THAT OUT OF HAND THEY ALSO
REJECTED EVEN THE SMALL CHANGE
THAT WE PUT IN IN THE ARMY ON A
BILL. THEY CALLED IT SPLIT ROLE
WHEN WE SAID A HUNDRED PERCENT
CHANGE OF OWNERSHIP IS A CHANGE
OF OWNERSHIP NOW IS THE PERSON
RESPONSIBLE FOR GETTING SOME OF
THIS DISCUSSION STARTED. I WOULD
SAY WE KNEW THAT THAT DIDN'T DO
VERY MUCH IT HARDLY DO ANYTHING
AT ALL DID ANYTHING AT ALL THE
INTENTION WAS.
STARTED DISCUSSION ABOUT THE
ISSUE AND THEN THE LEGISLATURE
THE ASSEMBLY PROPOSE THAT ASK
FORCE LET'S GO BACK TO THE
ORIGINAL TASK FORCE AND SEE HOW
WELL THIS IS WORKING. AND WE
SAID LET'S PUT THAT IN THE
BUSINESS COMMUNITY SAID THAT'S
WHAT ROLE AND WHAT THIS TELLS
YOU. IS THAT ANY REAL SERIOUS
DISCUSSION OTHER THAN THIS BILL
WHICH IS JUST GLOSSES OVER THE
PROBLEM ENTIRELY AS HERE
ANALYSIS POINTED OUT ANY SERIOUS
REAL DISCUSSION HAS BEEN OPPOSED.
CONSISTENTLY BY THE BUSINESS
COMMUNITY SO IF IT NOW I IF WE
ACTUALLY DID THE FULL REFORM OF
CHANGE OF OWNERSHIP IT WOULD
STILL BE VERY PROBLEMATIC AND
VERY PROBLEMATIC BECAUSE WHAT IT
SAYS IS. THE PROPERTY TAX IS NOT
BASED ON THE VALUE OF THE
PROPERTY BUT IT'S BASED ON THE
CAPITAL STRUCTURE OF THE COMPANY
THAT SAID THEN WE HAVE KNOWING
THAT IT IS ON REFORM MOBILE AND
COMPLETELY BROKEN AND LOOPHOLE
RIDDEN. WE HAVE DEVELOPED A
MOVEMENT TO CHANGE IT AND ARE
GATHERING SIGNATURES FOR THE
BALLOT AND I HAVE HAD THIS
DISCUSSION ME AND MISTER CHAIR
WE URGE YOU TO AND WE'VE HAD
THIS DISCUSSION IN THE PAST
LET'S OPEN UP THIS DISCUSSION.
LET US HAVE A BROAD BASED
DISCUSSION OF HOW COMMERCIAL
PROPERTY IS TREATED IN
CALIFORNIA AND IT MAY BE THAT
OUR SOLUTION THERE ARE OTHER
WAYS OF LOOKING AT IT BUT THE
LEGISLATURE HAS TO TAKE THEM.
TAKE THIS ON SO I WANT TO
CONGRATULATE. SENATOR BATES FOR
OPENING THE ISSUE BUT THIS BILL
GETS NO WHERE IN TERMS OF
DEALING WITH THE PROBLEM THANK
YOU SO MUCH SCHOOL BERGEN AGAIN
WE'RE GRATEFUL YOU'RE HERE GOOD
MORNING MA'AM THANK YOU SO MUCH
BEGIN PLEASE INTRODUCE YOURSELF.
I'M GOOD MORNING MISTER CHAIRMAN
BECAUSE OF THE COMMITTEE MY NAME
IS VERONICA COUNTY SALAS AND I'M
HERE REPRESENTING THE SCHOOL THE
COMMITTEE'S FIRST COALITION AND
CALIFORNIA BECAUSE. IN
OPPOSITION TO THE SENATE BILL
TWELVE THIRTY SEVEN.
THE SCHOOL THE COMMITTEE'S FIRST
COALITION IS A STATEWIDE
COALITION THE REPRESENTS OVER
EIGHTY ORGANIZATIONS INCLUDING
COMMUNITY BASED. ALSO JUSTICE
ORGANIZATIONS FAITH BASED GROUPS
SENIORS CIVIL RIGHTS
ORGANIZATIONS AND LABOR UNIONS.
WE URGE YOU TO A BOOK TO OPPOSE
S. B. TWELVE THIRTY SEVEN. S. B.
TWELVE THIRTY SEVEN IS AN
ACKNOWLEDGEMENT THAT OUR CURRENT
SYSTEM IS BROKEN. THIS BILL IS A
FALSE ATTEMPT TO CLOSE THE
LOOPHOLES IN OUR CURRENT TO
DOUBLE RIDERSHIP LAWS BUT
INSTEAD OF CLOSING THE LOOPHOLES
IT ACTUALLY MAKES IT EASIER FOR
CORPORATIONS. TO AVOID PAYING
THEIR FAIR SHARE IN PROPERTY
TAXES.
CHANGING THE THRESHOLD PERTAINED
OF OWNERSHIP FROM FIFTY TO
NINETY PERCENT IS FEW TILE.
SINCE CORPORATIONS ARE SO ADEPT
AT COMPLEX TAX MANEUVERS THAT
ALLOWED TO ESCAPE THE INTENT OF
THE LAW THAT THEY WILL CONTINUE
TO AVOID REASSESSMENT. S. B.
TWELVE TO BESEVEN PUT INTO
STATUTE ONE OF THE BIGGEST
LOOPHOLES THE EXEMPTION A
PUBLICLY TRADED CORPORATIONS
FROM REASSESSMENT AS A RESULT OF
CHANGING STOCK OWNERSHIP. THE
PROBLEMS THAT WERE CREATED BY
PROP THIRTEEN ARE FORTY YEARS IN
THE MAKING. WE HAVE LARGE
CORPORATIONS AND WEALTHY
COMMERCIAL PROPERTY INVESTORS
ARE USING LOOPHOLES IN THE LAW
TO AVOID PAYING THEIR FAIR SHARE.
WE HAVE COMMERCIAL PROPERTIES
THAT ARE SO OUT OF WHACK WITH
THE ACTUAL MARKET VALUE THAT
WHAT HAS BEEN CREATED IS A CRAZY
PATCHWORK OF ASSESSMENT AND.
ACROSS THE STATE. WE HAVE A
LARGE MULTIBILLION DOLLAR
CORPORATIONS THAT ACTUALLY HAVE
A COMPETITIVE ADVANTAGE OVER
SMALLER START UP SIMPLY BASED ON
WHEN A PROPERTY WAS PURCHASED.
THIS BILL DOES NOTHING TO
ADDRESS THIS INEQUITY AND THE
FUNDAMENTAL PROBLEM OF LONG HELD
PROPERTIES THAT HAVE BENEFITTED
FROM PROPOSITION THIRTEEN. AND
ARE STILL PAIN OUTDATED AND
UNFAIR TAXES BASED ON PROPERTY
VALUES FROM THE NINETEEN
SEVENTIES AND EIGHTIES.
AS A RESULT CALIFORNIA LOSES
ELEVEN BILLION DOLLARS WITH THE
BE BILLION DOLLARS ANNUALLY A
CRITICALLY NEEDED REVENUES FOR
SCHOOLS AND LOCAL SERVICES BY
NOT REASSESSING COMMERCIAL AND
INDUSTRIAL PROPERTIES AT FAIR
MARKET VALUE. S. B. TWELVE
THIRTY SEVEN IS NOT AN ATTEMPT
TO FIX THESE PROBLEMS BUT AN
EFFORT TO DERAIL THE SCHOOLS AND
COMMUNITIES FIRST BALLOT MEASURE.
BOND SCHOOL THE COMMITTEE'S
FIRST SUBMITTED BALLOT LANGUAGE
IN THE FALL FOR A CONSTITUTIONAL
AMENDMENT TO REFORM THE
COMMERCIAL PROPERTY SIDE OF
PROPOSITION THIRTEEN. BY
REASSESSING COMMERCIAL
INDUSTRIAL PROPERTIES UP THEIR
MARKET VALUE. IF PASSED IT WOULD
RAISE ELEVEN BILLION DOLLARS
ANNUALLY FOR SCHOOLS COMMUNITY
COLLEGES AND OTHER VITAL
COMMUNITY SERVICES THIRTY
SECONDS WE NEED REAL SOLUTIONS
BY COMPREHENSIVE REFORM OF THAT
RAISES CRITICALLY NEEDED
REVENUES FOR SCHOOL THE LOCAL
COMMUNITIES. FOR THIS REASON WE
URGE YOU TO OPPOSE S. B. TWELVE
THIRTY SEVEN THANK YOU SO MUCH
BREAKER PUT YOUR HERE. WE'RE NOT
GONNA OPEN UP FOR THOSE WHO MAY
BE IN SUPPORT IF YOU CAN JUST
PLEASE STATE YOUR FIRST AND LAST
NAME AND YOUR ORGANIZATION
PLEASE.
I I'M SORRY IN OPPOSITION I
APOLOGIZE I DON'T SEE SHOULD.
NOT NOT IN SUPPORT. HI MY NAME'S
DOOR ROSE I'M DEPUTY DIRECTOR OF
THE LEAGUE OF WOMEN VOTERS OF
CALIFORNIA THANK YOU FOR THE
OPPORTUNITY TO TESTIFY IN STRONG
OPPOSITION TO A.
AS SPEECH TWELVE THIRTY SEVEN.
I HAD MY COLLEAGUES ON A IT IN
OUR COALITION HAVE ALREADY GIVEN
YOU DETAILS AS TO SPECIFICALLY
WHY THIS IS NOT GOING TO WORK TO
CLOSE THAT. CORPORATE LOOPHOLE
IN TO. RESOLVE THE FOR A
FUNDAMENTAL FLAW IN PROP
THIRTEEN.
.
SO WHAT I WANT TO TALK ABOUT IT
IS WHAT THE LEAGUE HAS DONE
HISTORICALLY SINCE THE INCEPTION
OF PROP THIRTEEN TO TRY TO
FIGURE OUT WAYS TO REALLY
RESOLVE THE FUNDAMENTAL IT
EQUITIES OF OF THAT THAT.
PROPOSITION HAS HAS BROUGHT.
WHAT WE BELIEVE IS ACT
CALIFORNIANS DESERVE A BETTER
DEAL A BETTER PROPERTY TAX
SYSTEM THAT'S NOT GONNA TAKE A A
SMALL PERCENTAGE OF REALLY
PRIVILEGED CORPORATIONS? AND
GIVES THEM THE OPPORTUNITY TO
ESSENTIALLY BE FREE LOADERS TO
PACK THEM THEIR POCKETS WITH
BILLIONS AND NOT PUT MONEY BACK
INTO INFRASTRUCTURE BACK INTO
SERVICES. BACK INTO THE
COMMUNITIES THAT THEY ARE
RELYING ON OTHERS TO MAKE THOSE
BILLIONS IN THE FIRST PLACE.
AND WE THINK THAT THE ESSENTIAL
THE MOST IMPORTANT THING.
A FUNDAMENTAL FIX FOR THIS IS A
A.
CONSTITUTIONAL.
AMENDMENTS AND WE'VE BEEN
WORKING ON THAT OUR LEAGUE
MEMBERS HAVE BLANKETED OF THE
STATE GETTING SIGNATURES AND WE
ARE MORE THAN HALF WAY THERE
DIFFERS SIGNATURES TO GET THIS
ON THE BALLOT FOR THE OF
NOVEMBER OF TWENTY TWENTY.
WE BELIEVE THAT WHAT'S HAPPENING
HERE IS THAT THE BUSINESS
COMMUNITY IS FEELING THE HEAT.
REALIZING THAT WE'RE GETTING
CLOSE TO A REALLY PERMANENT
CHECKS ON THIS
AND THAT THEY HAVE INTRODUCED A
SP TWELVE THIRTY SEVEN IS REALLY.
SORT OF TRANSPARENT RUSE TO BE
ABLE TO.
.
STOP OR MOMENTUM MOVING FORWARD
WITH THIS PERMANENT FIX. IF
AFTER FORTY YEARS LAWMAKERS
REALLY FEEL LIKE THERE'S A
VIABLE LEGISLATIVE ALTERNATIVE
HERE THAT WE CAN REALLY DO
SOMETHING ABOUT THIS.
AS OF LENNY WAS SAYING WE GOT
OPENED IT UP TO PUBLIC DISCOURSE
TO REALLY MEANINGFUL COMMUNITY
ENGAGEMENT TO.
HEARINGS TO HAVING EVERYBODY
FLESH OUT THESE ISSUES SORRY.
THE SECOND.
FOR EACH OF THESE ISSUES OF ALL
ON THE TABLE WE NEED TO BRING
EVERYBODY TOGETHER TO TO RESOLVE
THOSE.
PERMANENTLY. SP TWELVE THIRTY
SEVEN IS NOT A SOLUTION TO THIS
PROBLEM IN FACT WE BELIEVE THAT
IT'S A POISON PILL.
THE LEAGUE OF WOMEN VOTERS OF
CALIFORNIA DOES NOT SUPPORT
POISON PILLS IT DOESN'T SUPPORT
SP TWELVE THIRTY SEVEN AND WE
URGE YOU TO VOTE AGAINST IT IF
YOU SO MUCH THANK YOU OKAY
PERFECT TESTIMONY. WHEN OUT IS
CAN ASK FOLKS TO BE A TO PROVIDE
THEIR FIRST AND LAST NAME THE
ORGANIZATION IN THEIR POSITION
ON THE BILL SIR WE WELCOME YOU
AND THANK YOU FOR BEING HERE.
CHAIRMAN MCGUIRE.
DAVID.
LADIES GENTLEMAN. PROPOSITION
EIGHT. ABA MY NAME IS JEFF
TARGET HERE I AM HERE TO
ABDICATE FOR THE CALIFORNIA
ALLIANCE OF RETIRED AMERICANS.
TOO LITTLE TOO MUCH.
THIS IS NOT THE BILL.
OPPOSITION THANK YOU SO MUCH AND
THANK YOU FOR BEING HERE CERTAIN
REPRESENT ORGANIZATIONS GOOD TO
SEE YOU.
WE'RE NOW GOING TO WELCOME
ANYONE ELSE WOULD LIKE TO BE TO
SPEAK IN SUPPORT IF YOU COULD
GIVE US YOUR. CASH WHY DO I KEEP
SAYING SUPPORT I AM SO SORRY I
NEED HAVE SMALL IT HERE I
APOLOGIZE IN OPPOSITION.
.
IT'S BATES IS VERY SIDES ARE
GOLDBERG'S BUT THROW CHEERED ME
SO AS IT EVER GO.
A POLICE IN THE FLOOR IS YOURS I
APOLOGIZE TO THESE ISLANDS OUT
OF IT WITH A NASA PROJECT
CALIFORNIA IN STRONG OPPOSITION
TO THE BILL FOR MANY REASONS
STATED. BENQ THOSE IN OPPOSITION
GOOD MORNING HIM.
GOES OUT AND DOES WHAT TRUE LOVE
THE COALITION FOR HUMANE
IMMIGRANT RIGHTS AND WE STRONGLY
OPPOSE THANK YOU SO MUCH WARNING
HIM. OR ANYTHING JULIE SNYDER
REPRESENTING HOUSING CALIFORNIA.
ON THE EXECUTIVE COMMITTEE OF
THE SCHOOLS AND COMMUNITIES
FIRST INITIATIVE AND WE ARE
UNFORTUNATELY OPPOSED THANK YOU
FOR BEING HERE. GOOD MORNING SIR.
THANK YOU MISTER CHAIR AND
MEMBERS TRISTEN ROUND OF THE
CALIFORNIA FEDERATION OF
TEACHERS ALSO IN STRONG
OPPOSITION THANK YOU GOOD TO SEE
YOU GOOD MORNING SIR. CLINICS
CALIFORNIANS TO DISABILITY
RIGHTS.
OPPOSE GOOD TO SEE YOU THINK YOU
SO MUCH.
ANYONE ELSE WHO WOULD LIKE TO BE
ABLE TO PROVIDE TESTIMONY HO
ARE OPPOSE IT PLEASE COME FOR
ANYONE WHO WERE OPPOSED.
LAST CALL.
IT'S BRING IT BACK TO COMMITTEE
FOR QUESTIONS OR COMMENTS WOULD
LIKE TO BE DECEIVED BY SHARES IN
QUESTIONS OR COMMENTS AT THIS
TIME.
AND AND SO WE DO HAVE A MOTION
ON THE FLOOR WITH A MOTION BY. A
SINNER WINNER VICE CHAIR WHICH
DID YOU PASS APPROPRIATIONS JUST
A FEW QUICK COMMENTS THAT I
DEBATE TURNED OVER TO LEADER
BATES. BOUGHT FOR HER CLOSING
COMMENTS
FIRST I WANT TO SAY THANK YOU TO
GET SENATOR UP FOR TAKING TIME.
AND A LOT OF ENERGY ON THIS
VERY DIFFICULT ISSUE. AS WE CAN
SEE. THERE.
THERE IS NO EASY FIX
BUT AND WE. REALLY DO APPRECIATE
ALL HER WORK ON THIS.
WE DID SUGGESTS.
AN AMENDMENT THAT WOULD
PRESERVE THE HEART OF THE BILL.
AND HELP BUT MAY AND HELP MAKE
REAL AND WHAT WE BELIEVE GENUINE
PROGRESS TOWARDS CLOSING
LOOPHOLES. OP BUT THAT WERE
UNDER THE UNDERSTANDING THAT IT-WAS NOT ACCEPTABLE TO THE OFFICE.
THE AND WE BELIEVE THAT THE BILL
LEAVES TOO MUCH FLEXIBILITY FOR.
SOPHISTICATED TAXPAYERS POSE.
WHO ARE QUITE WEALTHY AYE AND
OR THEIR ADVOCATES?
TO AVOID REASSESSMENTS IF THEY
CAN AFFORD COMPETENT TAX
ATTORNEYS.
WHICH IS WHY WILL BE
RECOMMENDING A NO VOTE TODAY AND
IT IS AT. WITH NO DISRESPECT
TO MATTER LEADER AYE AS SHE IS
AN INCREDIBLE CHAMPION UP FOR
HER DISTRICT IN THE STATE.
BUT UNABLE TO SUPPORT IT HAVE
BEEN DO APPRECIATE YOUR WORK AND
THE CONVERSATION ABOUT A LEADER
WOULD LIKE DE OFFER YOU CLOSING
COMMENTS THOUGH.
THANK YOU US ENERGY MCGUIRE OF
JUSTIN RESPECTFUL DISAGREEMENT
WITH SAW SOME OF THOSE FLY IN
OPPOSITION. ODD DECIDED TO
CORRECTION THIS FLAW IN THE
INTERPRETATION OF OWNERSHIP HA
HAS BEEN AN ONGOING EFFORT OVER
MANY YEARS SO TO SUGGEST THAT IS.
SPECIFICALLY DESIGNED TO PUT A
POISON PILL BEFORE THOSE WHO
WERE LEGITIMATELY OUT WITH THE
PETITION OUGHT TO CHANGE.
PROP THIRTEEN ARE WITH THEIR
OWN REASONS AND PASSION AND I IS
REALLY A MESS.
BOB I THINK INFORMATION ABOUT
THIS PARTICULAR BAILEY CAN ALSO
BE VERY MUCH A PART OF. THE
DISCUSSION NOT AS INITIATIVE
COMES FORWARD TO HIS IT'S A WAY
TO FIX IT ALSO.
SO OFTEN THAT WITH HAVING SAID
THAT. I DO BELIEVE MA THAT THIS
BILL IS A PROTECTION FOR THE
LITTLE GUY THE PEOPLE WHO RENTS
PROPERTY LEASED PROPERTY TO RUN
THEIR SMALL BUSINESSES. WHICH
HAPPEN TO BE THE ECONOMIC ENGINE
OF THIS STATE IN THE NATION AND
THEY WILL BE HOW THE SLICK
SIGNIFICANT IMPACT HALL WITH
WHAT COULD BE PROPOSED IN TERMS
OF ARE REASSESSING COMMERCIAL
PROPERTY. AND I WANT TO PUT THAT
OUT THERE TO THE OPPOSITION TO
TAKE NOTE OF THAT AS THEY GO
FORWARD WITH THEIR IDEAS. AND
WE'RE HEARING THAT OUT FROM THE
THOUSANDS OF SMALL BUSINESS
OWNERS WHO ARE CONTEMPLATING ARE
SOMETHING THAT WOULD RESTRUCTURE
AND REASSESS COMMERCIAL
PROPERTIES THAT THEY RUN THEIR
BUSINESSES OUT OF BUT DO NOT OWN.
BECAUSE THOSE ARE ALWAYS SOUGHT
PASSED ON TO BECAUSE THE
BUSINESS OWNERS SENT TO OTHER
RESEARCH RENTERS ALSO IN TERMS
OF STOCK OWNERSHIP.
BECAUSE THIS IS AN INCOME OF
THAT MANY OF OUR.
FOLKS WHO LIVE ON OUR SENIORS
AND TO SUGGEST THAT EVERYTIME LA
A LARGE PORTION OF STOCK IN A
COMMERCIAL. LA BUSINESS CHANGES
BOB BEYOND OUR THAT AFFECTS THE
VALUE OF THAT STOCK IN THE IN
THE COST OF THE PURCHASE OF THAT
STOCK ESPECIALLY THOSE THAT
PROVIDE DIVIDENDS. IS SOMETHING
I THINKS HAVE SHOULD BE VERY
VERY CAREFULLY APPROACH THAT
COULD BE A HUGE HIT.
THE PEOPLE WHO LIVE ON THAT KIND
OF INCOME AND SO THOSE ARE
THINGS THAT ARE YOU KNOW PART OF
THIS DISCUSSION THAT PERHAPS
NEEDS A MORE IN DEPTH
STAKEHOLDER ROUND TABLE.
WHATEVER.
THIS SOME LEADERSHIP AND OUR
STATE LEGISLATURE CAN FALL
REQUIRE AND JOHN INITIATE THAT
WOULD BE VERY HELPFUL BEFORE WE
TAKE WHAT I CONSIDER TO BE. A
VERY AYE DANGEROUS STEP FORWARD
AND SOMETHING THAT IS REALLY
MADE OWNERSHIP OF PROPERTY BOTH
RESIDENTIAL AND COMMERCIAL HA
HELP THIS NATION IN THE STATE
DRIVE. SO WITHOUT SOLEMN DAHLE
ASK FOR IT AYE VOTE. AND TO HOLD
THAT GOING FORWARD WE CAN
CONTINUE DISCUSSIONS SOMETHING
THAT IS A NEGATIVE AND A
POSITIVE. LA ACROSS THIS TO AND
SOMETHING THAT I'M NOT NOW WOULD
NEVER DISPUTE THAT WE NEED TO
TAKE A. LONGER DEEPER DIVE INTO
HOW WE CAN STRUCTURE IT SO THAT
THERE'S FAIR ENOUGH ON BOTH
SIDES.
THANK YOU THANK YOU SO MUCH FOR
ADAM LEADER THAT WE DO HAVE A
MOTION BY THE VICE CHAIR VICE
CHAIR WYNN WHICH IS A DO PASSED
YOU APPROPRIATIONS.
BUT MISS OUT LANE CHESTER ROLL
CALL VOTE PLEASE WIRED NOW
REQUIRE NO WIN. WIN AYE. BELL.
HERNANDEZ.
HERTZBERG.
LARA.
MOORE LA.
THAT CURTAIN ENJOYS AB ONE ONE
WAY BUT ONE ONE VOTE ON THE
FLOOR AND KEEP THE ROLE OPEN AND
I MET LEADER WE WILL AT
FOLKS ON AS THEY COME BACK TO
COMMITTEE. SO THANK YOU SO MUCH
AND SHOOTING. A MINUTE LATER
THANK YOU SO MUCH.
BUT MEMBERS ARE NOW GONNA BE
MOVING ON TO BUDGET ITEMS ONE
INTO AYE SENATOR GAINES CENTER
GAINES WE FIRST.
PRESENTING SENATE BILL NINE
NINE FIVE.
RELATED TO PERSONAL INCOME TAXES
AND STANDARD DEDUCTIONS EVEN
WILL BE PRESENTING A S. B. NINE
NINE SIX.
OUR. FOCUS ON BASE RATES ARE
CORPORATION TAXES THESE WILL BE
PRESENTATION ONLY WE WILL NOT BE
TAKEN VOTES BUT WE'RE GOING TO
TURN THE FLOOR OVER TO SENATOR
GAINES. SENATE GAINS ITS GIVE IT
I JUST A FEW THIS GIVEN THIRTY
SECONDS ALLOW FOLKS WOULD EMPTY
LOT HEARING ROOM AND WILL TURN
IT OVER TO YOU.
TENER GAINS THE FLOORS SHORES TO
BE A PRISON SENATE BILL NINE
NINE FIVE AND WE WELCOME YOU
BACK SIR TWO WEEKS IN A ROW IT'S
GOOD TO SEE YOU. THANK YOU VERY
MUCH I CHAIR MCGUIRE AND.
.
I WAS SICK MEMBERS BUT NOT
SEEING ANY OF THE MEMBERS BUT
THANK YOU FOR THIS OPPORTUNITY
TO PRESENT THIS BILL.
AND.
.
THIS IS SENATE BILL NINE NINE
SIX AND IT'S A SIMPLE MEASURE AT
SIX TO EIGHT CALIFORNIANS AT A
TIME WHEN.
JOB OPPORTUNITIES ARE LEAVING
THE STATE SPECIFICALLY THE BILL
WOULD DECREASE THE INCOME TAX
THAT AN EMPLOYER WOULD HAVE TO
PAY FROM EIGHT POINT EIGHT FOUR
PERCENT.
TWO SIX POINT EIGHT FOUR PERCENT
THAT WOULD BRING THE RATE IN
LINE WITH THE STATE OF NEW YORK.
CURRENTLY CALIFORNIA HAS THE
EIGHT HIGHEST
TAX IN THE COUNTRY.
COMBINED WITH SOME ONEROUS
REGULATIONS WHICH MAKE IT
DIFFICULT TO KEEP BUSINESS HERE
AND CLAIM CALIFORNIA'S.
WE DEFINITELY WANT TO WORK HOW
THIS REDUCTION WOULD ONLY DROP
CALIFORNIA TO THE TWENTY FIFTH
HIGHEST INCOME TAX RATE IN THE
NATION.
THIS BILL DOES NOT IMPACT THE
STATE'S MINIMUM TAX THE
FRANCHISE TAX BOARD THE
ALTERNATIVE MINIMUM TAX.
ONLY TRADITIONAL CORPORATIONS
ANALYSES ELECTED TO BE TREATED
AS CORPORATIONS ARE CURRENTLY
SUBJECT.
TO STATE INCOME TAX OF EIGHT
POINT EIGHT FOUR PERCENT.
GOV NET INCOME DERIVED FROM
BUSINESS TRANS ACTED. IN
CALIFORNIA BETWEEN.
TWO THOUSAND SEVEN AND TWO
THOUSAND FIFTEEN APPROXIMATELY
NINE THOUSAND COMPANIES LOVE
CALIFORNIA.
AND WHAT'S A MOVE THEIR TYPICAL
SAVINGS.
.
WHAT'S A MOVE THE TYPICAL
SAVINGS RAN BETWEEN TWENTY AND
THIRTY FIVE PERCENT PER YEAR.
IN OPERATING COSTS AT A TIME
WHEN BUSINESSES ARE FACING
GROWING COST FACTORS IN OUR
BUDGET.
FROM OFFICE.
AND NAY FACTIONS DAYS TO
COMPLIANCE COSTS IS REGULATORY
OVERSIGHT. THAT FROM HEALTHCARE
TO NEW TECHNOLOGY BUSINESSES
NEED SOME REVENUE TO INCREASE.
IN THEIR EMPLOYEES INVEST IN
THEIR EMPLOYEES.
IN HAVE THE FLEXIBILITY TO GROW
CALIFORNIA WHAT'S GOLD STATE
FOR INNOVATION IN JOB GROWTH
EDUCATION INFRASTRUCTURE. NEEDS
TO SHAKE OFF THE REPUTATION THAT
IS GAINED IN RECENT YEARS.
AS BEING ONE OF THE WORST STATES
FOR BUSINESS.
CALIFORNIANS NEED JOBS THEY NEED
BUSINESSES WHO ARE NOT AFRAID.
A PAIR APPROPRIATE WAGE MEMBERS
THIS BILL HAS NO OPPOSITION AND
I RESPECTFULLY ASK.
FOR THIS OPPORTUNITY TO MAKE A
PRESENTATION THANK YOU SO MUCH
AS CENTER GAINES A I A AND WE
ARE SENATE NEEDS GIVEN A SUTTER
TOES YEAH HE IS ON SENATE BILL
NINE NINE SIX.
I'M SO WE'RE GOING TO ASK FOR
THOSE WHO ARE AYE IN SUPPORT OF
NINE NINE SIX
CHAIRMAN WHO WOULD LIKE TO BE A
KICK* OFF AYE YOU HAVE TWO
MINUTES. SERVE YOU I DON'T MIND
A GIVEN ISSUE FOR SOME LASSEN
ORGANIZATION TO BE REALLY TOUGH
GIVE TWO MINUTES ARE WE WELCOME
YOU COMMITTEE.
I THINK TO THE CHAIR AND THE
COMMITTEE AND TO SENATOR GAINES
AYE MANY MISTER WELCOME
REPRESENTING THE CALIFORNIA
MANUFACTURERS AND TECHNOLOGY
ASSOCIATION.
BUT WE ARE STRONG SUPPORT OF SB
NINE NINE SIX UP FROM OUR
PERSPECTIVE TAX POLICY IS
ECONOMIC GROWTH POLICY. A
CALIFORNIA HAS RECENTLY MOVED
FROM THE SIX MARS ACADEMY IN THE
WORLD TO THE FIFTH LARGEST
ECONOMY IN THE WORLD AND IT'S
IMPORTANT THAT WE HAVE A TAX
POLICY THAT ALLOWS OUR
MANUFACTURERS TO STAY
COMPETITIVE. AS THEY ARE
COMPETING. AGAINST
COMPETITORS FROM NOT JUST.
DIFFERENT STATES BUT.
FROM DIFFERENT COUNTRIES.
.
THE CHANGE TO THE CORPORATE TAX
RATE IN THIS BILL IS ABOUT TWO
PERCENT IT BRINGS US IN LINE
WITH OUR.
MOST.
COMPETITIVE PEER STATES NEW
YORK'S CORPORATE TAX RATE OF SIX
POINT SIX POINT FIVE PERCENT
FLORIDA'S FIVE POINT FIVE
PERCENT IN TEXAS HAS NO
CORPORATE TAX RATE AT ALL.
THIS IS A SMALL REDUCTION IN
CALIFORNIA'S IN THE V. CORPORATE
TAX FOR THE CALIFORNIA IT TAKES
IN BUT THAT RELIEF THAT IT WOULD
PROVIDE REPRESENTS A HUGE
SAVINGS FOR A CAPITAL INTENSIVE
INDUSTRIES LIKE MANUFACTURING
THAT ALLOW THEM TO EXPAND THEIR
FACILITIES. HIGHER KEY STAFF
MEMBERS A PURSUE NEW VENTURES OR
CONDUCT OF IMPORTANT.
RESEARCH AND DEVELOPMENT.
THROUGH.
A REDUCTION SUCH AS THIS IS VERY
IMPORTANT IN ATTRACTING NEW
INVESTMENT CALIFORNIA THAT WILL
EXPAND OUR OVERALL TAX BASE.
HE SWITCHES TO COOK IT HAS EVER
BEST MISS RICE'S WELL MCGINNIS
AT WHAT CONCERT YOU CAN DESCRIBE
YOUR FIRST LASSEN ORGANIZATION
TAKE YOU PRETENDING WELCOME
COMMITTEE.
GOOD MORNING MISTER CHAIR AND
MEMBERS JOHN LEWIS ON BEHALF OF
THE NATIONAL FEDERATION OF IN
BUSINESS REPRESENTING OVER
TWENTY THOUSAND SMALL BUSINESS
OWNERS WOULD ECHO THE COMMENTS
OF THE SCENE T. A BUT ALSO ADD
THAT. WE BELIEVE THAT TAX POLICY
SHOULD BE A REFLECTION OF OUR
PRIORITIES IN THE STATE AND IF
WE CAN PROVIDE.
TAX BREAKS CONSIDERATIONS TO
THINGS LIKE BIG SOLAR BIG MOTION
PICTURE WE SHOULD BE ABLE TO
PROVIDE THIS TAX RELIEF TO OUR
BIGGEST MOST PROLIFIC JOB
CREATORS IN THE STATE. I'M SO I
THINK SENATOR GAINES FOR
INTRODUCING THIS AND I HOPE TO
CONTINUE CONVERSATION GOING
FORWARD THANK YOU ABSOLUTELY
WRAPS IT WE ARE COMMITTED TO
THAT. THAT WE'D LIKE TO BE A TO
INVITE ANYONE ELSE WOULD LIKE TO
BE TO SPEAK IN SUPPORT OF THE
BILL. WELCOME SIR WE'RE GLAD
YOU'RE HERE MISTER CHAIRMAN WAS
MATTHEW HARPER THE CALIFORNIA
BUSINESS PROPERTIES ASSOCIATION
WE CAN'T MOVE OUR BUILDINGS SO
WE'RE HOPING TO RETAIN. A
BUSINESSES HERE AND BRING MORE
TO THE STATE THANK YOU THANK YOU
SO MUCH.
WOULD LIKELY TO SEE ANYONE ELSE
WOULD LIKELY TO SPEAK IN SUPPORT
OF THE BILL IF YOU COULD PLEASE
ADVANCE THE MICROPHONE THIS TIME.
NO ALRIGHT MISTER OF THE ARMY.
NOW.
YEAH IT'S ALL GOOD.
HE NOTED ARE YOU'RE GOOD YOU'RE
GOOD ANYONE OUT IN SUPPORT.
ARE I WOULD THAT CAN NOW BE TO
SEE IF ANYONE THAT WOULD LIKE TO
BE A TO SPEAK IN OPPOSITION.
WE'RE GONNA MAKE ROOM FOR
OPPOSITION IF YOU DON'T MIND
GENTLEMAN.
THANK YOU SO MUCH.
THANK YOU.
FAMILY LET ME TO COMMITTEE IS
ALWAYS GOOD MORNING TO YOU.
THANK YOU FOR BEING HERE.
I DON'T GOOD MORNING DANIELLE
KENDO KAISER ON BEHALF OF THE
CALIFORNIA TAX REFORMS AS USUAL
AND.
WE ARE RESPECTFULLY IN
OPPOSITION OF S. B. NINE NINE
SIX.
WHICH WE FEEL WOULD REDUCE
CORPORATE TAXES TO THE DETRIMENT
OF CALIFORNIANS ALL OVER THE
STATE. STUDIES HAVE CONSISTENTLY
SHOWN THAT REDUCING CORPORATE
TAXES HAS LITTLE TO NO IMPACT ON
EMPLOYMENT OR ECONOMIC GROWTH.
CONVERSELY HOWEVER THE COSTS OF
SUCH AN EFFORT IS OVER TWO
BILLION DOLLARS.
PER YEAR FOR THE NEXT THREE
YEARS MORE THAN THE CURRENT
BUDGET SURPLUS IN THIS YEAR
ALONE. HAS BEEN NINE NINE SIX
IT'S AT THE STATE UP FOR
ECONOMIC UNCERTAINTY. IN THE
YEARS AHEAD WITH NO PUBLIC
POLICY IMPACT WE ARE RICHER NOW
VOTE THANK YOU THANK YOU SO MUCH
GOOD TO SEE YOU WOULD LIKELY TO
SEE ANYONE ELSE WHO MAY BE
OPPOSE. IF YOU COULD PLEASE
ADVANCE THE MICROPHONE AT THIS
TIME ANYONE AS OPPOSED TO PLEASE
ADVANCE THE MICROPHONE.
LAST CALL FOR THOSE WHO ARE
OPPOSED.
THAT'S BRING IT ON BACK AT TO
COMMITTEE.
BUT SOONER GAINES WOULD YOU LIKE
HAVE A CLOSING COMMENT. YES.
FIRST WHAT LIKE THANK YOU FOR
THE OPPORTUNITY PRESENT THIS AND
THAT. I THINK IT SERVES AS A.
AN OPPORTUNITY TO EXAMINE
HA TAXES IN THE STATE OF
CALIFORNIA. INTERVIEW WHERE IT'S
REVENUE GONNA COME FROM AND I
GUESS DEPENDING ON HOW YOU LOOK
AT IT.
CAN YOU ACTUALLY INCREASE
REVENUE BY.
I SING IN THIS CASE CORPORATE
TAXES CAN YOU DRAW ENOUGH NEW
BUSINESSES. TO CALIFORNIA
BECAUSE IT HAS A MORE FAT
FAVORABLE TAX RATE.
CERTAINLY WE'VE SEEN A LOT OF
BUSINESS IN CALIFORNIA GO.
TO NEVADA.
OR TO THE STATE OF TEXAS THAT
DOES NOT HAVE.
A.
.
ANY INCOME TAX SO.
I'M JUST LOOKING FOR
OPPORTUNITIES I THINK WE HAVE
HUGE CHALLENGES IN FRONT OF US.
EVEN BASED ON THE LATEST MAY
REVISE BUT PENSION OBLIGATION IS
NOW OUT THREE HUNDRED BILLION
DOLLARS.
AND WE'VE GOT TO FIGURE OUT HOW
TO INCREASE REVENUE I THINK.
IT'S VERY SIMILAR TO THIS.
NOT THAT I'M A PROMOTE
PROPONENT OF LEGALIZATION OF
MARIJUANA BUT.
THAT WHAT WE'RE SEEING IS THE
BLACK MARKET IS INCREASING AS
RESULT OF. RATES BEING TAX RATES
BEING TOO HIGH.
ALL SITE COLORADO AS AN EXAMPLE.
WHERE THEY TACK SHE HAD TO GO
BACK AND REEVALUATE TAX RATES?
TO MAKE SURE THAT.
THEY'RE.
NOT GOING TO A BLACK MARKET. I
THINK IN THE END THE
CALIFORNIA'S CASE YOU WOULD
SUCCEED A MOVEMENT OF THOSE
PARTICULAR JOBS OUT OF THE STATE
OF CALIFORNIA. HOUSE SO.
BELIEVE THAT WE HAVE A THREAT
FROM CHINA AND THAT THEY'RE
COMING UP. AND RISING VERY
QUICKLY TRYING TO EXCEED
AMERICAN TERMS OF TECHNOLOGY.
AND THAT WE COULD BE CHALLENGED
WITH THE SILICON VALLEY.
IN THE FUTURE AS RESULT OF A
RISING CHINA IN TECHNOLOGY
AND THAT WE HAVE TO BE PREPARED
AND PROVIDE. AS MANY INCENTIVES
AS WE CAN.
FOR GROWTH AND JOB CREATION
CALIFORNIA.
SO THANK YOU DON'T THINK IS
RIGHT CENTER GAINES US
INTERVENES AND I ARE GOING TO
CONTINUE TO HAVE INCOME STATIONS
ON THIS IMPORTANT ISSUE. BUT AS
WE MOVE FORWARD IN GRATEFUL I WE
HAD COUSIN. ADDITIONAL BILLS
FROM CENTER GAINES IT THAT WERE
ADVANCE THAT LAST WEEK AND IT'S
GOING TO SAY THANK YOU SO MUCH
FOR ALL YOUR WORK ON THOSE AS
WELL. CENTER GAINES WHY DON'T WE.
MOVE TOWARD SENATE BILL NINE
NINE FIVE.
BUT IF THAT WORKS FOR YOU STOP
FOCUSING A PERSONAL INCOME TAXES
IN IN PARTICULAR STANDARD
DEDUCTION.
AND SO CENTER GAINES OF FLOOR
SHORES ON SENATE BILL NINE NINE
FIVE THANK YOU VERY MUCH I CHAIR
MCGUIRE.
I PERCENT FOR YOUR
CONSIDERATION SENATE BILL NINE
NINE FIVE.
THIS IS A SIMPLE MEASURE THAT
SEEKS TO A CALIFORNIA TAXPAYERS
IN THIS TIME. OF THE COST OF
LIVING IN THE GOLDEN STATE IS
SKYROCKETING.
THE BILL WOULD ADD AN
INCREMENTAL INCREASE TO THE
STANDARD PERSONAL DEDUCTION FOR
EVERY TAXPAYER. ENABLING PEOPLE
TO HAVE JUST A LITTLE MORE
DISPOSABLE INCOME TO TAKE CARE
OF THE NECESSITIES OF LIFE.
IT'S TYPICALLY THE BILL WOULD
INCREASE THE DEDUCTION BY
FIFTEEN HUNDRED HOURS FOR SINGLE
FILERS AND BY THREE THOUSAND
DOLLARS FOR MARRIED.
FILING JOINTLY NEARLY TWENTY TWO
PERCENT OF CALIFORNIANS.
ARE REPORTED TO BE AT OR BELOW
THE POVERTY LEVEL IT IS. THESE
PEOPLE.
AND NOT THE INSTITUTIONS OF
GOVERNMENT THAT NEEDS THE MONEY
THAT THEY HAVE EARNED. WHAT MY
BILL WILL NOT SOLVE THIS POVERTY
PROBLEM IT MAY HELP A FEW
INDIVIDUALS AND FAMILIES FROM
FALLING? INTO A DEEPER FINANCIAL
SITUATION. BY INCREASING THE
STANDARD DEDUCTION AMOUNTS IN
CALIFORNIA INCREASING THE
PERCENTAGE OF FILERS.
CLAIM THE STANDARD DEDUCTION THE
STATE WOULD ACCOMPLISH MULTIPLE
DESIRABLE. POLICY OUTCOMES
BEYOND THOSE ALREADY MENTIONED
IT WOULD LOWER THE TAX BURDEN ON
FILERS WHO CURRENTLY USES
STANDARD DEDUCTION AND WHO WOULD
CONTINUE TO USE THAT DEDUCTION.
IT WOULD ALSO LOWER ERROR RATES
AND TAX FILINGS. LOWER
COMPLIANCE COSTS.
THAT TIME FOR TAX FILERS AND
LOWER PROCESSING IMPERSONAL
YEARS PERSONNEL YEARS REQUIRED
BY FD DE THE PROCESS TAX FILINGS.
MEMBERS THIS BILL HAS NO
OPPOSITION.
AND WE'RE NOT UP FOR A VOTE
IT'S SIMPLY A PROPER.
I.
.
PRESENTATION THANK YOU THANK YOU
SO MUCH CENTER GAINES WITH THAT
TO BETTER TURN OVER THE MAN THE
MYTH THE LEGEND AYE MR WOLF.
THROUGH THE FLOOR IS YOURS
MISTER CHAIRMAN AND MISTER
HERTZBERG THANK YOU VERY MUCH
GOOD MORNING MEMBERS DAVID WILL
FOR THE HOWARD JARVIS TAXPAYERS
ASSOCIATION. IN SUPPORT OF SB
NINE NINE FIVE HERE TODAY.
MEMBERS REVIEW THIS INCREASE IN
THE STANDARD DEDUCTION AS
BASICALLY CONFORMITY WITH
FEDERAL TAX REFORM THAT WAS
APPROVED LAST YEAR BY CONGRESS.
THERE'S NO DENYING MEMBERS THAT
CALIFORNIA HAS A TWENTY PERCENT
POVERTY RATE RIGHT NOW HIGHEST
IN THE NATION BY FAR IN THE
STATE OF CALIFORNIA. AND THIS
HAS A DRAMATIC IMPACT ON AVERAGE
MIDDLE CLASS CALIFORNIA
TAXPAYERS UP AND DOWN THE STATE.
LESS THAN ONE THIRD OF
CALIFORNIANS SPEND AT LEAST HALF
OF THEIR TAKE HOME PAY RIGHT NOW
ON RAN.
ONE THIRD OF INDIVIDUALS ONLY
ONE THIRD CAN AFFORD A MEDIAN
PRICED HOME IN THE STATE OF
CALIFORNIA WHICH IS FIVE HUNDRED
AND SIXTY THOUSAND DOLLARS. THIS
INCREASE IN THE STANDARD
DEDUCTION PUTS IMMEDIATE DOLLARS
BACK IN THE TAXPAYERS AB AVERAGE
MIDDLE CLASS CALIFORNIANS. AND
IT DOES AS MISTER GAINES MENTION
MAKE COMPLIANCE SIMPLER FOR A
LARGE MAJORITY OF CALIFORNIANS
THOSE MAKING EIGHTY THOUSAND
DOLLARS OR LESS AGAIN WE WOULD
ARGUE THOSE THE BENEFIT MOST
FROM THE FEDERAL TAX REFORM. ARE
LIABLE NOT ITEMIZING LIABLE TO
TAKE THE STANDARD DEDUCTION
SIR I THINK FROM A TAX
COMPLIANCE ISSUE AS WELL AS JUST
TO PROMOTE SAVINGS TO AVERAGE
CALIFORNIANS A STOMACH SOUGHT A
SENSE ASK FOR AN ITEM. FAR IT
BEGINS PRESENTATION ONLY THERE
IS NO VOTE BUT WE LIKE THE BILL.
THANK YOU SO MUCH RITUAL OF VERY
GRATEFUL.
WITH ACTIVITY NOW SEE THERE'S
ANYONE ELSE IN SUPPORT OF THE
BILL SAY COULD PLEASE ADVANCE AT
THIS TIME ANYONE ELSE IN SUPPORT
OF THE BILL THE PLEASE ADVANCE
AT THIS TIME.
BUT IS GENERALLY NOW WOULD LIKE
TO BETTER TURN IT OVER TO THOSE
WHO MAY BE OPPOSED IF YOU COULD
PLEASE COME FORWARD WE ALREADY
HAVE OUR MAIN PRIMARY HERE.
PLEASE MA'AM. COULD MORNING
AGAIN DANIELLE COUNTER BECAUSE
OUR ON BEHALF OF CALIFORNIA TAX
REFORM ASSOCIATION WITH ALL DUE
RESPECT.
WE OPPOSE THE MEASURE WE IT
WOULD COST THE GENERAL FUND OVER
A BILLION DOLLARS IN YEAR ONE
ALONE.
AND TAKING AWAY VITAL SERVICES
FOR ALL CALIFORNIANS SO WE ARE
ADJOURNED I'VE NO VOTE THANK YOU
EXERTION YOU KNOW GRATEFUL BUT
ACCURACY ANYONE ELSE WHO MAY BE
OPPOSED IF YOU COULD PLEASE
COMPORT THIS TIME ANYONE IS.
ANYONE ELSE WHO'S OPPOSED TO
PLEASE ADVANCE.
LAST CALL.
LET'S BRING IT BACK TO
COMMITTEE TO BE RECEIVED WE HAVE.
IN THE AYE DISCUSSION OR
OTHERWISE AND AGAIN WE ARE NOT
TAKING A VOTE ON THIS BILL
TODAY'S FREEZING TUITION ONLY.
WHAT I'D BE ASSUMING DISCUSSION
OR DEBATE?
LET'S TURN IT OVER TO CENTER
GAINES FOR CLOSING COMMENTS AND
AGAIN AND SORTS THINK IT'S IN
OUR GAINES AYE FOR ALL OF HIS
WORK ON BOTH OF THESE ISSUES.
CENTER GAINES THAT THANK YOU
VERY MUCH.
CHAIRMAN MCGUIRE FIRST
OPPORTUNITY TO MAKE A
PRESENTATION THEN.
PERHAPS ADVANCE.
DEBATE AND DISCUSSION IN THE
FUTURE ABOUT TAX POLICY.
IN CALIFORNIA AND HOW WE MEET
OUR OBLIGATIONS AND ALSO HAVE A
THRIVING.
ECONOMY WITH WITH GROWTH AND
RISING INCOMES THAT.
CAN HELP REDUCE THE POVERTY RATE
THE CITY CALIFORNIA AND BRING
PEOPLE UP TO THE MIDDLE CLASS
AND BEYOND.
THANK YOU SO MUCH THANK YOU
SENATE GAINES AND TRULY DO LOOK
FOR TO HAVE BEEN A CONTINUE
CONVERSATIONS WITH YOU AS WELL
AS ON SENATE BILL NINE NINE SIX
THANK YOU SO MUCH CENTER IN
THANK YOU THANK YOU SO MUCH.
THEY THE GENTLEMAN I WOULD LIKE
TO BETTER LAY OUT.
A BRIEF AGENDA FOR THE REST OF
THE MORNING AND INTO THE
AFTERNOON.
WE ARE GOING TO HAVE A VERY.
TEACHING HERE IN JUST A FEW
SECONDS
WE'RE THEN GOING TO TAKE A QUICK
RECESS A ABOUT FIVE TO TEN
MINUTES.
WHERE THEY GONNA RECONVENE?
INTO OUR SPECIAL ORDER HEARING
WHICH.
WILL BE ON SENATE BILL NINE
NINE THIRTY IN SENATOR HERTZBERG.
BUT I BEFORE WE TAKE OUR BRIEF
RECESS WE LIKED IT A WELCOME UP.
A REAL GENTLEMAN HERE WHO HAS
LEFT THE SENATE BY IN LEFT TO
COMMITTEE AND HAS LEFT US IN A
LURCH.
BUT.
WE WANT TO SAY HOW GRATEFUL WE
ARE TO HIS COMMITMENT TO THE
PEOPLE OF CALIFORNIA OF COURSE
TO THIS ISSUE OF GOVERNANCE AND
FINANCE WE'D LIKE TO HAVE JIMMY
JIMMY MACDONALD TO BE A TO COME
FORWARD.
YOU KNOW I DIDN'T MCDONALD IS
THE FORMER CONSULTANT I HEAR IT
SOONER GOVERNMENT'S VINES FOCUS
ON ALL ISSUES OF LOCAL
GOVERNMENT. UP PRIOR TO HIS TIME
IN THE SENATE HE AT WORK ON
BEHALF OF MILLIONS WHO ARE
SERVED BY THE AYE SPECIAL
DISTRICTS HERE IN CALIFORNIA. BY
IN ABOUT A COUPLE MONTHS AGO AYE
JIMMY AYE CAME DOWN TO THE FLOOR
AND SAID I'M.
SOME BAD NEWS AND DROPPED THE
BOMB THAT HE'S GOING OVER TO THE
ASSEMBLY. TIED TO BETTER SERVE
AS THEIR LOCAL GOVERNMENT
CONSULTANT
I AND I GOTTA SAY IT WAS A HUGE
LOSS
BUT. WE WANT TO TAKE A MOMENT TO
BETTER RECOGNIZE HIM THAT JIMMY
IS NOT ONLY SMART. HE'S
HARDWORKING GUY AND HE ALWAYS
PUTS THE PEOPLE THE NEEDS OF THE
PEOPLE FIRST THOUGHT HE IS
INCREDIBLY ARTICULATE. HE SPENDS
TIMEON HIS ANALYSIS.
IN HOW ANY POTENTIAL
LEGISLATION WHAT IMPACT THOSE
THAT NEED THE STATE'S HELP THE
MOST AND WE JUST WANTED TO BE TO
TAKE A MOMENT TO SAY THANK YOU
TO JIMMY.
AS WE LIKE TO ONE IN PARIS BUT
INTO I RECOGNIZE THOSE WHO HAVE
DONE SUCH GREAT WORK HERE IN THE
CITY IN SPECIALLY ON BEHALF OF
THE COMMITTEE. WHERE AND I
HAVEN'T SAFE YOU WORDS IN JUST A
MOMENT BUT BEFORE WE DO THINK
THERE TURN IT OVER TO THE FRMER
I CHAIRED THIS COMMITTEE AND
SENATOR HERTZBERG?
THANK YOU MISTER CHAIRMAN IS
SOMEONE WHO HAD THE DISTINCT
PLEASURE OF SERVING AS CHAIR OF
THIS COMMITTEE. AND
UNDERSTANDING THE OFTEN COMPLEX
BOTH POLITICAL LEGAL. AND.
.
SITUATIONAL IF YOU WILL
EXCEPTIONS I USED TO SOFT TO SO
MUCH OF A LAUGH CHO BILL I
UNDERSTAND THEM WE WE VOTED WHY
IT. GOT SO SCREWED UP AFTER THE
THIRTY FIVE YEARS CA
SUBCOMMITTEE OF EXCEPTIONS.
AND ALL THE CHALLENGES THAT WE
FACE I I JUST CAN'T THANK YOU
ENOUGH FOR YOUR SERVICE BUT TO
US.
TIME STORY HAD THE WORK WAS
CERTAINLY A OTHER STAFF MEMBERS
WHO WERE AND ARE NOT UP TO YOUR
STANDARDS BUT. BECOME JOKING.
BUT BUT YOU DID YOU JUST YOU
GREAT JOB WE REALLY REALLY
APPRECIATE AYE I WAS LIKE WIENER
ANALYSIS AND.
YOU ARE HELD IN HIGH HONOR BY
THOSE WHO RUN THIS PLACE AYE AND.
WE REALLY APPRECIATED AND DOUG.
WE EXPECT A THAT DEEPENED
DEDICATED LOYALTY TO THE SENATE.
SO THAT WHEN YOU GO TO THE
ASSEMBLY AND WE DID INFORMATION.
BUT YOU WHERE OUR TATTOOS.
IN OUR A SPOT FOR US ON ALL
ISSUES IMPORTANT TO THE CHAIR
HAD YOU NOT JUST TELL ME WITH
THAT.
I STAY Q. AND THAT WILL KEEP
WORKING THANK YOU SO MUCH THANK
YOU SO MUCH THAT WE ALSO LIKE TO
BE TO TURN OVER AYE TO OUR CHIEF
CONSULTANTOF THE COMMITTEE. I
AND AT CONGRESS HELD TO BE A
SAFE YOU WORDS ABOUT MISTER
MACDONALD MISTER NOW.
WELL A GUY COULD SCARCELY HAD
THE ABBOTT AND BEHALF OF THE
ENTIRE STAFF OF THE GOVERNANCE
AND FINANCE COMMITTEE I CAN'T
SAY WHAT A PLEASURE IT WAS TO
WORK WITH.
JAMIE MACDONALD FOR THAT FOR
THE TIME THAT HE WAS WITH THE
COMMITTEE.
HE'S A HARD WORKING DILIGENT
AND INSIGHTFUL CREATIVE AND WOOD
LITERALLY TAKE ON ANY TASK THAT
THAT WAS EVER ASKED OF HIM.
HE'S.
A BIG LOSS TO THE OFFICE BUT.
YOU KNOW IN THIS SPIN IN THE
LEGISLATURE WHEN A GOOD PERSON
LEAVES FOR A FOR A A GREAT PLACE
YOU CAN'T BE SAD YOU JUST CAN'T.
FIND THE NEXT PERSON UP IN AND
GET ON WITH THINGS.
BUT I REALLY WANT TO THANK
JIMMY.
FURS FRIENDSHIP AND FOR HIS
EXCELLENT SERVICE AND I REALLY
LOOK FORWARD TO WORKING FOR WITH
YOU.
IN THE FUTURE.
SO THAT WE HAVE A SPECIAL TOKEN
OF OUR APPRECIATION BUT WE'D
LIKE TO BE TO TURN IT OVER TO
MISTER MACDONALD FIRST TO BE A
TO SAY FEW WORDS AND AGAIN YOU
MEET IS NOT BEEN THE SAME
WITHOUT YOU AND. TRULY YOU ARE
AT A PLACE SHOULD TO BE A TO
WORK WITH SO WITH MCDONNELL.
WELL HOPEFULLY FOR THE BETTER.
BUT I KNOW I DESERVE ALL OF
THIS HEY THERE YOU ARE. PARIS
MEANT GO.
AYE AYE IT WASN'T AN EASY TIME
TO LEAVE BUT.
.
YOU HAVE A GREAT TEAM. WORKING
FOR AND I AM SURE THEY CAN
HANDLE ANYTHING BUT I'M. I I
MISS YOU GUYS SOON.
SOCIALLY WORKING FOR YOU SIR
AND.
.
I DIDN'T GO FAR SO I'LL BE
AROUND.
SO YEAH JIMMY IS A.
A CONNOISSEUR OF ADULT
BEVERAGES.
IN.
IN
IN MODERATE AMOUNTS BY THE WAY.
.
JIMMY WE WANTED TO SEE IF YOU
WANTED TO TELL YOUR STORY ABOUT
THE.
BECAUSE OF FOR A BASEBALL GAME
THAT YEAR AT.
NO FOOTBALL GAME PLEASE THAT
WOULD. I DON'T NINE OKAY.
SO.
IF IF A VERY GOOD AS MINE FOR
THE REST OF THE DAY OR THE WEEK
THAT WE SEE JIMMY ASK ABOUT THE
FOOTBALL GAME AND SEE WHAT
HAPPENED WITH HIS.
INCREDIBLE FIGHT WITH A CHAIR.
AND I WAS LIKE THAT NO A CHAIR.
THE GENIE THEY EACH YEAR.
BUT I JIMMY THANK YOU.
AND WE WANT TO BE A PRISON TO
OF COURSE SOME AYE DRY CREEK
VALLEY CINEMA CAN YOU OLD VINE
ZINFANDEL FOR YOU.
A AND I JUST SAY THANK YOU SO
MUCH FOR ALL OF YOUR SERVICE AND
YOUR HARD WORK AND I THINK WE
NEED TO GIVE A ROUND OF APPLAUSE
TO JIMMY DOT
.
MY GOD BILLS. GO BACK. VOTE.
THANK YOU SO MUCH FOR ALLOWING
US TO BE A TO BRING FORGIVENESS
MCDONALD THAT LAYS AND JOHN WERE
GONNA TAKE ABOUT A TEN MINUTE
RECESS
WHERE THEY GONNA RECONVENE INTO
OUR SPECIAL ORDER HEARING.
APPRECIATE YOUR PATIENCE IN WILL
BE RIGHT BACK WITH YOU IN
YOU SO MUCH
THAT RECESS.
BUT WE GOT TO GO TO TAKE CARE OF
SOME HOUSEKEEPING IF IT WORKS
FOR FOLKS IS. THAT WE HAVE A
SLEW OF BUDGET COMMITTEES THAT
ARE TAKING PLACE TODAY.
AND.
ALSO COMMITTEES
SO WHAT WE TAKE TO BE TO DO IS
ADD ON TO THE PREVIOUS BILLS
THAT WE TOOK ACTION ON HIGH IN
EARLIER MORNING EDITION OF THE
COMMITTEE. THEN MORE INTO A
SECOND AD ON AFTER CENTER
HERTZBERG.
PRESENTATION IS WELL SO WE ARE
WE DID PRESENTATION ONLY ON ITEM
NUMBER ONE INTO SENATE BILL NINE
NINE FIVE
IN NINETEEN NINETY SIX.
WE'D LIKE TO BE ABLE TO ADD ON
TO SENATE BILL TWELVE THIRTY
SEVEN THIS IS A DOUCHE PASSED TO
APPROPRIATIONS THAT CURRENTLY
ENJOYS A ONE ONE VOTE WITH THE
CHAIR VOTING NO MISS LANE
CHESTER ROLL CALL PLEASE. NOW.
DOWN NOW HERNANDEZ HERTZBERG
LARA MORE LOCK. YOU HAVE BUT.
ONE TOO IT CURRENTLY ENJOYS A
ONE TO VOTE FOR GOING TO KEEP
THE BILL.
OPEN IN WILL ADD ON HERE AT THE
END OUR FINAL BILL OF THE DAY.
IS SENATE BILL FOURTEEN EIGHTY
FIVE FROM EARLIER MORNING
SESSION THIS IS A DO PASSED TO
APPROPRIATIONS THE CHAIR VOTING
NO CURRENTLY ENJOYS A ONE TO
VOTE. MISALIGNED CHESTER ROLL
CALL PLEASE.
HERNANDEZ
HERTZBERG LARA MORLOCK ONE TWO
SCALE BUT STILL ENJOYS A ONE TO
VOTE WE'RE GONNA KEEP THAT ROLE
OPEN.
AND TO ADD ON HERE IN JUST A
FEW MOMENTS AFTER SENATOR
HERTZBERG.
SO WHAT I'D LIKE TO BE ABLE TO
DO IS TALK ABOUT OUR PROCESS AND
THE WAY IT'S GOING TO LOOK FOR
AND THIS MORNING IN INTO THIS
AFTERNOON. WE WILL BE HAVING A
PRECIPITATION BY SENATOR
HERTZBERG IN WITNESSES COME IN
THEN WE WILL ALSO HAVE A VERY
SHORT VIDEO PRESENTATION THAT
WILL BE DANCE BY SENATOR
HERTZBERG. WHERE THEY CAN HEAR
FOR?
OPPOSITION OF THE BILL WILL
HAVE ONE PRIMARY WITNESS INTO
SECONDARY WITNESSES THOSE
SECONDARY WITNESSES WILL BE
SPEAKING FOR TWO MINUTES EACH.
I AND I WANT TO ALSO TAKE A
MOMENT TO RECOGNIZE THAT SENATOR
HERTZBERG THAT LOOK THINNER
HERTZBERG IS A FANTASTIC
LEGISLATURE OR. BY IN HE IS
NEVER AFRAID TO TACKLE THE
STATE'S MOST PRESSING CHALLENGES
BUT NO MATTER HOW COMPLICATED OR
CONTROVERSIAL. THE ISSUE MAY BE
AND TODAY WE'RE GOING TO BE
DISCUSSING DISCUSSING ONE OF
THOSE PRESSING ISSUES AND THAT'S
CALIFORNIA'S TAX SYSTEM. THE
SYSTEM IS CERTAINLY COMPLICATED
AND AS YOU CAN TELL BY TODAY'S
TURNOUT IN THE CORRESPONDENCE
THE COMMITTEE IS RESEARCH. ANY
AMENDMENTS ANY AMENDMENTS THAT
ARE ADVANCE TO THE WAY THE STATE
IMPOSES TAXES AND GENERATES
REVENUES ARE CERTAINLY
CONTROVERSIAL.
CENTER HERTZBERG I HAVE SPOKEN A
GREAT DEAL AND I'M GRATEFUL FOR
THOSE CONVERSATIONS ABOUT THE
REFORMS HE WOULD LIKE TO ACHIEVE
AND WHY HE BELIEVES THIS
PROPOSAL. THAT IS IN FRONT OF
THE COMMITTEE IS A MORE FAIR.
EQUITABLE IN STABLE APPROACH TO
TAXATION HERE IN THE GOLDEN
STATE. AND I WANT TO THANK THE
GOOD SENATOR FOR THE DIALOGUE IN
UNDERSTANDING THE COMMITTEE'S
CONCERNS ESPECIALLY WITH THE
COMPLICATIONS OF IMPLEMENTATION
AND TAXPAYER COMPLIANCE POSED BY
THIS BILL IN ITS CURRENT FORM.
TODAY'S HEARING IS A KICK OFF
GOING TO BE KICK OFF TO A SERIES
OF HEARINGS IT WILL BE WORKING
WITH SENATOR HERTZBERG ON.
HE HAS BEEN WORKING ON THIS
ISSUE FOR SEVERAL YEARS AND IT
IS AT HIS SUGGESTION TODAY.
CENTER HERTZBERG SUGGESTION THAT
WILL BE ADVANCING AN EXTENDED
CONVERSATION ABOUT A POTENTIAL
STATE SERVICE TAX A WE WILL NOT
BE TAKING AN ACTUAL VOTE ON THE
BILL TODAY. OUR NEXT HEARING BUT
WILL BE ON JUNE THIRTEENTH.
LOOK AGAIN THIS ISSUE IS
COMPLICATED AND FOLKS HAVE
CONCERNS IT'S AMBITIOUS AND IT'S
IMPORTANT THAT THE CONVERSATION
ADVANCES I LOOK FORWARD. TO
WORKING WITH MY COLLEAGUE AND
FRIEND IN ON AN EXTENDED
CONVERSATION WE'RE GOING TO
INVOLVED ALL VOICES IN THE
PROCESS AND WE BELIEVE IT WILL
GIVE THE PUBLIC AND THOSE
POTENTIALLY IMPACTED BY THE
POLICY. AN OPPORTUNITY TO BE A
PARTICIPATE IN THIS CRITICAL
CONVERSATION CENTER HERTZBERG I
KNOW YOU'VE INVESTED YEARS OF
TIME AND ENERGY ON WHAT IS NOW
SENATE BILL NINETY NINE THREE.
WE WANT TO THANK YOU FOR YOUR
HARD WORK SIR THE FLOOR IS YOURS
IN THAT KICK OFF THAT IMPORTANT
CONVERSATION DOWSON HERTZBERG.
THANK YOU VERY MUCH MISTER CHAIR
THANK YOU DEAR LEAD COUNSEL HERE
YOU'RE. A CONSULTANT MISTER
GRINNELL WHO WORKED FOR ME WHEN
I.
CLEAR THIS COMMITTEE AND IN
THIRD MANY OF THOSE DISCUSSIONS
OVER THE YEARS INVOLVING SERVICE.
AND GAVE ME A LOT OF HIS
THEORIES WHICH I HAVE NOW READ
IN HIS ANALYSIS.
.
YOU KNOW AS AS YOU ALLUDED TO I
SAT IN YOUR CHAIR AS CHAIR OF
THIS COMMITTEE.
A FOR A COUPLE OF YEARS.
AND YOU HEARD ME IN THE STAFF
HEARD ME IN THE MEMBERS HEARD ME
TIME AND TIME AGAIN COMPLAIN
ABOUT.
THE COMMITTEE PROCESS.
THAT. SO OFTEN WE HAVE COMPLEX
MEASURES THAT INVOLVE TENS
BILLION SOMETIMES HUNDREDS OF
BILLIONS OF DOLLARS. AND WE JUST
ACCOMMODATE EACH OTHER AND
UNDERMINE IN MY JUDGMENT THE
IMPORTANCE OF THE LEGISLATURE
WORD IS TO ENGAGE IN THE DEBATE.
TO SCRUB THESE MEASURES IN THE
PRODUCE A PRODUCT THAT DOESN'T
RELY ON THE EXECUTIVE BRANCH BUT
THAT WE CAN PROUDLY TALK ABOUT
WHAT WE DO IN THE WORK THAT WE
DO.
I WOULD.
IN SO IN THAT REGARD IT IS THE
SPIRIT IN WHICH YOU ARE
CORRECTLY. EXPRESSING MISTER
CHAIRMAN. ABOUT HOW THIS SHOULD
BE CONDUCTED IN A MULTIPLE
SERIES OF HEARINGS WHEN WE CAN
CONTINUE BACK AND FORTH WITH
YOUR STAFF WITH YOUR GOOD
OFFICES WITH OUR STAFF. AND WITH
UP. AND OPPONENTS.
TO BEGIN TO LOOK AND ASK THE
HARD QUESTIONS IT IT NEVER TO
GET A GOOD PRODUCT IT TAKES TIME.
YOU KNOW IT TOOK FORTY ONE TIMES
FOR THE CIVIL RIGHTS ACT PASSED
CONGRESS.
THE THE IT IT CERTAINLY IN MY
EXPERIENCE AND THINGS I WORKED
ON WHAT IT WAS TERM LIMITS ARE
FIFTY PERCENT PLUS ONE OF THE
BUDGET OR INITIATIVE OF FORMER.
REDISTRICTING IN THE LIKE THE LA
WORKED ON FOR YEARS AND THAT'S
JUST WHAT IT TAKES AND THAT'S IS
THIS IS ONE OF THESE PROCESSES
AND IS WITH. IT IS WITH THAT
ATTITUDE AND TONE THAT WE
APPROACH IS AND I APPRECIATE
THAT.
ATTITUDE AND THOROUGHNESS OF
FROM THE COMMITTEE WITH ME TODAY
CA AND CERTAINLY I SAID HE CAN
PARTICIPATE ANYWAYS BRAD
WILLIAMS HE IMPLICITLY WAS
BECAME IN THE ALEJO'S OFFICE IN
NINETEEN SEVENTY EIGHT. HE
SERVED AS THE CHIEF ECONOMIST
FROM NINETEEN NINETY FIVE TWO
THOUSAND SEVEN FROM THE ALEJO
AND DIRECTOR OF ECONOMIC AND
FISCAL FORECAST HE'S BEEN
WORKING WITH US ON THIS PROJECT
SINCE TWO THOUSAND ELEVEN.
TOGETHER WITH A GROUP OF OTHER
PEOPE. DOING THE HOMEWORK
DOZENS OF MEETINGS WITH VARIOUS
GOVERNMENT OFFICES AND DRILLING
IN SO WE'RE NOT JUST PRESENTING
SOMETHING THAT'S THE TOP LINE
IDEA AND AND QUITE FRANKLY. AS
WE HAVE DEBATED AND YOU'RE GONNA
SEE TODAY OVER AND OVER AGAIN
ABOUT HOW TO INTRODUCE THIS
ISSUE. FARM IT'S BEEN QUITE
CHALLENGING AND HERE'S WHERE WE
HAVE HOW WE HAVE LANDED.
ME START OUT WITH THAT DIRECTED
IMPORTANT POINT IS.
THAT THIS TALK IS ABOUT THE
UNTOUCHABLES SUBJECT OF TAX
REFORM. THE UNTOUCHABLES SUBJECT
OF TAX REFORM NO ONE WANTS TO
TALK ABOUT IT.
BUT IT FORMS.
THE FOUNDATION OF ALMOST
EVERYTHING THAT WE DO IN
GOVERNMENT.
TAXES.
GIVEN THE TOUGHNESS OF THE
PROJECT I WAS THINKING ABOUT
ADDING IN PENSION REFORM TO THE
PROCESS IS WELL WHAT THE HECK.
WHEN I HAD MY COMPANY IN WALES I
USED TO JOKE WITH MY PARTNER
THAT WE ARE WALKING TO THE MOON
WITH ELEPHANTS ON OUR BACK AND
IT KIND OF FEELS THE SAME WAY.
BUT THE CAUSE IS JUST THAT THE
NEED IS HERE AND.
THIS IS THE PLACE WITH THE BETA
CARS.
SO WHAT IS THE PROBLEM THAT
WE'RE TRYING TO FIX WHAT ARE WE
TRYING TO SOLVE WITH THIS TAX
REFORM PROPOSAL WHERE WE GOING.
I NEED TO INDULGE THE COMMITTEE.
AND THE THIRTY EIGHT MILLION
VIEWERS TODAY WATCHING THIS YEAR
ONLINE.
WITH A BIT OF THE HISTORY AND
THE CONTEXT
OF WHERE WE'RE COMING FROM.
AND.
I THINK THAT WE GET GUIDANCE
FROM THE GOVERNOR'S.
CONSTANT. REMARKS CITY MAKES IT
EVERY.
MAY REVISED THAT WHAT HE JUST
SAID IS MOST RECENT RECENT MAY
REVISE ABOUT. THE VOLATILITY.
IN TWO THOUSAND AND TEN IS A
MEMBER OF THE THINK LONG
COMMITTEE IT GROUP OF
DISTINGUISHED FOLKS PUT TOGETHER
BY NICHOLAS BERG YOU AND I WAS
FORTUNATE TO BE A PART OF IT.
INCLUDE CONDOLEEZZA RICE AND
GEORGE SHULTZ THE FORMER
SECRETARY OF EVERYTHING.
INCLUDED GOVERNOR DAVIS AND
MAYOR BROWN IT INCLUDED ABORT
TYSON THE FORMER CHIEF ECONOMIST.
OF.
THE BUT PRESIDENT CLINTON
STATION CHIEF JUSTICE RON GEORGE
GERRY PARSKY WHO THEN WAS CHAIR
OF THE. BOARD OF REGENTS AND HAD
WORKED ON A PREVIOUS COMMISSION
LOOKING AT A BLUEPRINT OF WHAT
OF THE UNDERLYING ARCHITECTURAL
CHALLENGE THAT WE FACE.
IN CALIFORNIA.
WE LOOKED AT THE INITIATIVE
PROCESS AND SPENT A YEAR AND A
HALF WORKING ON IT CHECK DONE WE
WORKED HEAVILY EARLY ON BEFORE
WE NOW HAVE THIS RAINY DAY FUND
PART OF OUR PLAN. CHECK DON
SEVENTEEN BILLION DOLLARS GOING
TO BE IN A RESERVE PRESUMABLY AS
A RESULT OF THE GOVERNOR'S
PROPOSED BUDGET.
AND ONE OF THE OTHER ISSUES THAT
WE LOOKED AT THAT WAS QUITE
CHALLENGING IS TAX REFORM WHAT
WE DO.
AND WE SAW WE SAW WHAT GOVERNOR
BROWN SAW THAT VOLATILITY HERE
YOU TALKS ABOUT HERE IN THIS
CHART RIGHT HERE BY JUST CALL IT
THE JERRY BROWN CHART. BECAUSE
THAT'S TO CHART HE DREW FOR ME
AT THAT YOU TALKED ABOUT THE
JESUITS THAT USED TO DRAW ON THE
SAME STORY ABOUT THE NATURE OF
ECONOMY IN REAL ESTATE THAT'S
KIND OF.
STARTING IN NINETEEN NINETY
EIGHT IN TERMS OF REVENUES IN
CALIFORNIA I LIVE JUST SPEAKER
OF THE ASSEMBLY THROUGH ONE OF
THE UPS AND I LOOK THROUGH THE
DOWNS.
I CERTAINLY WOULDN'T WANT TO
HAVE TO LISTEN TO DOWN THE
CENTER STEINBERG HAD TO LIVE
THROUGH IT QUITE CHALLENGING.
AND THAT PROCESS IN TERMS OF THE
CONTEXT IS HORRIBLE FOR
CALIFORNIA. IT'S DONNELLY
HORRIBLE FOR THE PEOPLE THAT WE
SERVE WITH ITS CLOSING A
COURTROOM PROVIDING NOT SERVICES
FOR DEVELOPMENTS ABILITIES OUR
SCHOOLS ARE FOSTER KIDS. IT'S
HORRIBLE FOR BUSINESS BECAUSE IT
SENDS AN IMAGE IN A REPUTATION
AROUND THE WORLD THAT I USED TO
TRAVEL WHEN I WAS OUT OF THIS
PLACE. AT THAT YOU KNOW THESE
GREAT BUDGET DELAYS AND WHAT'S
GOING ON CALIFORNIA'S ALWAYS
EASY TO CRITICIZE CALIFORNIA OR
FALL INTO THE OCEAN.
YOU KNOW AND SO IT WAS IMPORTANT
TO BUILD CONFIDENCE IN WHO WE
ARE IN OUR ECONOMY AND ALSO
PROVIDING SERVICES TO PEOPLE
THAT ARE. THE IT'S SO IMPORTANT
TO PROVIDE.
AND SO.
WHICH IS WE SAT ON THE AND IN
BARKING ON THIS WE LOOKED AT IT
WE TALKED EXPERTS WE DID MODELS
AFTER MODELS OF WHAT TO DO WITH
RESPECT TO. THE APPROACH BRAD
WAS ONE OF THOSE EXPERTS TODAY
WE WERE GOING TO APPEAR BY SKYPE
BUT IT COULDN'T HAPPEN LAURA
TYSON WHO SUGGESTED. WITH THE
CHAIR OF THE COUNCIL OF ECONOMIC
ADVISERS.
LONDON SCHOOL AND SITS ON A
NUMBER OF BOARDS IS CURRENTLY IN
BERKELEY.
AND.
HOPEFULLY SHE'LL APPEAR AT
FUTURE.
MEETINGS ARE GOING TO GET SOME
FIVE PIECES THAT SHE WROTE TO
TALK ABOUT THE NOTION. OF TAX
REFORM FOR CALIFORNIA. THAT'S OF
THE FOOT SOLUTION THAT WE CAME
UPON.
WAS A PROGRESSIVELY.
BUT BOY WAITED SERVICE TAX.
AS A RESULT OF OUR EFFORTS.
THAT BASICALLY THE OUTDATED
SYSTEM OF CALIFORNIA AND WE'RE
TRYING TO IS TO MODERNIZE TO GET
RID OF THE VOLATILITY ITS CORE
NO QUESTION.
IT ALSO TO TRY TO ALIGN THE
GROWTH OF THE TO THE STRUCTURE
OF OUR TAXES WITH THE NATURE OF
OUR ECONOMY IN THE NINETEEN
FIFTIES. SALES TAX ON GOODS WERE
ABOUT SIXTY PERCENT NOW IT'S
LESS THAN TWENTY PERCENT. IN THE
NINETEEN FIFTIES PERSONAL INCOME
TAX WAS ABOUT TWELVE PERCENT NOW
IT'S NORTH OF SEVENTY PERCENT.
AND SERVICES TODAY ACCOUNT FOR
NEARLY EIGHTY PERCENT OF THE
ECONOMY.
ANY SYSTEM WHETHER IT'S A
BUSINESS WHATEVER YOU'RE DOING
YOU HAVE TO ALIGN YOUR REVENUE
SOURCE WITH THE NATURE OF WHAT
YOU'RE DOING AND ONE OF THE
REASONS WE HAVE THE CHALLENGE
TODAY. IS BECAUSE THAT'S NOT
HAPPENING WE PUT IN A RAINY DAY
FUND WHICH IS GREAT BUT THE
RAINY DAY FUND IS SIMPLY AND IT
TOOK ME EVIDENCE OF THE FAILURE
OF THE SYSTEM. YOU SHOULDN'T
HAVE THAT LEVEL OF VOLATILITY
THE RAINY DAY FUND HAS ITS OWN
POLITICAL RISKS FOR OF FOR THOSE
WHO ARGUE ON ONE SIDE OF THE
LEDGER WE SHOULD PUT MORE MONEY
INTO SERVICES AND ON THE OTHER
SIDE OF THE LEDGER. ARGUE THAT
WELL WE LIKE WE DID WITH THE DID
MAJOR ADMINISTRATION LET'S GIVE
IT BACK.
CREATE SOME LEVEL POLITICAL
TENSIONS WHICH ISN'T NECESSARY
WHAT WE WANT TO DO IS TO HAVE A
GOVERNMENT THAT GROWS
INTELLIGENTLY INSTEAD EARLY. AND
SO THIS IS THE REASON WHY WE
FELT THAT THE SERVICE TAX WHICH
SO IMPORTANT IF YOU LOOK AT THIS
CHART APPEAR THAT CAME OUT OF
THE LA OWES OFFICE. IT'LL SHOW
YOU QUITE CLEARLY PARDON WHERE
PRICES OF GOODS HAVE GOAL BUT
MORE SLOWLY THAN PRICES OF
SERVICES LOOK AT THOSE NUMBERS
IT'LL GIVE YOU THE NUMBER IT
TELLS A STORY IN THE SIMPLEST
CHART. CREATED BY THE ALEJO'S
OFFICE.
ABOUT THE RATE OF GROWTH IN WHY
YOU'D WANT TO GO TO SERVICES AND
SECONDLY THE REASON WHY YOU WANT
TO GO TO SERVICES IS BECAUSE
IT'S NOT SERVICES ARE EXPORTABLE.
VERY CONSUMED HERE IT REALLY IS
IN ITS FORM A CONSUMPTION TAX.
IN A GLOBALIZED ECONOMY YOU KNOW
WE EAST YOU WE GONNA LOOK AT THE
NUMBERS SENATOR JACKSON TALKS
ABOUT THIS ALL THE TIME ABOUT
WHAT THE RATES USED TO BE IN THE
FIFTIES ENOUGH IN THE FORTIES
AND SIXTIES. EIGHTY NINETY
PERCENT TAX RATES THOSE ARE
IMPOSSIBLE TO MAINTAIN TODAY IN
A GLOBALIZED ECONOMY BECAUSE
LAWYERS AND ACCOUNTANTS AND
EVERYBODY ELSE APPROPRIATELY
CRAIG TAX EFFICIENT ENTITIES FOR
CORPORATIONS OR FOR. INDIVIDUALS
TO MINIMIZE THEIR TAX IT'S JUST
WHAT WHAT WHAT WEALTH DOES IT
IT'S NATURE I DON'T JUDGE IT IT
JUST IS WHAT IT IS.
AND SO.
THE BOTTOM LINE IS WHEN I CAME
IN THE GOVERNMENT THE VERY FIRST
BILL THAT I INTRODUCED WAS
INTENT LANGUAGE IT WAS CALLED S.
B. EIGHT.
IT WAS DECEMBER TWO THOUSAND
FOURTEEN IT IT EVIDENCE THAT HIT
ALL THE WORK THAT WE HAVE BEEN
DOING FOR THE YEARS BEFORE. NOT
WITH ANY CONTEXT AND NOT IN THE
CONTENT
BUT JUST INTENT LANGUAGE FRAMING
OUT THE NOTION THAT THE THAT THE
ECONOMY SHIFTING. THAT WE NEED
TO ALIGN INTERESTS AND WHICH YOU
GO TO A SERVICE ACOSTA SERVICE
TAX.
IT RESULTED IN JUST AN
EXTRAORDINARY AMOUNT OF
OPPOSITION.
HAD NOT A WORD OF STATUTORY
LANGUAGE IN IT.
BUT IT HAD AN IDEA THE POWER OF
IDEAS.
A MEETING WAS CALLED ON THE
FOURTEENTH OF JANUARY IN TWO
THOUSAND FIFTEEN WHICH HAD I'M
GUESSING OVER A HUNDRED BUSINESS
INTERESTS.
A CROSS EXAMINE ME AT LENGTH
ABOUT WHAT THIS MEANT AND HOW IT
AFFECTED THIS AND WHAT WAS YOU
AT THAT MEETING. AND AND.
AT ALL THESE VARIOUS ISSUES AND
COMPLICATED HYPOTHETICALS AND
THE LIKE.
AND ALL I SAID WAS THAT I HAD
THE BRIGHTEST MINDS I COULD FIND
THAT SAID THIS IS THE ROUTE.
I'M OPEN TO ANY IDEA BIG GNOSTIC
I'M TRYING TO MAINTAIN PRO
REGRESSIVITY I'M TRYING TO
REDUCE VOLATILITY AND TRYING TO
ALIGN INTEREST FOR FOR THE
GOVERNMENT MOVING FORWARD TO
MODERNIZE OUR TAX STRUCTURE.
THIS IS WHAT THE ROAD LOOKS LIKE
THERE ARE NOT A LOT OF OTHER
ROADS AND SO I AM BARKED UPON A
THREE YEAR. LISTENING TO OR.
BUT GOING AND TALKING TO
INTERESTS ALL ACROSS THE STATE
IN ALL PARTS OF THE STATE ANY
GROUP THAT WANTED TO TALK WE
LISTENED.
AS A RESULT OF S. B. EIGHT.
SUBSEQUENTLY IN ORDER TO KEEP
THE CONVERSATION GOING INTO
THOUSAND SIXTEEN I INTRODUCED S.
B. FOURTEEN FORTY FIVE AND TWO
THOUSAND SEVENTEEN S. B. SIX
FORTY. BOTH OF WHICH WERE SIMPLY
INTENT LANGUAGE BOTH OF WHICH
SIMPLY TRIED TO DATE TO MOVE THE
DEBATE FORWARD.
IN THOSE MEASURES THAT SERVICE
TAXES MUCH MORE EXPANSIVE ALL
TALK ABOUT THE DIFFERENCES BUT
THE NOTION WAS TO LISTEN.
AND LISTEN I DID.
AND I REALLY TOOK TO HEART ALL
ACROSS THE STATE MARCH COUNTY
FOR THE BAY AREA ALL OVER THE
PLACE. AYE WHAT EVERYONE
EVERYPLACE ANYBODY ASKED WHO
WANTED TO DISCUSS THE ISSUE
AGAIN MY MESSAGE WAS WAS NOT TO
BE.
A BOMBASTIC BUT TO LISTEN AND TO
SAY WE HAVE THIS CHALLENGE HOW
DO YOU FIX IT WHAT'S THE
SOLUTION ARE I DIDN'T GET ANY
SOLUTIONS ALL I GOT IS EXEMPT US
FOR HOW IT AFFECTS US.
WHICH IS BIG CERTAINLY I I DON'T
BEGRUDGE BECAUSE IT'S NOT
INTEREST GROUPS JOBS TO GOVERN
IT'S OUR JOB TO GOVERN AND TO
FIGURE IT OUT AND TO LEAD AND
THAT'S WHAT I WAS TRYING TO DO.
SO THROUGH THIS LONG PROCESS WE
NOW COME TO S. B. NINE NINETY
THREE WHICH IS INTRODUCED THIS
YEAR OF LAST YEAR AND IT WAS A
SEASON WHATEVER IT WAS SESSION.
AGAIN WITH INTENT LANGUAGE.
THAT WAS THE IDEA.
AND IT WAS IN BUT TODAY IS WHAT
WE ARE AND WHAT I'M THINKING
ABOUT IS INFORMED WHILE THE
LESSONS I LEARNED ALONG THE WAY.
AND AGAIN THE FOCUS IS AND THE
REASON WHY I'M BRINGING THIS
BILL TODAY IS AT THE GOVERNOR'S
MAY REVISE HE SAID. THAT WE NEED
TO SET FORTH A FRAMEWORK FOR THE
NEXT GOVERNOR. WE HAVE TO START
THIS DISCUSSION NOW.
WE HAVE BEEN DISCUSSING IT I
WANT TO BRING ITFORTH IN A
FORMAL PROCESS OF THE FORMAL
SENATE COMMITTEE.
WITH THE THE ELEGANCE AND
INTELLIGENCE OF THE STAFF AND
BEGIN THIS BEYOND THE INFORMAL
APPROACH THAT I'VE TAKEN INTO A
MORE FORMAL PROCESS THAT IF WE
COULD HELP DEVELOP THIS INTO
SOMETHING. BECAUSE IT HAD WE
HAVE TO DEAL WITH WITH TAX
REFORM IN ONE FORM OR ANOTHER.
AND I'VE NEVER BEFORE QUOTED DAN
WALTERS AND WE DO SO BECAUSE HE
NOW WORKS FOR THE ESTEEMED CAO
MATTERS CHOI IT LIKE.
AND HE SAID THIS IS A BABY STEP
WE HAVE DRAMATICALLY CHANGED
THIS AND IT IS A BABY STEP.
BUT IT IS INTENDED TO BE.
BUT BUILDING A FRAMEWORK FOR THE
NEXT GOVERNOR.
AND BEFORE I MOVE INTO THE
SPECIFIC DISCUSSIONS I WANT TO
SHOW YOU A BRIEF BUT YOU KNOW
THE ISSUE OF TAX REFORM TALKING
ABOUT THIS IS THE HARDEST THING
IN THE WORLD. I'M JUST TELLING A
PERSONAL LEVEL I DROPPED OUT OF
TAX MY LAST WEEK OF LAW SCHOOL I
HATE THE SUBJECT WITH A PASSION.
I JUST HATE IT BUT I JUST DON'T
FEEL THAT YOU COULD BE
RESPONSIBLE IN THIS JOB IN
PARTICULAR WAS CHAIR OF THIS
COMMITTEE. BY AT AND KNOWLEDGE
BUT NOT ENGAGE WHAT YOU'RE DOING
NOW MISTER CHAIRMAN BY BEING SO
GRACIOUS AND ALLOWING SO MUCH
TIME FOR THIS PRESENTATION.
AND SO.
AND WE'VE GOT TO DEAL WITH THAT
AND I'VE TRYING TO DEVELOP
ACTUALLY DID A A A A WAITED TO
AT LEAST BEGIN THE IDEA OF
IDENTIFYING THE PROCESS AND
IDENTIFYING SERVICES. IN A MORE
EASILY UNDERSTANDABLE WAY
WITHOUT PUTTING PEOPLE TO SLEEP
IT'S TWO MINUTES.
LET'S TALK ABOUT TAXES BUT WAIT
I KNOW WHAT YOU'RE THINKING
TAXES IT'S JUST ANOTHER WAY OF
SAYING THE GOVERNMENT'S GOING TO
TAKE CASH OUT OF YOUR POCKET AND
PUT IT AND THERE'S.
NOT QUITE IN ALL THE THINGS THAT
ARE GREAT ABOUT CALIFORNIA AND
NOT JUST THE OBVIOUS THINGS BUT
THE EVERY DAY ONCE TO LIKE ROADS
SCHOOLS IN OUR WAY OF LIFE. YEAH
ALL BROUGHT TO YOU BY TAXES.
BUT HERE'S THE THING
CALIFORNIA'S TAX STRUCTURE WAS
BUILT IN THE MID TWENTIETH
CENTURY WHILE WE'RE NOW WELL
INTO THE TWENTY FIRST. IT ALL-COMES DOWN TO THIS WE'RE OVERLY
DEPENDENT ON INCOME TAX
EVERYTHING'S GREAT SONG IS
INCOME IS GREAT WHEN INCOME
DROPS IT LIKE YOU DID IN NO
EIGHT. REVENUE DROPS EVEN MORE
THIS ZIGZAG ECONOMY MEANS
INSTABILITY INSTABILITY MEANS
WHILE THE ECONOMY IS UNSTABLE
THAT'S BAD. TO LET'S FIX THE TAX
SERIOUSLY STOP THAT. THERE'S A
THAT MEANS OUR FORM TO TAX
STRUCTURE THAT PROVIDES A TAX
CUT FOR MOST CALIFORNIANS. LOWER
TAXES FOR SMALL BUSINESS AND THE
MIDDLE CLASS.
PROTECTION FOR THE POOR AND A
PLAN TO ADDRESS INCOME
INEQUALITY AND OUR STATE
CORPORATIONS WILL BE FORCED TO
PAY THEIR FAIR SHARE.
HOW?
SIMPLE BY INTRODUCING A TAX ON
SERVICES THE THINGS PEOPLE USE
CALIFORNIA'S ECONOMY WILL BE
BETTER ANCHORED BY A STEADY YEAR
THERE'S ACTUALLY A CHANCE IT'LL
GO UP NOT DOWN. FORM OF REVENUE
IT WORKS LIKE A USER FEES ONLY
THOSE SERVICES PEOPLE CHOOSE TO
USE OUR TAXED AND EVEN BETTER
ARTISTIC CORPORATIONS WHO
BENEFIT FROM CALIFORNIA.
NOW CONTRIBUTE SOME OF THEIR
MONEY.
TO THE STATE
AND THE LOOPHOLES PEOPLE USED TO
AVOID CONTRIBUTING BACK CLOSED.
ó STILL OKAY BUT LET'S NOT DO
ANYTHING AND JUST PUT
POLITICIANS KEEP KICKING THE
PROBLEM AROUND HOPING THAT MAYBE
GENERATIONS TO COME CAN MAYBE
SOMEDAY HANDLE IT FOR. BUT THEY
DON'T ABOUT IT PICK UP THE CAN
ASK THE MOST FORTUNATE AMONG US
TO DO THEIR PART YES BUT THEN
LET'S ALL DO OUR PART BECAUSE A
BETTER ECONOMY MEANS A BETTER
CALIFORNIA. FOR ALL OF US.
THE BILL.
IS ABOUT PICKING UP THE CAN.
IT'S ABOUT PICKING UP THE CAN.
I WANTED TO STRESS THAT IF IT
LOOKED IN TWO THOUSAND EIGHT
BECAUSE THE VOLATILITY ISSUE THE
ECONOMY IN CALIFORNIA WAS DOWN
BY THREE PERCENT AND OUR BUDGET
DROPPED BY TWENTY THREE PERCENT.
ONE NEEDS NOT TO LOOK FARTHER
THAN THAT ISSUE.
SOME OF THE OTHER POINTS ABOUT
THAT THAT ARE IN THOSE EARLIER
VERSION THAN WHERE WE ARE NOW.
BECAUSE WE'VE MADE A
MODIFICATION AGAIN TO START
BUILDING THE FRAMEWORK BUT
MODIFYING IT.
AND SOMETHING HAPPENED AT THE
END OF THIS YEAR THAT
FUNDAMENTALLY CHANGED THINKING
IN CONCERNING TAX.
AND THAT IS THE PASSAGE OF THE
FAT NEW FEDERAL TAX ACT IN ALL
IN WASHINGTON AND ITS DIRECT
ADVERSE AFFECT ON CALIFORNIANS.
ONE A REFERENCE A. DEVOUT
DEPARTMENT OF FINANCE
THE MEMO TALKING ABOUT TO THE
CONGRESSIONAL DELEGATION ABOUT.
THE IMPACT OF THAT FEDERAL TAX
LAW.
NUMBER DRAYS FOUR POINTS THAT
ARE IN THAT MEMO NOW SHOW YOU
LATER.
ONE IT REMOVE THE STATE AND
LOCAL TAX THE SALT DEDUCTIONS
WILL CAPPING PROPERTY TAX
DEDUCTIONS A TEN THOUSAND
DOLLARS.
HERTZ CALIFORNIA CERTAINLY
PROPERTY TAXES IN CALIFORNIA TEN
THOUSAND A VERY DIFFERENT THE
PROPERTY TAXES AND OTHER STATES
THAT HAVE LESS ECONOMIC ACTIVITY.
SECOND ONE FAVORABLE TREATMENT
OF CHILDREN AND FAMILIES BIRD
PRIVATIZATION OF CORPORATIONS
OVER INDIVIDUALS
AND FOURTH MAKES IT HARDER FOR
MIDDLE CLASS FAMILIES TO BUY A
HOME.
AND SO.
YOU TAKE A LOOK.
AT THIS CHART.
AB WHAT THE EFFECT OF THE TRUMP
TAXES.
BEFORE TRUMP AND AFTER TRUMP.
SHE CORPORATIONS
THEY HAVE A THIRTY FIVE PERCENT
TAX RATE THIS ON A TWO HUNDRED
THOUSAND DOLLARS A PROFIT.
NOW THERE TWENTY ONE PERCENT TAX
RATE.
PASS THROUGH ENTITIES MAKING
LESS THAN FIFTY ONE THOUSAND
DOLLARS A YEAR TOP FEDERAL TAX
RATE THIRTY NINE POINT SIX.
TOP AX RATE DROP TO THIRTY
SEVEN PERCENT PLUS A TWENTY
PERCENT EXCLUSION OF INCOME.
SO THE BOTTOM LINE IS AN OPEL
GOODS COMPANIES STATE DO BETTER
I'M NOT TRYING TO. PLAY A CLASS
GAME IN THOSE THINGS I'M JUST
TELLING YOU THAT THESE ARE
CALIFORNIA COMPANIES SO THAT
WHEN WE FRAME THE OPPOSITION
ABOUT TAXES RISING. TO ME THE
UNDERLYING ARCHITECTURE OF THE
IDEA IS NOT WHETHER THE MONEY
GOES TO THE CAN
THE COUNTY OF ORANGE IS THE.
CITY OF READING OR TO THE STATE
OF CALIFORNIA THE FEDERAL
GOVERNMENT WHEN YOU'RE CITIZEN
YOUR PERSON THAT'S TAXPAYER AND
YOU'RE PAYING MONEY. NEIL LOOK
AT WHERE DOES LOOK AT HOW MUCH
GOES HOW MUCH OF MY CHECK TO I
GET ALL THOSE OPTIONS TO COME
OUT IT RUBBED WHAT'S MY NET
NUMBER. AND DON'T WANT TO GET
INVOLVED IN THAT FIGHT ARE MY
ISSUE IS WHAT'S THE IMPACT ON
THE INDIVIDUAL ON THE PERSON ON
THE BUSINESS AND SOMEBODY'S
TRYING TO MAKE A LIVIN. IN
CALIFORNIA AND CAL AND IN WHAT
TRUMP DID. HIS OUGHT
FUNDAMENTALLY CHANGE THE GAME
AND FUNDAMENTALLY CHANGE WERE
OUR COURSE AND OUR OUR COURSE
WITH RESPECT TO THIS TAX PLAN.
AND SO WE THOUGHT WAS HOW COULD
WE ENGAGE HOW COULD WE TAKE OUR
THINKING ABOUT SERVICE TAX
HOW CAN WE TAKE THE THE THE
GUIDANCE FROM THE GOVERNOR ABOUT
STARTING TO SET A FRAMEWORK FOR
DISCUSSION ABOUT THIS. AND MOVE
IT IN THE WAY THAT HAD SOME
INTELLIGENT APPLICATION BEEN
APPLIED THE UNDERLYING
PRINCIPLES AND WHAT WERE THOSE
PRINCIPLES
HE DUCKED ABILITY.
BUSINESSES
SPEND MONEY YOU SPEND MONEY ON
TAXES YOU SPEND MONEY ON OTHER
EXPENSES AND NOW YOU CAN'T
DEDUCT A FEW DEDUCTING THEM LISA
PUTTING THE BURDEN BACK ON TO
THE FEDERAL GOVERNMENT WHICH
THEY TOOK OFF AND PUT IT BACK US
ON THE STATE. SECOND PER GROUP
PRESERVING PROGRESSIVE ATTY ONE
OF THE CHALLENGES THAT WE HAD
AND IT WAS DIFFICULT AND
PROBABLY PAGE THE BILL BUT WE
TOOK IT OUT. WAS THAT WHEN YOU
TAX SERVICES WHICH INCLUDED
IMPACTS ON INDIVIDUALS THE THE
TO MAINTAIN PROGRESSIVITY WE HAD
TO CREATE A FUND A BUFFER FUND
WHEN PEOPLE TALK TO ME INITIALLY
I GUESS GET HIT FROM THE RIGHT
AND THE LEFT. THE THAT THE RIGHT
WAS TONY ATTACKS IN BUSINESS
RAISING TAXES THE LEFT SAYS WE
TALK ABOUT SERVICE TAXES YOU'RE
YOU'RE IT'S REGRESSIVE WHAT WE
TALK WE MADE. THE PROCESS IN THE
EARLIER DRAFTS EQUALLY.
PROGRESSIVE AND WE WANTED TO DO
THAT NOW AND SO THAT WAS A BIG
FACTOR SECONDLY WE WANTED TO
MAKE SURE THAT THE ADVERSE
AFFECT ON FAMILIES THAT'S TALKED
ABOUT WITH RESPECT TO. THE THE
FEDERAL ACTION THE FEDERAL TAX
REFORM ACT USED IT WAS MITIGATED
AND AND SO THE IDEA WHICH WILL
TALK ABOUT THE SECOND OF DUBBED
TAKING DOLLARS THAT. DOLLAR FOR
DOLLAR AND TAKING THAT MONEY AND
REDUCING SALES TAX WE KNOW.
MISTER WE'VE TO TALK ABOUT IT.
ABOUT WHAT THE IMPACT IS ON ON
EVERYDAY PEOPLE WE KNOW FROM OF
A STUDY A SURVEY THAT WAS DONE
BY THE FEDERAL RESERVE THAT
FORTY SIX PERCENT OF AMERICANS
CAN'T AFFORD MORE THAN FOUR
HUNDRED DOLLARS.
IF THEY HAVE TO PONDERED
EMERGENCY IT AFTER BORROW IT OR
SELL SOMETHING.
SO IF AN AVERAGE FAMILY WHICH
WILL SHOW YOU CAN YOU SAY FOUR
HUNDRED DOLLARS A YEAR.
ON THEIR TAX BILL BY REDUCING
THEIR SALES TAX ON GOODS.
THAT SEVENTY THOUSAND DOLLARS
FAMILY OF FOUR WOULD BASICALLY
MODEL THAT YOU'RE TALKING ABOUT
PUT REAL MONEY IN PEOPLE'S
POCKETS
IF YOU ONE OF MINE AUTOMOBILE
AND TOLD BY THE CAR DEALERS THAT.
THE AVERAGE PRICE OF AN
AUTOMOBILE IN CALIFORNIA IS
THIRTY THREE THOUSAND DOLLARS
YOU SAVE OVER SIX HUNDRED
DOLLARS IN THE PURCHASE OF THAT
AUTOMOBILE.
AND SO ISRAEL IMPACTS TO MIDDLE
CLASS PEOPLE AT THE FAMILIES AND
THERE'S SOME IMPACT BUT MISSED
WITH CAN EXPLAIN IN MORE DETAIL
BECAUSE HE LOOKED AT THE
STANDARD DEVIATIONS WITH RESPECT
TO VOLATILITY AND I KNOW PEOPLE
SAY THAT WE'RE NOT SOLVING
VOLATILITY AND THAT IS TRUE
WE'RE NOT SOLVING. IT BUT WE ARE
IMPACTING AT THE MORE IMPACTING
IT BECAUSE.
FROM THESE TAXES ON SERVICES
THAT THE GROWTH RATES FOR IS
BEEN SMALLER FOR BUSINESS
SERVICES AND GOODS THE SHIFT IN
RELIANCE FROM GOODS TOWARD
SERVICES WILL REDUCE THE OVERALL
STANDARD DEVIATION AROUND. THE
AVERAGE GENERAL FUND REVENUES HE
TALK ABOUT THOSE NUMBERS BUT IT
DOES HAVE SOME IMPACT AND WHAT
YOU LEARN IN THE PROCESS OF YOU
LIVE DO YOU DO LEGISLATE BY
INITIATIVE WHERE SOME GROUP
WHATEVER THEY ARE SAYS THIS
ORGAN AND DO. WHAT YOU LEGISLATE
BY LEGISLATIVE BRANCH THAT IS
GOING TO HAVE?
THINK ABOUT THE LONG TERM AND
HOW TO DO WITH THESE THINGS AND
I THINK THAT THIS IS THE PLACE
WHERE WE NEED TO HAVE THAT
DEBATE.
AND SO.
THE THE ANSWER TO THE QUESTION
IS THIS IS NOT THE SAME BILL
IT'S REVENUE NEUTRAL. INITIALLY
I TALKED ABOUT RAISING TEN
BILLION DOLLARS THIS IS REVENUE
NEUTRAL IT'S NOT REALLY IN REAL
TERMS A TAX INCREASE OF ANYTHING
OF IS REVENUE NEUTRAL. BECAUSE
ALL WE'RE DOING IS MODERNIZING
THE COAT WERE SAYING TO PEOPLE
OVER HERE THAT ARE BUSINESSES IN
BUSINESS TO BUSINESS.
BUT THE ACTIVITY THAT THAT THREE
PERCENT WHICH IS A DOCTOR BILL
WHICH WOULD BE TWO POINT
SOMETHING PERCENT AFTER
DEDUCTIONS BECAUSE THE COST OF
DOING BUSINESS FOR THOSE IT'S
THAT PAY AT THE OTHER PEOPLE
JUST HAVE TO COLLECT UNPAID IN.
A WILL BE PAID OVER TO REDUCE
TAXES ON GOODS THAT HELPED EVERY
DAY CALIFORNIANS.
FARM AND SO WHEN YOU LOOK AT THE
AT THE FRAMEWORK OF WHAT THE
OPPOSITION SAID.
THIS LITERALLY THE NOTES THAT I
TOOK FROM THE MEETING IN TWO
THOUSAND JANUARY FOURTEENTH OF
TWO THOUSAND FIFTEEN. AND THE
LETTER WHICH HAS NINETY FOUR
GROUPS
THAT HAVE SIGNED OPPOSITION IS
ALMOST WORD FOR WORD THE SAME.
AND IT EVIDENCES TO ME A NUMBER
OF THINGS ONE IS THAT AND HAVE
TIME TO ANALYZE THIS IN THE
GREATEST DETAIL AFTER HAVING
SOME CONVERSATIONS THAT WAS
CLEAR. TO ONE OF THE REASONS WHY
WE HAVE TO ENGAGE IN THIS
PROCESS.
TO I JUST THINK IT'S EASIER TO
JUST THROW THAT UP WHEN YOU TALK
ABOUT THAT TAX WORD TO BE ABLE
TO MAKE THESE ALLEGATIONS AND I
THINK THAT THROUGH A THIS
THOUGHTFUL PROCESS MISTER CHAIR
WILL BE ABLE TO GET TO THE TRUTH
ABOUT ALL THESE THINGS THE GOOD
THE. BAD THE UGLY WHATEVER IT IS
IF WE MADE MISTAKES WE HAVEN'T
THOUGHT THINGS THROUGH AGAIN
WORD GNOSTIC ON THAT WE'RE
TRYING TO FIX A PROBLEM THAT'S
THE PURPOSE OF THIS ENDEAVOR.
AND SO LET'S TALK LET'S GO
THROUGH WITH THOSE GROUPS SAID
AND WHAT THEY TALKED ABOUT
HERE'S THE BASIC ARGUMENTS THAT
WERE MADE AND HOW WE CORRECTED
THEM. IN THIS MEASURE BOTH IN
TERMS OF THE ARGUMENTS REMAIN
THE LETTER AND WERE MADE BEFORE
BUT THEY'RE NOT CHANGED.
EVERYONE IS WE TOOK OUT THE
PLEASE THE CHALLENGE OF THE VERY
LITTLE BUSINESSES ANYBODY ON
HEARD A HUNDRED THOUSAND DOLLARS
IN ALICE'S MENTIONS THIS ARE
EXEMPT FROM EVEN COMPLYING IN
ANY RESPECT.
IF YOU'RE A BARBER APPLY THESE
INSTRUCTOR OF LITTLE LEAGUE
COACH.
YOU DON'T HAVE TO WORRY ABOUT
THE ADMINISTRATION TO. THE
ARGUMENT THAT WAS MADE WHAT'S
CALLED CASCADING EFFECT MEDICINE
ADJOURNMENT POINT. THAT WHAT
HAPPENS IS YOU GET A TAX ON TOP
OF THE TAX ON TOP OF THE TAX ON
TOP OF THE TAX WE LITERALLY
COPIED IT HAD MEETINGS WITH F.
T. BE IMPORTED WEEKLY ALL BOARD
OF EQUALIZATION AND THE LIKE.
AND WHAT WE'RE DOING IT'S
LITERALLY LIKE THE RESALE NUMBER
WHERE.
YOU SEE JUST IT'S THE LAST EVENT
THAT GETS TAXED IT'S NOT ALL THE
PIECES AND PARTS IT'S TO THE
SALE. TO THE CONSUMER AT THE END
OF THE DAY.
IT'S ALSO ONLY DEALING WITH
BUSINESS TO BUSINESS SO IT TAKES
OUT ALL THE ISSUES.
A PROGRESS SHIP REGRESSIVITY
THAT WE'RE CONCERNED ABOUT AND
THAT'S IT IN THE NEXT ISSUE THAT
WAS TALKED ABOUT OVER OVER AGAIN
THAT'S MENTIONED AGAIN IN THE
OPPOSITION. THAT THIS HURTS.
BUSINESS IN CALIFORNIA.
WELL IT WOULD IF IT WAS WRITTEN
DIFFERENTLY THE WAY IT'S WRITTEN
IS LIKE A CONSUMPTION TAX.
BASICALLY SAYS THAT IF YOU'RE
DOING BUSINESS AND CONSUMING IT
BUT THE ACT THE SERVICES IN
CALIFORNIA. THEN YOU PAY THE TAX.
BUT FOR CALIFORNIA IF YOU'RE
CALIFORNIA COMPANY AND YOU'RE
DOING BUSINESS OUTSIDE OF
CALIFORNIA YOU'RE NOT
DISADVANTAGED IT'S A CONSUMPTION
TAX LET ME DEFINE. WHAT AN
ARCHITECT I'M I'M WORKING IN IT
IN LOS ANGELES ON BUILDING A
BUILDING IN CHINA ALL THOSE
DRAWINGS OF THOSE WORKERS ARE
SITTING ON LOS ANGELES DON'T
SUFFER ATTACKS BECAUSE THE
CONSUMPTION OCCURS IN CHINA?
I'M A LAWYER IN NEW YORK AND
COMING TO LOS ANGELES TO TRY
CASE IT'S A TAXABLE EVENT ONLY
IN THE BUSINESS TO BUSINESS
CONTEXT. IF HANDLING SOME
PERSONAL MATTER IT'S NOT
BUSINESS RELATED IT'S NOT A
TAXABLE EVENT IT'S ONLY BUSINESS
TO BUSINESS.
THE NEXT WAS THE WHOLE IDEA OF
THE IN THE THAT THIS IS BEING A
HIGH TAX.
RATE THAT WOULD BE TRUE IF IT
WEAKNESS WASN'T BUILT UPON THOSE
CHANGES AS A RESULT OF THE TRUMP
TAX.
THE TEST IS IT ANYTHING
BUT IT COST ME A FEW PENNIES
DOUBLE ON THE OTHER SIDE OF THE
LEDGER WELL IT SEEMS TO HE DID
THE ANALYSIS IS PRETTY CLEAR IT
WILL LOOK AT THIS IN FUTURE
HEARINGS I JUST WANNA. BE SHE
SPOT THIS FOR YOU MISTER
CHAIRMAN.
GOVERNOR MINISTRATION THEY TALK
ABOUT COSTS
LITERALLY WITH A MODEL WAS DE
SOMETHING THAT DEALT WITH
CONSUMERS THAT DEALT WITH
BUSINESSES AND THAT ASSUME TO
SERVICE TAX OF A HUNDRED TWENTY
TWO BILLION DOLLARS. ACROSS
EVERY SINGLE THING IN CALIFORNIA
BETWEEN STE NINER MILLION SIX IN
A MILLION DOLLARS EVEN IF YOU
LOOK AT THOSE PERCENTAGES BASED
UPON. ARE PROJECTED REVENUES OF
FOURTEEN BILLION DOLLARS IT'S
LESS THAN ONE PERCENT
ADMINISTRATIVE COSTS UNDER ANY
PERSON WHO WOULDN'T BE HAPPY
WITH COLLECTION RATE OF ONE
PERCENT AND I STILL THINK THAT
WE WOULD ARE ANALYSIS BASED UPON
THE EXPERTS THAT WE HAVE. WE
STILL THINK THAT PERCENTAGE IS
HIGH.
AND THE OTHER IDEA ABOUT THE
ADMINISTRATION OF ALL THIS
THAT'S BEEN RAISED IN THE
ANALYSIS IN THE LIKE THE TRUTH
OF THE MATTER IS MANY OF THE
SUBJECTS IN THE INCOME TAX FIELD
WITH CORPORATIONS. HAVE ALREADY
BEEN DEALT WITH IN BUT STUDENTS
CAN ADDRESS THIS THESE ISSUES
FROM THE FRANCHISE TAX BOARD THE
BOARD WANTED THESE DEFINITIONS
AND IDEAS. TIMING MAY BE
DIFFERENT BECAUSE HOW YOU'RE
CAPTURING THE MONEY BUT THE
IDEAS OF WHAT CONSTITUTES NEXUS
AND A POOR APPORTIONMENT. HAVE
BEEN DEALT WITH IN MANY RESPECTS
THE BOTTOM LINE ARCHITECTURE OF
THIS BILL. IT'S A BOLD ON BILL
WE TOOK EVERY SINGLE ASPECT OF
GOVERNMENT THAT HAS BEEN PROVEN
AND TESTED.
OKAY.
YEAH EVERY ASPECT OF GOVERNMENT
IS UNPROVEN UNTESTED MET WITH
THE ADMINISTRATION'S OF THOSE
VARIOUS TAXING AND SHE'S HAVE
PEOPLE PART OF IT WHO WERE PART
OF THOSE ORGANIZATIONS. AND
BOLTED THOSE THINGS ON BECAUSE
WE DIDN'T WANT TO REINVENT WE
WANT TO TELL TO LIMIT THE AMOUNT
OF REINVENTION THAT WE WERE
DOING HERE. THE OTHER TWO
ARGUMENTS THAT WERE MADE WAS THE
WHOLE IDA OF THE IMPACT THAT I
UNDERSTAND IT ON FEES E. E. IT
IN WHAT YOU'RE FEES ARE GONNA
LEAVE YOU HAVE TO CHARGE A TAXES
WHAT WE COPIED IN THE MEASURE
WAS EXACTLY WHAT. THE CALIFORNIA
RETAILERS INSISTED UPON IN
NINETEEN THIRTY THREE WHEN ARMED
IN CALIFORNIA WE ADOPTED THE
SALES TAX ON GOODS WHICH IS
BASICALLY THAT THE TAX HAS TO BE
BELOW THE LINE WE REQUIRE THAT
THE TAX BE DISPLAYED BELOW THE
LINE. SO OBVIOUS EVEN ARCHITECT
BECAUSE SO MY GOD THIS WITH
PRESSURE ON MY FEES AND AFTER
REDUCE MY FEES. ARM FOR THIS
SAME ARGUMENT WAS MADE WITH
RESPECT TO SALES TAX ON GOODS
AND WE DID EVERYTHING WE CAN TO
TO MODEL BUT WE'VE DONE BEFORE
IN THE OTHER CONTEXT AND LASTLY.
THIS NOTION THAT THIS IS GOING
TO BE A HORRIBLE IMPACT ON SMALL
BUSINESS I WAS LIKE. TO HEAR
THAT AND CAL IT IN SACRAMENTO
WHEN YOU KNOW BEING A SMART
FORMER SMALL BUSINESS PERSON
MYSELF.
SO OFTEN I ARGUE WHEN THERE'S
THESE BIG ORGANIZATIONS THAT I
AM IN AWE Y. MUM BECAUSE THEIR
ARGUMENT IS TO PROTECT
THEMSELVES. THE IS IS DESPITE
FOR SMALL BUSINESS WELL THE
REALITY IS WHEN YOU LOOKED AT AN
ACCOUNTING AND YOU SAW HOW MUCH
THEY'RE SAVING VERSUS HOW MUCH
IT'S COSTING THIS IS NOT THREE
PERCENT ON GROSS REVENUES OF THE
BUSINESS. THIS IS IF I HAVE A
BUSINESS TO COST A MILLION
DOLLARS MOST OF MY COST
EMPLOYMENT. YOU KNOW NOT TAXED
RENT NOT TAXED COST OF GOODS NOT
TAXED MAYBE I HAVE TIRED
ACCOUNTANT MAYBE. MY SPOUSE DOES
IT MAYBE I HAVE A HAVE TO HIRE A
LAWYER OR SOMETHING LIKE THAT SO
MAYBE SPEND FIFTY GRAND AND THAT
YOU TAXES FIFTEEN HUNDRED ON ONE
SIDE OF THE LEDGER BUT WHEN YOU
ASK ANYONE HONESTLY LOOK AT THE
QUESTIONS SAY IS MY TAXES ARE MY
TAXES. GOING UP AND IF YOU'RE
NOT GROSSING LESS THAN THREE
FIFTEEN AND YOU'RE GETTING A
TWENTY PER
AT DEDUCTION YOU ARE
DRAMATICALLY BETTER OFF. SO WHAT
WE TRY TO DO IS TO FIND THAT
SWEET SPOT IN THE TAX.
FORT BUT THE THE FEDERAL
GOVERNMENT WHERE WE STILL. CLIP
BUSINESS HAVE LESS TAX MAY PAID
IN TWO THOUSAND SEVENTEEN ON THE
ONE HAND CREATED THAT HAD ROOM
IN A WAY AND TOOK THAT UP WITH A
LITTLE BIT OF MONEY. WHICH IS
DEDUCTIBLE SO FEDERAL GOVERNMENT
PAYS A PIECE AND DELIVERED EVERY
PENNY OF THAT TO HELP
CALIFORNIA'S ECONOMY THAT HELPS
WHAT KINDS OF THE REDUCED THAT
TAX TWO PERCENT IT'S A LOT OF
MONEY. BEEF D. E. O.'S TALKING
TO US.
CENTER MORLOCK ESTAMOS EIGHT
POINT TWO FIVE PERCENT COSTA
MESA RIDGE OF THE SIX POINT TWO
FIVE PERCENT IT'S IT HAS IMPACTS
THAT ARE ON ON BUSINESSES AND I
THINK AS THEY BEGIN TO LEARN
THAT.
YOU KNOW I KNOW PEOPLE DON'T
TRUST GOVERNMENT AND THEY JUST
THINK OH MY GOT TAXES TO NOSE
UNDER THE TENT AND WHATEVER.
MAYBE SO. BUT IS THAT A REASON
FOR US NOT TO TO ENGAGE IN
HONEST DISCUSSION ABOUT WHERE WE
HAVE TO GO. THE ANALYSIS HAS A
NUMBER OF POINTS VIEW OF THEM
TECHNICAL THINGS I THINK ARE
CORRECT A SOME OF THE OTHER
ISSUES THAT HAVE BEEN TALKED TO
WITH OUR STAFF ABOUT
APPORTIONMENT NEXUS. CERTAINLY
WE CAN TALK ABOUT I THINK WE'RE
OKAY WE PUT SOME BELTS AND
SUSPENDERS ON THAT WE'VE COPIED
THE EXACT SAME LANGUAGE AT THE
BOARD OF EQUALIZATION. FOR THE
REST OF HAVE TO BE DONE THAT THE
LOVE THAT THE FOR THE FIVE
HUNDRED THOUSAND DOLLAR TEST TO
BE FIFTY BE WE USED THEIR TEST
FOR DETERMINING WHETHER ON ON
THE NEXUS ISSUE. SO IF WE'RE
GOING TO BE STAND WHERE EXACTLY
IN HARMONY WITH THE FRANCHISE
TAX BOARD AND IF THE FRANCHISE
TAX BOARD LOSES THEIR CASE WE
PUT THE BURDEN ON THE ON THE ON
THE CALIFORNIA BUYER TO PAY THE
TAX JUST LIKE. THE SELLER PAYS
THE TAX WE BOOTSTRAPPED THIS
FOUR HUNDRED WAYS FROM SUNDAY I
KNOW THAT IT WILL TAKE SOME TIME
TO DRILL IN TO SEE ALL THIS THAT
ANGLES AND. AND ARCHITECTURE OF
WHAT WE HAVE DONE HERE BUT I
THINK THAT IT IS IMPORTANT SOME
OF THE OTHER THINGS ON POSTAL
SERVICE YOU MENTION THAT WAS PUT
IN BY THE LEDGE COUNCIL THEY
SAID THAT IT WAS REQUIRED. WE
SAW WAS DUPLICATIVE LEAD COUNSEL
SAYS THAT'S HOW WE DO IT AS WE
JEWEL IN DEEPER WE COULD TALK
ABOUT THOSE THINGS BUT AGAIN.
THIS WAS NOT WRITTEN OFF THE
CUFF THIS WAS NOT WRITTEN
WITHOUT CONSULTATION OF A LOT OF
PEOPLE A LOT HOURS TO FIGURE OUT
AT LEAST SOME ROAD MAPS SOME
FRAMEWORK FORWARD THAT THE
GOVERNOR TAKS ABOUT. IN SO YOU
KNOW WHAT IT IT IT DID THE POINT
OUT A COUPLE OF POINTS I WANT TO
MAKE IS A CLOSE HERE AND AND AND.
IT IS WHEN I WAS AN ORANGE
COUNTY PRESENTING TO AN ORANGE
COUNTY TAXPAYER GROUP. I WAS
WITH SOME ALLEGED OFFICIALS
THERE AND AND AFTER I PRESENTED
THEY SAID YOU KNOW HERTZBERG.
THIS IS NOT REVENUE COLUSA TAX
CUT.
YOU KNOW IN AGAIN AND YOU SOUND
LIKE SNAKE OIL SALESMAN YOU'RE
TRYING TO SELL IN THE TAX THE
TAX CUT AND SO WOULD YOU KNOW I
DON'T TALK ABOUT IT.
BUT BASICALLY WHAT HE SAYS AND
WE MODEL THIS IF TWENTY PERCENT
OF THE MONEY IS COMING FROM OUT
OF STATE TO SO MANY PEOPLE WANT
TO TAKE ADVANTAGE OF OUR ROADS.
AND OUR BUSINESS ENVIRONMENTS
BUSINESS YEAR. EVEN THOUGH WE'RE
RAISING FOURTEEN BILLION AND
GIVING FOURTEEN BILLION BACK
TWENTY PERCENT OF THAT FOURTEEN
MILLION TWO POINT THOUGH IT IS
COMIG FROM OUT OF STATE
ENTITIES. THAT AGAIN COULD
MINISTER THIS IS GETTING A LOT
EASIER EVEN THAN WE DO ON THE
TAX SIDE BECAUSE IT'S ALL. COULD
BUSINESS TO BUSINESS THEY HAVE
IT RECORDS IT'S A WHOLE
DIFFERENT DYNAMIC ON A BUSINESS
TO BUSINESS DYNAMIC SO IT
ACTUALLY IS LESS BURDEN.
I WHICH A CREATIVE WAY TO GET
MONEY FROM OUT OF STATE PEOPLE
HAVE LESS OF A BURDEN ON
CALIFORNIA TAXPAYERS SO.
I DON'T THINK THIS IS A NEW
TAXES TO ITS SIMPLEST FORM.
EVERYBODY EVERYONE THESE
BUSINESSES ARE ALSO GONNA GET
THE BENEFIT OF THE TAX CUT. IT
IN TERMS OF THE DEDUCTION.
SHE'S ME IN TERMS OF THE
REDUCTION IN SALES TAX ON GOODS.
PEOPLE THAT ARE WEALTHY YEARS
ANY A BIGGER NUMBERS BECAUSE
THEY CONSUME MORE.
EVERY FAMILY WITH THE ONLY
BUSINESS ARE NOT ARE GOING TO
SEE THE OTHER SIDE OF THE LEDGER
I WOULD SIMPLY TALK ABOUT THIS
IS THE FIRST SMALL STEP. TOWARD
THIS MODERNIZATION IT DOES OUT
OF FRAMEWORK IT DOESN'T EAT HE
INTRODUCE INTO THE LEGISLATIVE
BRANCH.
AND INTELLIGENT DISCUSSION THAT
I OFFER ANY AMENDMENTS OR ANY
IDEAS OF FOLKS THAT WANT TO DO
IT WHAT I'M NOT INTERESTED IN.
IS FOLKS TO JUST COME IN AND SAY.
NO. OR. YOU KNOW WITHOUT A
SOLUTION YOU GOT IF YOU WANT TO
SAY NO WITH A NO IN ONE POCKET
HAS TO COME WITH THE SOLUTION IN
THE OTHER POCKET.
BECAUSE THERE'S TOO MANY GROUPS
THAT JUST SIMPLY DO THAT AND I
THINK IT'S IMPORTANT FOR US. BUT
TO TO BE SMARTER THAN THAT LOOK
I KNOW IT'S TOUGH.
THE IDEA HERE IS TO THINK LONG
THE IDEA HERE IS TO RESPECT IN
EVERY ASPECT OF THE BREATH OF
THIS LEGISLATIVE BRANCH OF
GOVERNMENT. TO BRING BACK SOME
OF ITS GLORY TO HAVE THESE KINDS
OF DISCUSSIONS THAT GIVEN THE
TAKE OF WHAT IT TAKES TO MAKE
THIS HAPPEN.
YOU KNOW AND IT'S IT'S A MODEST
PHASE IN IS AN EFFORT AS I SAID
THAT THE MOVIE TO TO PICK UP CAN.
INS WITH THAT I HAVE SOME
PACKETS HERE THAT HAVE A NUMBER
THE NUMBERS I WANT TO SHARE WITH
YOU I DIDN'T WANT TO GIVE NOT
EARLIER BECAUSE I WANTED YOU TO
FOCUS ON MY COMMENTS. TALKS
ABOUT THE THE THE WHO WATCHED
WHAT'S BEING TAXED AND WHAT'S
BEING EXCLUDED WE'VE TALKED
ABOUT A SOME EDITORIALS HAVE
BEEN TALKING ABOUT THIS OVER THE
YEARS YOU CAN TAKE HOME AND
REDID NIGHTS.
AND.
WITH THAT ODD IF IF I'VE
MISSED ANYTHING OR MISSTATED THE
IN THE MARKETPLACE OF IDEAS THAT
WE HAVE THE GIVE AND TAKE OVER
THESE LAST YEARS. TALKED ABOUT I
WOULD LET THAT BRED THE MISTER
WILLIAMS DE SAY ANYTHING THAT I
YOU THINK I MIGHT HAVE MISSED
WHAT THINGS THAT YOU MIGHT ADD
AND I'D. CLOSE ON THAT THANK YOU
SO MUCH AND HERTZBERG FOR THE IN
DEPTH.
PRESENTATION AND KNOW THAT
WE'RE GONNA HAVE A SERVER
QUESTIONS AND COMMENTS AND
GRATEFUL FOR ALL YOUR WORK
MISTER WOODS IS THERE ARE THERE
ANY ITEMS THAT YOU'D LIKE TO ADD
TO WHAT SOME HERTZBERG HAD JUST
A PRESENT TO THE COMMITTEE.
JUST ONE.
ITEM I'D LIKE TO SORT OF
EMPHASIZE SEES IS.
THIS PACKAGE IS REVENUE NEUTRAL.
AND SO IT DOES HAVE EXPAND THE
SALES TAX TO SERVICES OF THREE
PERCENT BUT IT ALSO PROVIDES A
TWO PERCENT REDUCTION ON THE
GOOD SIDE.
SO FOR MANY BUSINESSES IT'S KIND
OF IT'S MIXED IF YOU'RE
PURCHASING SERVICES THAT BE HARD
NOW TAXABLE YOU'RE GOING TO BE
PAYING. EXTRA. BUT MANY
BUSINESSES PURCHASE A LOT OF
GOODS NOT JUST RESELL BUT
THEY'LL PURCHASE YOU DON'T
VEHICLES THINGS LIKE THAT.
AND THE TAXES ON THOSE WILL GO
DOWN SO IT'S SORT OF A NET
IMPACT ON A BUSINESS THAT FITS
IS IMPORTANT RECOGNIZE THAT
THERE IS. A SAVINGS FOR MANY OF
THE PURCHASES OF BETTER SMALL
BUSINESSES MAKE.
THANK YOU SO MUCH OF WHAT'S IN
THAT WAS GONNA BE ONE ITEM I
SEND HERTZBERG UNDER THE UP
PROPOSED A BILL THAT YOU HAVE
RIGHT NOW. JORDA WALKS THROUGH
THE TWENTY TWENTY TWENTY TWENTY
ONE.
IN TWENTY TWENTY TWO EYES
SCALED DOWN A ON THE OTHER SIDE
TAXI JUST WALK THROUGH THAT REAL
QUICK. AND BASICALLY WHAT IT IS
ALL ALL GIVE THE DETAILS TO STE
WILLIAMS BUT. BASICALLY THE
NUTSHELL IS LOOK WE CAN'T START
THIS INSTANTANEOUSLY WERE NOT
TRUE TRYING TO BE THOUGHTFUL
THESE WERE PEOPLE WHO WORKED IN
FINANCE WHO DID THIS BEFORE AND
THEY UNDERSTAND HOW DIFFICULT
THIS IS IN THE MECHANISMS OF IT
ALL. WE'RE MAKING PREDICTIONS WE
DON'T KNOW IF THEY'RE ACCURATE
SO WE'LL GO TO THE NUMBERS BUT
WHAT WE'RE DOING IS A SLOW RAMP
UP. WE HAVE A CHECK AND BALANCE
AND THAT CHECK AND BALANCE AT
MECHANISM THAT YOU TALKED ABOUT
ME ANALYSIS YOU OUTLINED THE
MECHANISM BUT THE PURPOSE OF THE
MECHANISMS TO MAKE SURE IT'S
REVENUE NEUTRAL. EVERYTIME WITH
YOU GET WITH AN EIGHTH OF A
POINT UPPER DOWN YOU DO THE
ADJUSTMENTS AND SO THIS WAS
WRITTEN WITH. BUT THE NOTION OF
HOW THE DEPARTMENT OF FINANCE
REALLY WORKS IN REAL TERMS.
BUT IN THAT SITUATION SO I CAN
GIVE IT OVER TO YOU AT THE TOP
OF HIS OFFICE.
ITS WINGS.
LET'S GET OUT THINKING ABOUT IT.
IT'S WRITTEN IT'S WRITTEN BY.
FINANCE HEADS. FROM THE
DEPARTMENT OF FINANCE
SO THEY. YOU KNOW THROUGH
RESPECT THEIR SENSITIVITIES HOW
TO ACTUALLY MAKE IT PRACTICAL.
IT FEEL FREE TO GIVE BOTH RIGHT
YEAH I I THINK I'M HAVING A
LITTLE TROUBLE LOCATING THE
ACTUAL.
PERCENTAGES BUT BASICALLY FULL
THREE PERCENT BY TWENTY TWENTY
TWO. IT IS IT IS IMPLEMENTED IN
OVER THREE YEARS.
SMALL LESS THAN A PERCENT THE
FIRST YEAR TWO PERCENT IN THE
SECOND YEAR IN SEVERAL HAVE ONE
AND A HALF AND THREE RIGHT RIGHT.
AND I THINK THE.
OTHER ASPECT OF THIS WHICH IS
VERY VERY IMPORTANT IT IS DURING
THAT.
PHASE IN PERIOD.
DID WE COULD HAVE LANGUAGE THAT.
THE DEPARTMENT OF FINANCE
DIRECTOR OF THE DEPARTMENT OF
FINANCE.
WOULD LOOK AT THE REVENUES BEING
RAISED BY THE SERVICES TAX.
AND AT THE REVENUES BEING
REDUCED BY THE CUT IN THESE TAX
ON GOODS.
AND SEE IF REVENUE NEUTRALITY IS
BEING ACHIEVED IN ANY PARTICULAR
YEAR. AND SO IF IT TURNS OUT FOR
EXAMPLE THAT THE SALES TAX ON
SERVICES IS RAISING MORE MONEY
THAN ANTICIPATED DURING THIS
PHASE IN PERIOD. THE DIRECTOR OF
FINANCE HOUSING AUTHORITY TO
REDUCE
THE RAID ON GOODS IN INCREMENTS
OF ONE EIGHTH OF ONE PERCENT. IN
ORDER TO BRING.
THE BILL BACK INTO REVENUE
NEUTRALITY AND THEY'VE GOT THREE.
SHOTS WITHOUT THROUGH TWENTY
TWENTY THREE.
TO TO ASSURE THAT THE BILL IS
REVENUE NEUTRAL.
APPRECIATE IT THANKS SO MUCH BUT
WHAT WOULD THAT TO BE ABLE TO DO
IS OPEN IT UP.
TO ANY INDIVIDUAL WHO LIKE TO
BETTER COME SPEAK IN SUPPORT OF
THE BILL GRASSES SERGEANTS IT'D
BE ALRIGHT IF WE COULD PLEASE
MOVE THE.
OUR POSTER BOARD THERE. ARE IN
AGAIN WE'RE ASKING FOR FOLKS TO
BE ABLE TO COME SPEAK IN SUPPORT
IF YOU COULD STATE YOUR FIRST
AND LAST. I IS WELL AS YOU OR I
ORGANIZATION THEN WHAT WE'D LIKE
TO BE ADDED TO. THE IS THAT WE'D
LIKE TO INVITE.
ONE PRIMARY WITNESS.
TO SECONDARY WITNESSES TO BE TO
COME SPEAK IN OPPOSITION.
WELCOME ANYONE ELSE WHO MAY BE A
PUDDLE WHO'S RUNNING AN OPEN IT
UP TO THE COMMITTEE FOR PLENTY
OF QUESTIONS OR COMMENTS AGAIN
WE HAVE NO TIME LIMIT FOR
COMMITTEE MEMBERS WE WANT TO
MAKE SURE THAT WE HAVE A ROBUST
DISCUSSION.
AND THEN WE ARE LOOKING AT A
DATE CERTAIN OF JUNE THIRTEENTH
FOR A SECOND HEARING WE'RE GOING
TO DO A DEEPER DIVE INTO THIS
IMPORTANT ISSUE.
ABOUT WITH THAT HOUSE UP WITH
THOSE HOUSEKEEPING ITEMS FOR
INTERNET OVER PLEASE IF YOU
COULD PLEASE TAKE YOUR FIRST AND
LAST SCAN TO SEE SIR MISTER
CHAIRMAN SENATORS TERRY BROWN
AND BEHALF OF SEIU CALIFORNIA.
WERE CERTAINLY IN SUPPORT OF
THIS CONCEPT THE GOALS OF HAVING
A. PROGRESSIVE YET MODERN TAX
STRUCTURE IS VERY IMPORTANT OUR
ORGANIZATION GOING FORWARD WE
LOOK FORWARD TO FUTURE HEARINGS
IN DISCUSSIONS ABOUT IT. WANT TO
THANK YOU COMMITTEE AND
COMMITTEE STAFF FOR THE
EXCELLENT ANALYSIS.
LOOK FOR TO WORKING WITH YOU IN
THE FUTURE BECAUSE HER. IT'S
GOOD TO SEE YOU GOING SIR. GOOD
MORNING A SECURE MEMBERS OF THE
COMMITTEE ABOUT BRIAN NELSON
THEM AFTER THE AMERICAN
FEDERATION STATE COUNTY
MUNICIPAL EMPLOYEES.
ONE OF FIRST OFF THANK YOU ALL
FOR HAVING THIS DISCUSSION TODAY
FIGURE SENATOR FOR BRINGING THIS
ISSUE FORWARD.
FOR THE BETTER PART OF IT OVER
A DECADE NOW HAVE SOME
CALIFORNIA'S BEEN COMMITTED TO
EXPLORE THIS IDEA SERVICE TAXES
FLOOR IN AN IDEA ABOUT HOW TO.
CREATE A STABLE SOURCE OF
REVENUE IN THE STATE OF
CALIFORNIA WHAT WOULD REDUCE
VOLATILITY AND ENSURE THAT WE
HAVE ENOUGH RESOURCES TO PREPARE
FOR DYNAMICALLY CHANGING ECONOMY
WITHOUT SHIFTING THE BURDEN
BURDEN ON WORKING PEOPLE. HOW WE
THINK THIS CONCEPT IS A
PROGRESSIVE ONE?
THAT HOLD SOME WEIGHT AND SOME
VALUE IN THE SPHERE PUBLIC
OPINION AND WE HOPE THAT THIS
CONVERSATION CONTINUES. AYE WE
LOOK FOR TO AYE AS OUR PARTNERS-S. YEAH YOU MENTIONED I'VE BEEN
A PART A CONVERSATION AS WELL.
TOO MUCH TO THINK YOU FOR BEING
HERE.
WE THEY GO TO SEE IF THERE'S
ANYONE ELSE IN SUPPORT OF THIS
BILL IN OR THE CONCEPT IF
PLEASE COME FORWARD THIS IS LAST
CALL FOR THOSE WHO ARE IN
SUPPORT. IN AGAIN WILL BE COMING
BACK TO THIS ON JUNE THIRTEENTH.
ANYWHERE ELSE IN SUPPORT TO
PLEASE ADVANCE.
OKAY.
WE'RE NOT GONNA INVITE THOSE
THREE WITNESSES WHO WILL BE
SPEAKING IN OPPOSITION WE'RE
GONNA ASK FOR ONE ADDITIONAL
CHAIR TO BE A TO PLEASE BE
BROUGHT FORWARD.
ON.
WE HAVE ONE PRIMARY TO SECONDARY.
WE'RE GONNA ASK THE GROUP WHO'S
JUST ADVANCE WOULD LIKE TO BE A
TO BE OUR PRIMARY WITNESS IN
OPPOSITION WELCOME MA'AM.
THANK YOU SO MUCH FOR TAKING THE
TIME AND IT'S ALWAYS GOOD TO SEE.
BURNETT ON ONE SECOND WILL GET
THE MICROPHONE ON.
YOU'RE ON.
GOOD AFTERNOON MISTER CHAIR
MEMBERS OF THE COMMITTEE TO
RESTORE MAY REPRESENTING THE
CALIFORNIA TAXPAYERS ASSOCIATION.
FIRST OF ALL WHILE WE APPRECIATE
THE INTENT OF THE BILL TO
ADDRESS REVENUE VOLATILITY WE
HAVE SEVERAL CONCERNS AND WE
ABSOLUTELY DID ANALYZE THE BILL
VERY THOROUGHLY. AND WHILE THE
BILL TAKES A SLIGHTLY DIFFERENT
COURSES STILL IMPOSES A MASSIVE%
TAX INCREASE AND THAT IS WHY ARE
OPPOSITION LETTER REFLECTS SOME
OF THE SAME ARGUMENTS. THAT WE
HAD WITH PRIOR VERSIONS OF THIS
FILM.
COUPLE OF CONCERNS THAT WE HAVE
WITH THE BILL FIRST OF ALL THIS
BILL INCREASES COSTS ON HEALTH
CARE. PUTS COMEDIAN HAS
DISCUSSED AND THE LEGISLATURE
HAS DISCUSSED HEALTH CARE
CHALLENGES FOR CALIFORNIANS
ALTHOUGH THE BILL EXEMPTS
SERVICES THAT ARE PROVIDED BY
HOSPITAL SUCH AS MEDICAL
SERVICES AND DOCTOR VISITS. IT
DOES NOT EXEMPT SERVICES
PURCHASED BY HOSPITALS THEREFORE
SERVICES LIKE LEGAL ACCOUNTING
AND BILLING AND ALSO JANITORIAL
SERVICES WOULD INCREASE COSTS
THE HOSPITALS. THE THESE CREASE
THESE COST INCREASES THEN COULD
BE PASSED ON TO PATIENTS.
SIMILARLY THE SITUATION WOULD
ALSO APPLY TO EDUCATION WHERE
EDUCATION SERVICES ARE EXCLUDED
EXEMPT FROM THE TAX BUT THEN
EDUCATION FACILITIES AND
INSTITUTIONS SUCH AS PRIVATE
COLLEGES AND UNIVERSITIES WOULD
BE SUBJECT. TO TAX ON THE
PURCHASE OF THEIR SERVICES
THEREFORE THERE WOULD BE
INCREASES IN TUITION COSTS FOR
CALIFORNIANS AS WELL.
THIS WOULD ALSO APPLY TO
UTILITIES.
SO ALL OF THOSE NON MUNICIPAL ON
UTILITIES WOULD BE SUBJECT TO
ATTACKS WHEN THEY PURCHASE ANY
SERVICE ONCE AGAIN WE'RE TALKING
ABOUT LEGAL ACCOUNTING BILLING
THESE ARE ESSENTIAL SERVICES. TO
ALL BUSINESSES.
WE'RE ALSO CONCERNED THAT THIS
BILL WOULD INCREASE COSTS FOR
CONSUMER GOODS. THIS BILL
ABSOLUTELY DOES NOT ADDRESS THE
TAX CASCADING OR WHAT WE CALL
TAX PERMITTING.
FOR EXAMPLE IF YOU HAVE THE
MANUFACTURE OF A FOOD PRODUCTS
WHEN THE MANUFACTURER GOES TO
OBTAIN MARKET RESEARCH. ABOUT
THE CONSUMER CHANGES AND TASTES
AND MOVING FROM A LESS HEALTHY
TO MORE HEALTHY ORGANIC PRODUCTS
THAT PURCHASE NOW WOULD BE
SUBJECT TO A THREE PERCENT TAX.
WHEN THERE IS CONSUMER TESTING
OF THAT PRODUCT TO ENSURE THAT
THE FLAVOR THE TEXTURE THAT
PRODUCT FOR EXAMPLE.
WOULD BE SUITABLE FOR CONSUMERS
THAT ALSO WOULD NOW BE SUBJECT
TO A THREE PERCENT TAX.
WHEN THEN MANUFACTURER ALSO.
GOES TO HIRE INDEPENDENT HEALTH
INSPECTORS.
IN ORDER TO ENSURE THAT THEIR
PRODUCT MEETS FDA LABELING
REQUIREMENTS.
THAT SERVICE NOW IS ALSO SUBJECT
TO TAX.
WHEN THE PRODUCT IS READY AND IS
THEN TRANSPORTED TO A
DISTRIBUTION CENTER THAT PARENTS
FLOTATION.
BECAUSE OUR SERVICE IS NOW ALSO
SUBJECT TO TAX.
ALL OF THESE TAX SERVICES AT THE
MULTIPLE STAGES. OF.
PRODUCTION IS KNOWN AS TAX
PERMITTING. AND THESE COSTS ARE
OFTEN PASS ON TO THE CONSUMER.
IF THE MANUFACTURER COULD NOT
PASS THOSE COSTS ON TO THE
CONSUMER BECAUSE OF OTHER
COMPETITORS WHAT LIKELY CAN
HAPPEN AND HAS HAPPENED IS THERE
COULD BE. LOWER WAGES FEWER JOBS
OR AS A LAST RESORT RELOCATION
OUT OF STATE.
AND SO WHAT WE HAVE NOT SEEN.
THE ASSUMPTIONS THAT GO INTO
THIS REVENUE NEUTRAL ESTIMATE.
WE KNOW THAT THIS IS A THREE
PERCENT TAX INCREASE. WITH A TWO
PERCENT TAX REDUCTION AND IT'S
UNCLEAR WHETHER OR NOT THOSE
FISCAL ESTIMATES TAKE INTO
ACCOUNT. THE HIGHER COSTS FOR
CONSUMERS THE POTENTIAL OF LOS
TAX REVENUE DUE TO LOWER
PERSONAL INCOME TAXES AND
CORPORATE TAXES WHEN THESE
COMPANIES AND CALIFORNIANS
EITHER LOSE THEIR JOBS OR HAVE
LOWER WAGES.
LAST BUT NOT LEAST URINALYSIS
IDENTIFIES OVER A DOZEN
DIFFERENT IMPLEMENTATION
CONCERNS WHAT WILL LIKELY HAPPEN
IS IF THIS BILL GOES FORWARD.
THERE WILL BE REGISTRATION
REQUIREMENTS AND COLLECTION
REQUIREMENTS ON PEOPLE AND FOR
OF SERVICE PROVIDERS WHO HAVE
NEVER BEFORE. BEEN REQUIRED TO
COLLECT TRACK AND WE MET ATTACKS
THIS COULD IMPACT THOUSANDS OF
SERVICE PROVIDERS AND LIKELY
MORE AND ALONG THE LINES OF TENS
OF THOUSANDS OF SERVICE
PROVIDERS.
THEY WILL ALL HAVE TO ESTABLISH
A MECHANISM TO TRACK COLLECT AND
REMIT THESE TAXES TO THE STATE.
ALSO FOR PURPOSES OF APPLYING
THE TAX THE SELLER HAS TO KNOW
AT THE TIME THAT THE THE SERVICE
IS SOLD.
HOW THE PURCHASER WILL USE THAT
SERVICE?
WHERE THE PURCHASER WILL USE
THAT SERVICE AND HAS TO
DETERMINE THE PROPORTION OF THE
BENEFIT OF THAT SERVICE THAT WAS
RECEIVED IN CALIFORNIA AND ONCE
AGAIN THAT IS THE TIME OF
THEY'LL? THE SELLER HAS NO
KNOWLEDGE AND NO ABILITY TO BE
ABLE TO DETERMINE THAT. BUT IF
THE SELLER. DOES NOT CORRECTLY
COMPLY APPLY THE TAX THAT SELLER
IS SUBJECT TO PENALTIES BY THE
STATE.
ALL WE HAVE TO DO IN TERMS OF
LOOK TO THE IMPLEMENTATION OF
THE CANNABIS REGISTRATION SALES
TAX. IN ORDER TO SEE THE
CHALLENGES AND DIFFICULTIES.
AND WE KNOW THAT THAT IS JUST
ONE INDUSTRY. THIS PROPOSAL IS
FOR ALL INDUSTRIES THAT SERVICE
THAT PROVIDE SERVICES WITH
CERTAIN EXEMPTIONS.
IN CLOSING THIS IS A MASSIVE TAX
INCREASE ON CALIFORNIA EMPLOYERS.
THERE ARE OTHER STATES THAT HAVE
TRIED A BROAD BASED SELL TAX
INCREASE.
BUT THEY HAVE REPEALED THAT
PROPOSAL.
JUST A FEW MONTHS AFTER THEY'VE
ENACTED IN THOSE STATES INCLUDE
FLORIDA MASSACHUSETTS MICHIGAN
AND MARYLAND TO NAME A FEW. AND
THAT IS THE REASON WHY OTHER
STATES HAVE NOT.
EMBARKED ON A BROAD BASED CELLS
TAX BECAUSE OF THE COMPETITIVE
DISADVANTAGES NOW ALSO THE
CHALLENGES. WITH ADMINISTRATION.
RESPECTFULLY IN OPPOSITION.
IT IS MUCH MISTER ROEMER
GRATEFULLY HERE AND WE GREATLY
APPRECIATE YOUR TESTIMONY FAMILY
WELCOME IF YOU KNOW MY NEED TO
INTRODUCE YOURSELF AND THINK YOU
FOR TAKING TIME TO BE HEARING
COMMITTEE. THANK YOU SO MUCH
MISTER CHAIR GOOD AFTERNOON SIR
CHAIR MEMBERS OF MY NAME IS
SARAH BOOT I'M TESTIFYING TODAY
ON BEHALF OF THE CALIFORNIA
CHAMBER OF COMMERCE AND
RESPECTFUL OPPOSITION TO THIS
BILL.
AS BE NINE NINE THREE WOULD
INCREASE THE COST OF DOING
BUSINESS AND ALREADY COSTLY
STATE. EDITION OF THREE PERCENT
TAX ON MOST OF THE SERVICES USED
BY BUSINESSES IN THEIR DAY TO
DAY OPERATIONS. THIS WOULD BE A
SIGNIFICANT COST FOR BUSINESSES
TO COMPLY WITH THIS COMPLEX AND
CONFUSING BILL.
S. B. NINE NINE THREE WOULD HIT
SMALL BUSINESSES THE HARDEST
ALTHOUGH THE BILL HAS A LIMITED
EXCEPTION. FROM THIS TAX
INCREASE FOR SOME SMALL
BUSINESSES IT CERTAINLY DOES NOT
PROTECT ALL OF THEM.
SMALL BUSINESSES DEPEND ON THE
SERVICE IS INCLUDED UNDER SB
NINE NINE THREE TO CONDUCT THEIR
OPERATIONS WHILE LARGER
BUSINESSES WILL BE ABLE TO AVOID
PAYING TAXES ON CERTAIN SERVICES
BY BRINGING THEM IN HOUSE. MOST
SMALL BUSINESSES WILL NOT BE
ABLE TO DO SO. ADDITIONALLY THE
BURDEN OF COMPLYING WITH THIS
NEW TAX WILL ALSO BE MORE
CHALLENGING FOR SMALL BUSINESSES
AS THEY WILL. LIKELY HAVE
LIMITED RESOURCES SET UP NEW
COMPLIANCE SYSTEM FOR THIS TAX
ON SERVICES.
IF S. B. NINE NINE THREE IS
ADOPTED THE COST OF PRODUCING A
GOOD ARE PROVIDING A SERVICE IN
CALIFORNIA WOULD GO UP AS
MENTIONED BY OUR CAL TAX WITNESS
OF FOR SOME BUSINESSES THAT
COULD LEAD TO HIGHER PRICES.
PLACING CALIFORNIA GOODS AT A
COMPETITIVE DISADVANTAGE WHEN
COMPARED WITH BUSINESSES
OPERATING OTHER STATES OR
COUNTRIES.
FOR OTHER BUSINESSES THE
COMPETITION IS TOO STIFF TO
RAISE PRICES THESE BUSINESSES
WOULD BE INCLINED TO REDUCE
INVESTMENT AND EMPLOYMENT
CALIFORNIA TO COMPENSATE FOR THE
HIGHER COSTS.
THAT MEANS FEWER JOBS AND LESS
ACTIVE ECONOMIC GROWTH WHICH
ULTIMATELY MEANS LESS TAX
REVENUE FOR THE STATE.
THE IMPOSITION OF NEW BUSINESS
TAXES IS NOT HAPPEN IN A VACUUM
STATE AND LOCAL TAXES ARE
SIGNIFICANT COSTS FOR EMPLOYERS.
AND ARE THERE FOR A KEY FACTOR
IN BUSINESS PLANNING DECISIONS
AND NO OTHER STATE HAS A
BUSINESS TO BUSINESS SERVICES
TAXES EXTENSIVE IS THAT
CONTEMPLATED BY THIS BILL.
NUMEROUS STATES INCLUDING
CALIFORNIA ALREADY TAXED HANDFUL
OF BUSINESS SERVICES BUT THIS
BILL ATTACKS
ALMOST ALL OF THEM.
ONLY TO SMALLER STATES HAVE A
BROAD BASED SALES TAX ON
SERVICES AND ONLY TWO SMALLER
STATES TAX MORE THAN A HUNDRED
SERVICES. BUT CALIFORNIA HAS A
MUCH HIGHER TAX RATES ACROSS THE
BOARD. AND A MORE COMPLEX TAX
SYSTEM THANTHE STATE'S.
IN SOME S. B. NINE NINE THREE
WOULD ADD YET ANOTHER LAYER
TAXES ON THE CALIFORNIA
BUSINESSES AND STATE ALREADY HAS
BEEN RANKED AS HAVING THE FORTY
EIGHT WORST STATE BUSINESS TAX
CLIMATE IN THE COUNTRY. IT THIS
BILLS ADOPTED WE COULD SOON BE
IN LAST PLACE.
THANK YOU THANK YOU SO MUCH
WE'RE NOW GOING TO GO TO OUR
LAST SECONDARY WITNESSES AND WE
WELCOME YOU SIR AND THINK YOU
FOR BEING HERE THANK YOU MISTER
CHAIR MEMBERS JIM GROWS ON
BEHALF THE CALIFORNIA SOCIETY OF
CERTIFIED PUBLIC ACCOUNTANTS. OF
MY COMMENTS ALSO APPLY TO THE
EMERALD AGENTS WHO I THINK WILL
REGISTER THEIR OPPOSITION AS
WELL PERSONALLY THANK SENATOR
HERTZBERG FOR RECOGNIZING THAT
THIS IS A LONGER. MORE
COMPLICATED CONVERSATION I KNOW
YOU SPENT A TREMENDOUS AMOUNT OF
TIME ON IT AND WE LOOK FORWARD
TO CONTINUING THE CONVERSATION.
I'M SPEAKING AS A REPRESENTATIVE
OF.
BOB BY THIS.
AND WITH RESPECT TO THAT HOCKS
ITSELF I THINK IT NEEDS TO BE
RECOGNIZED. THAT.
UNFORTUNATELY CARRIES WITH IT A
HIDDEN TAX.
AND THAT HIDDEN TAX IS THE COST
OF COMPLIANCE.
MANY MANY OF THE BUSINESSES THAT
WILL BE AFFECTED BY THIS DO NOT
CURRENTLY COLLECT ANY FORM OF
SALES TAX AS MISTER WILLIAMS
NOTED SOME DO.
BUT ALSO.
THEY ARE PAIRS OF SALES TAX BUT
MANY ARE COMPLETELY UNFAMILIAR
HAVE NO SYSTEMS IN PLACE FOR
COLLECTION OF SALES TAX WHEN YOU
TAKE INTO ACCOUNT HOW THE BILL
AS DRAFTED RELATIVE TO
APPORTIONMENT. AND THE ISSUE OF
OUR BENEFIT. BY IT MAKES IT
INCREDIBLY DIFFICULT FOR THESE
BUSINESSES TO DETERMINE HOW TO
DO THIS.
THEY HAVE TO HIRE PROFESSIONALS
WERE REAL GLAD THEY HAVE TO HIRE
PROFESSIONALS EXCEPT THAT MANY
OF THESE BUSINESSES DO NOT HAVE.
THE MARGINS THAT WOULD ALLOW
THEM TO PAY FOR THIS OF THIS TAX
MAY CARRY WITH IT A TEN FIFTEEN
TWENTY FIFTY THOUSAND DOLLAR
COST. ASSOCIATED WITH COMPLIANCE
AND THE RISK OF NONCOMPLIANCE I
THINK THAT HAS TO BE TAKEN INTO
ACCOUNT IN ANY CONSIDERATION. OF
THIS TYPE OF TAX TO IN ORDER TO
MAKE SURE THAT WE ARE NOT
INADVERTENTLY DRIVING SMALL
BUSINESSES OUT OF BUSINESS
BECAUSE OF THEIR INABILITY. TO
ADDRESS THIS AND I THINK THE
COMPLEXITIES OF IT ARE A MAJOR
PART OF THAT SHOW WE INTEND TO
CONSTRUCT CONTINUE THE
CONVERSATION BUT WE BELIEVE THAT
OUR CUSTOMERS OUR CLIENTS ARE
VERY MUCH AT RISK WITH THIS TYPE
OF PROPOSAL. AND WE THINK THAT
NEEDS TO BE ADDRESSED THANK YOU
VERY MUCH.
THANK YOU SO MUCH PRESS AGAIN
EYES TO WHAT WE HAD TODAY IT AND
WANNA MAKE SURE THAT WE ARE ON
THE SAME PAGE TODAY'S GOAL. NOW
IS TO BE ABLE TO SHAPE THE ISSUE
UP PROVIDE BOTH OPPORTUNITIES
AND CHALLENGES.
BUT WE ARE GOING TO HAVE OUR
NEXT HEARING COMING UP ON JUNE
THIRTEENTH FOR WE'RE GONNA DO A
DEEPER DIVE OUT RELATED TO THIS
ISSUE.
AND WE WILL HAVE PANELS BOTH
PRO AND CON HEIGHT TALKING ABOUT.
THE SERVICE TAX
WE'RE ALSO GONNA WANT TO BE ABLE
TO HEAR FROM THE DEPARTMENT OF
TAX AND FEE MINISTRATION. OUT
BECAUSE WE WANT TO BE ABLE TO
HEAR ABOUT THE POTENTIAL
IMPLEMENTATION.
ONE OF THOSE OPPORTUNITIES
CANADA THE THERE WILL BE SOME
CHALLENGES A ABOUT POTENTIAL
IMPLEMENTATION OF THE TAX.
SO WHAT WE WILL BE DOING A
DEEPER DIVE A LENGTHY DISCUSSION
ON JUNE THIRTEENTH ON THIS ISSUE
AS WELL.
IN SHAPING THOSE PANELS.
THAT SAID WE'D LIKE TO BE ABLE
TO OFFER INDIVIDUALS WHO WOULD
LIKE TO BETTER SPEAK IN
OPPOSITION WE WELCOME YOU SIR.
UP PLEASE.
THROBBING ANY.
GOOD AFTERNOON MISTER CHAIRMAN
AND MEMBERS OF THE COMMITTEE.
THANK YOU FOR THE OPPORTUNITY
SPEAK.
ON BEHALF OF THE FAMILY
BUSINESS ASSOCIATION OF
CALIFORNIA OPENINGS GRANT DEARIE
I AND THE THIRD GENERATION OWNER
FAMILY OWNED NOR CAL BEVERAGE
COMPANY WAS SACRAMENTO AND
ANAHEIM WE OPERATE TO.
PLANTS ONE IN THE CITY IN ONE
AND ANAHEIM WE CONTRACT I COULD
MANY NATIONALLY KNOWN BRANDS.
YOU GUYS ARE VERY FAMILIAR WITH
IN THE MARKETPLACE THAT WE ARE
VERY.
MANUFACTURE ORINDA COMPANY WE WE
PRODUCE A PRODUCT FOR THE
ULTIMATE CONSUMER BUT WE ALSO
PROVIDE THE SERVICE A CONTRACT
PACKING. ABOVE OUR PRIMARY.
ROLES IS A COMPANY AND SO.
WE STRUGGLE WITH THE WHOLE
NOTION THAT HOW DO WE A PORTION
OF APPROPRIATE TAX ON THE GOODS
OF THE PRODUCT GOING THROUGH THE
SYSTEM THE RAW MATERIALS.
ALL THE INGREDIENTS ALL THE
LABOR.
AND THEN ARE ALL THE PACKING
THAT GOES ALONG WITH THAT
PRODUCT AND THAT IS PACKAGE THAN
WE DO SHIP AND INTERNALLY.
THROUGH OUR LOGISTICS SYSTEM AS
A COMPANY THAT HAS A SERVICE HOW
DO WE APPORTION A
FOR THAT PURPOSE IN THAT ROLE AS
OUR COMPANIES WELL. SECONDLY IS
FAMILY OWNED BUSINESSES OWNED
MANY COMPANIES DO NOT HAVE THE.
IT ADMIN OVERHEAD ADMINISTERED
OVER A PICTURE OF PROFESSIONAL
FEES WHICH AGAIN WOULD BE
SUBJECT TO THE TAX. I WOULD
ARGUE THAT.
THAT THIS IS A CONCERN THAT
THIS IS ULTIMATELY GOING TO BE
AYE ACOSTA BORN ON BY THE
CONSUMERS. AND THE TAXPAYERS OF
CALIFORNIA.
I THINK THAT MAYBE ARE MORE.
.
BUT OUR APPROACHES TO FLATTENING
OUR TAX AVOIDING THE TAX. BASE
OF AND TAKING THE VOLATILITY OF
THE TAX SYSTEM IN CALIFORNIA.
AND I BELIEVE WE AS A AS A
RESULT OF THAT BEING IN A VERY
SERVICE ORIENTED MANUFACTURE
SERVICE OR A COMPANY. THIS
PRESENTS A LOT OF COMPLEXITY A
LOT OF ADDITIONAL COST TO US.
THAT WILL ULTIMATELY BE PASSED
ON TO PICK TAXPAYERS THE STATE.
SO I RESPECTFULLY ASK FOR A NO
VOTE.
IN CENTER HERTZBERG WITH ALL
DUE RESPECT I WOULD PROPOSE
MAYBE WE CONSIDER LOOKING AT
WAYS TO CUT TAXES IN THE STATE.
RATHER THAN SHIFT TAXES AROUND
SHIFT THE BURDEN AND CONTINUE.
TO.
ENCUMBER BUSINESS OWNERS
AND THAT WAS IT DRIVE THIS
ECONOMY THE JOBS JOB CREATION.
AND AND ECONOMIC GROWTH.
IN THE FUTURE WE SHOULD BE
LOOKING AT WAYS TO ACTUALLY
REDUCE TAX THE TAX PERSON AND
CALIFORNIA THANK YOU VERY MUCH
YOU TAKING TIME TO BE HERE TODAY
SIR THANK YOU SO MUCH FOR
TESTIMONY. WELCOME SIR THAT A
CELL BE ONLY BE HEALTHY
CALIFORNIA GREENFIELD
ASSOCIATION CALIFORNIA C.
DISSOCIATION.
AB AND SEVERAL AG INTERESTS THE
ONLY INTERESTING ISSUE THAT
WOULD LIKE TO BRING FORWARD IS.
THAT TYPICALLY. BOUGHT GOODS
THAT ARE USED FOR THE PRODUCTION
OF FOOD.
ARE TYPICALLY NOT TAXED
AND THEN NOW ALL SERVICES GOING
INTO THAT SO WHICH
TRANSPORTATION.
THE THE THE. ENTITY THAT THE
CUSTOM FARMS ALL THOSE GUNS
WOULD AFFECT THE FOODS WITHOUT A
LONG STANDING POLICY THAT
PREVENTS THAT. TO NOT ALLOW FOR
THE SALES TAX ON FOOD AND NOW
THE SERVICES THAT GO INTO THE
PRODUCTION FOR IT WOULD BE TAXED.
YOU CAN SHOW ME HONEY.
ERIN. ERAGON BEHALF OF THE
CALIFORNIA DEFENSE COUNSEL THE
CALIFORNIA ESCROW ASSOCIATION
THE CALIFORNIA MORTGAGE
ASSOCIATION AND THE NOTE THAT
NATIONAL NOTARY ASSOCIATION
OPPOSITION.
MICKEY SO MUCH THANK YOU FOR
BEING HERE GOOD MORNING SIR.
THANK YOU MISTER CHAIRMAN
MEMBERS OF THE COMMITTEE MARC
CHRISTIAN WITH THE AMERICAN
INSTITUTE OF ARCHITECTS
CALIFORNIA COUNCIL IN OPPOSITION
ARE FOR MANY OF THE RECENT STATE
IF I MAY REAL QUICKLY. ON A ONE
OF THE WEEKLY DISCONNECT CHRIS
IT WILL INCREASE THE COST OF
DESIGN A PROJECTS INCLUDING
RESIDENTIAL PROJECTS THE BILL
DOES. EXEMPT RESIDENTIAL
CONSTRUCTION BUT NOT RESIDENTIAL
DESIGN. UPON AND WE BELIEVE THAT
THAT IS GOING TO BE.
MORE THAN THREE PERCENT WHEN
YOU HIRE AN ARCHITECT YOU GIVE
THEM THE FEES TAXES WILL BE PAID
ON THAT FEE THE ARCHITECT WILL
USE SOME OF THOSE FEES. TO HIRE
VARIOUS CONSULTANTS ENGINEER
STRUCTURAL MECHANICAL ELECTRICAL
ENERGY CONSULTANTS AND ALL THOSE
SUBSEQUENT BUSINESS TO BUSINESS
TRANSACTIONS WE BELIEVE WILL BE
SUBJECT TO AN ADDITIONAL THREE
PERCENT TAX THANK YOU. THANK YOU
SO MUCH SIR THANK YOU FOR YOUR
WORDS GOOD TO SEE CANCER THAT
YOU MISTER CHAIR. CHANDA'S THE
NATIONAL FEDERATION OF
INDEPENDENT BUSINESS NFIB
REPRESENTING OVER TWENTY
THOUSAND SMALL BUSINESS OWNERS
IN CALIFORNIA NINETY SEVEN POINT
TWO FIVE OF WHICH RECENTLY IN A
SURVEY SAID. THEY BE OPPOSED TO
SALES TAX AND SERVICE BECAUSE IT
WOULD BE A CRUSHING TAX INCREASE
ON SMALL BUSINESSES SO REMAIN
OPPOSED THANK YOU.
THANK YOU SO MUCH SIR WELCOME
BACK AND GOOD AFTERNOON. GOOD
CHAIR AND TO SEND HERTZBERG
HYDRO COOK FOR THE CALIFORNIA
MANUFACTURERS AND TECHNOLOGY
ASSOCIATION WE HAVE TO
RESPECTFULLY POSED THIS BILL.
THIS MEASURE.
WHOSE WONDER HOW IT COULD BE
TAX PEER MEETING ISSUE HITS THE
MANUFACTURING INDUSTRY
PARTICULARLY HARD UP BECAUSE AS
YOU MAY KNOW ONE END USER DEVICE
SUCH AS A AS YOUR CELLPHONE.
ISN'T.
PRODUCED BY ONE COMPANY BUT HAS
UP TO THREE HUNDRED COMPONENTS
EACH OF WHICH IS MANUFACTURED BY
THE PHONE COMPANY I'VE WHICH
ALSO HAS TO ACCOUNT FOR THE
SERVICES SO SOMEONE IS GOING TO
BE LEFT HOLDING THE BAG HERE. IF
NOT MIDSIZED MANUFACTURERS IN
THE END USER.
THANK YOU SIR.
GOOD AFTERNOON SIR REVENUE NOW
CHAIR MEMBERS AND SAY HERTZBERG.
REX W. HYMAN HAVE A CALIFORNIA
BUSINESS PROPERTIES AT STATION
ALSO RESPECT IN OPPOSITION BIG
TRYING.
YOU HAVE TO IMAGINE AN ARAB
THOUGH IT ON BEHALF OF THE
INDEPENDENT INSURANCE AGENTS
BROKERS OF CALIFORNIA AS WELL AS
THE CALIFORNIA PULLED SPOT SO
SHE ASIAN. PURPOSELY OPPOSITION
PICKY SO MUCH.
GOOD AFTERNOON SIR ADJOURN
SENATOR JERRY DOES BEEN ON
BEHALF OF SEVERAL SMALL BUSINESS
SERVICE PROVIDING ASSOCIATIONS
FOR THE REASONS ALREADY STATED
BY THE UP KEY OPPOSITION
WITNESSES. CALIFORNIA
ASSOCIATION A LICENSE
INVESTIGATORS CALIFORNIA
COALITION A TRAVEL ORGANIZATIONS
CALIFORNIA REAL ESTATE
INSPECTION ASSOCIATION CEMETERY
IN MORTUARY SATIATION CALIFORNIA
PROFESSIONAL FIDUCIARY
ASSOCIATION IN CALIFORNIA AND
THE METAL FINISHING ASSOCIATIONS
OF SOUTHERN AND NORTHERN
CALIFORNIA.
PROVIDE SERVICES AND ALSO
PURCHASE SERVICES AS WELL AS THE
GOOD SENATOR SUBJECT THE BILL.
THANK YOU SO MUCH SIR ANY DO
THAT WITHOUT NOTES A LIST OF
REASONS TO THINK YOU VERY MUCH
YESTER CHAIR MEMBERS OF THE
COMMITTEE JIMMY WERE WITH A
CALIFORNIA NEWS PUBLISHERS
ASSOCIATION. WHO WANT TO THANK
THE US SENATOR FOR ATTEMPTING TO
EXEMPT
ADVERTISING UP FROM THE SERVICE
TAX? UNFORTUNATELY THE CONDITION
UPON WHICH IT WOULD BE EXEMPT.
FALLS INTO HE BUSINESS MODEL
THE MOST NEWSPAPERS USED TO
BLOCK IT ADVERTISING AND SO.
IT WOULD POSE A SIGNIFICANT
THREAT TO OUR ABILITY TO
CONTINUE TO EXIST ON. RAZOR THIN
MARGINS IT IS RIGHT NOW WE'RE
COMPETING WITH THE DUOPOLY HOPE
GOOGLE AND FACEBOOK FOR CONTENT
THAT THEY REFUSE TO PAY FOR EVEN
THOUGH WE HAVE TO OR NEWSPAPERS
HAVE TO.
BUT THE PEER MEETING THE FACT
CAN'T BE UNDERSTATED AYE AS IT
APPLIES TO NEWSPAPERS.
WE'RE IN THE BUSINESS OF
GATHERING INFORMATION THAT WE
PAY FOR CONTENT WE PAY FOR.
CREATIVE WORKS BY OTHER FOLKS.
AND SO.
IT WOULD IT WOULD BE AN
EXISTENTIALIST THREATEN
NEWSPAPERS AND SO RESPECTFULLY
URGE A NO VOTE AS THE BILL'S
CONF CONSTRUCTED TODAY. THANK
YOU THANK YOU.
GOTTEN THERE ARE YOU GILL BARIUM
AB THE CALIFORNIA BROADCASTERS
ASSOCIATION WE REPRESENT THE
LOCAL RADIO TV STATIONS SERVING
YOUR DISTRICTS AND WE'RE OPPOSED
TO THE BILL TO THE ADVERTISING
IMPACTS THANK YOU SO MUCH.
GOOD AFTERNOON GREAT GOT DONE
SINCE COME BEHALF OF THE
STRUCTURAL ENGINEERS ASSOCIATION
OF CALIFORNIA.
MOST OF OUR SERVICES ARE
PROVIDED SUBCONTRACTED A.
SERVICE OUT IN OPPOSITION BANKS
EXXON.
GOOD AFTERNOON MY DEALER
REPRESENT THE CALIFORNIA
VETERINARY MEDICAL ASSOCIATION
KP PUBLIC AFFAIRS A BILL EXEMPTS
PET CARE SERVICES BUT IT DOES
NOT EXEMPT.
ACTUAL VETERINARY SERVICES LIKE
SURGERY AND NINETY PERCENT OF
THE AND MORNING PUBLIC THIS DO
NOT HAVE. A PET HEALTH INSURANCE
IT CLEARLY WOULD HAVE AN IMPACT
THANK YOU PICKING MIKE.
GOOD MORNING MA'AM RACKS CANOE.
JUNE JENNIFER TANNA HELL WITH
AARON REGION ASSOCIATES ON
BEHALF OF THE TAXI CAB PARA
TRANSIT ASSOCIATION OF
CALIFORNIA THE SAN DIEGO COUNTY
APARTMENT ASSOCIATION AND THE
CALIFORNIA CLUBS ASSOCIATION.
ALONG WITH AND.
ANDREA AND ALONG WITH THE
CALIFORNIA SOCIETY OF ENROLLED
AGENTS WE HAVE GRAVE CONCERNS ON.
THE ABILITY IF FOR FOLKS TO
COMPLY AND ALSO THE COST OF
COMPLIANCE AND. ENTERPRISE. BIG
YOU VERY MUCH FOR COMING TO
GETTING THEM GOOD AFTERNOON
JOANNE BETTENCOURT REPRESENTING
THE SECURITIES INDUSTRY AND
FINANCIAL MARKETS ASSOCIATION IN
OPPOSITION. MCCUE GRAPHING IN
SIR.
GOOD AFTERNOON MS CHAIRMAN.
MANY VS REPRESENTING THE
CALIFORNIA WHERE ASSOCIATION
WHICH INCLUDES BEING SEPARATE
AWAY YING YING PACIFIC RAILROAD.
IN THE SHORT LINES IN OPPOSITION
THANK YOU SO MUCH FOR BEING
YEARS COULD SING.
BUT AFTER THE GRIFFIN IS CHAIR
MEMBERS BERNIE A ROSTER OF THE
CALIFORNIA CABLE AND
TELECOMMUNICATIONS ASSOCIATION A
WE ARE PERHAPS THINK IF YOU
BRING.
GOOD AFTERNOON.
DECENT ELAINE WITH THE
CALIFORNIA BANKERS ASSOCIATION
IN OPPOSITION JASON.
GOOD AFTERNOON.
THE DUSKY HIM ON BEHALF OF THE
WINE INSTITUTE. OF THIS BILL IN
THE CONCEPT OF IT WOULD IMPOSE A
NEW MARRIED OF TAXES ON SMALL
WINERIES IN PARTICULAR WHICH
OUTSOURCE SO MANY OF THE
SERVICES INCLUDING BOTTLING
TRANSPORTATION. FULFILLMENT IN
FOREIGN LABOR CONTRACTING WE
BELIEVE THAT THIS WOULD PUT US
AT A PRETTY BIG COMPETITIVE
DISADVANTAGE WITH EMERGING WINE
REGIONS AROUND THE WORLD AND FOR
THAT REASON WERE OPPOSED. IF YOU.
THE AFTERNOON CORNELIUS BURKE
WITH THE BEAR COUNCIL WHERE
POLLS THANK YOU SIR.
GOOD AFTERNOON MEMBERS ROBERT
SPIEGEL CALIFORNIA FARM BUREAU
FEDERATION ALSO IN OPPOSITION
THINK YOU'RE BEING A RIVER. GOOD
AFTERNOON.
AND THIS TERRIBLE BILL ON BEHALF
OF UPS SO SKIP TO THE LAST
PARAGRAPH OF OUR LETTER. WHICH
INDICATES THAT THIS WOULD NOT
APPLY TO THE U. S. POSTAL
SERVICE WHICH IS OUR MAJOR
COMPETITOR AND SOME WERE OPPOSED.
THANK YOU.
CHAIRMAN MEMBERS ALL ROCKERY
CALIFORNIA LIFE SCIENCES
ASSOCIATION WE ALSO REPRESENT
MANY OF THE SERVICE PROVIDERS
THAT HELP SUPPORT BY THE LIFE
SCIENCES INDUSTRY THE CITY
CALIFORNIA THEREFORE WE HAVE TO
OPPOSE THE BILL. THANK YOU
GOVERNOR.
BUT A CLEAR TO SEE IF WE HAVE
ANYONE ELSE WHO MAY BE OPPOSED
OR HAVE CONCERNS BUT NOT
FORMALLY OPPOSED.
PLEASE MR WOLF. MR CHAIRMAN
MEMBERS ARE GOOD AFTERNOON DAVID
WOLFE THE HOWARD JARVIS
TAXPAYERS ASSOCIATION AND WE ARE
OPPOSED BECAUSE WE HAVE YET TO
SEE A DYNAMIC REVENUE ANALYSIS
THAT QUARTERLY AND UNEQUIVOCALLY
SHOWS THAT THIS BILL IS IMPACT
REVENUE NEUTRAL. IT SHOULD BE
NOTED THAT WE'VE SPOKEN WITH THE
AUTHOR AT LEAST A HALF DOZEN
TIMES OVER THELAST FOUR YEARS
ON THIS BILL AND WE'RE CERTAINLY
OPEN TO THOSE CONVERSATIONS
CONTINUING. ASK FOR NO VOTE FOR
NOW THAT. HE GETS SO MUCH.
LAST CALL FOR THOSE WHO ARE
OPPOSED OR WHO MAY BE SQUISHY
ARE ON THE BILL.
IT'S.
RIGHT WE'RE GONNA BRING IT BACK
ONE MORE TIME ON PROCESS WE WILL
NOT BE TAKING A VOTE HERE TODAY.
AT TODAY'S GOAL IS AGAIN TO HAVE
AN INITIAL DISCUSSION ON THIS
IMPORTANT ISSUE. THE POTENTIAL
OPPORTUNITIES AND CHALLENGES WE
WILL BE HAVING OUR NEXT HEARING
ON JUNE THIRTEENTH WE'RE GONNA
BE DOING A DEEPER DIVE. WITH A
PANEL OF EXPERTS ON A VARIETY OF
ISSUES A INCLUDING UPBRINGING IN
THE DEPARTMENT OF TAX AND THE
ADMINISTRATION COULD BE CHARGED
WITH THE ADMINISTRATION. OF THIS
POTENTIAL NEW PROPOSAL.
WOULD LIKE TO NOW TURN OVER TO
THE COMMITTEE BUT TO BE ABLE TO
SEE IF WE HAVE ANY QUESTIONS OR
COMMENTS BUT BEFORE WE DO IT
LIKE TO BE TO SEE SENATOR
HERTZBERG. HAVE ANY ITEMS IN
REGARD TO THOSE WHO MAY BE
OPPOSE.
WITHIN TWO MINUTES TO BE ABLE
TO GIVE A QUICK SYNOPSIS OR
REBUTTAL AND THEN IF IT WORKS
FOR THE COMMITTEE WOULD LIKE ME
TO TURN IT OVER TO BELIEVE WE
HAVE CENTER MORE LOCLE KICK US
OFF.
SO I THINK HERTZBERG ANY IT BUT
I'M ENCOURAGED BY THE OPPOSITION.
BECAUSE THEY JUST THEY JUST IT
IT JUST DID. A LOT OF WHAT
PEOPLE THAT CAME IN A POSE LIKE
THE FEW PEOPLE OF RD SPOKEN TO.
AGO I DON'T KNOW THAT THAT MEAN
YOU ANALYZE A NORTH AMERICAN
INDUSTRY CLASSIFICATION SYSTEM
UNFORTUNATELY THAT I WANT TO
WRITE IN SIMPLER TERMS LEDGE
COUNCIL REQUIRED THIS APPROACH.
IT'S HARDER TO UNDERSTAND WHEN
YOU DEAL INTO IT THE PAID THE
BOOK IS NINE HUNDRED AND SIXTY
THREE PAGES LONG. THAT THIS IS
BUILT ON THE FEDERAL GOVERNMENT
THERE'S A WHOLE HISTORY TO THIS
NUMBER ONE TO. IT'S A KNEE JERK
ó MY GOD IT'S A TAX IT'S LIKE
YOU'RE LOOKING AT ONE SIDE THE
LEDGER YOU NOT LOOK AT THE OTHER
THE HOSPITALS WILL. LOOK A LOT
OF THE STUFF IS IS THE GUY I
WOULD GO THROUGH AS WE ANALYZE
IT BUT LIKE THEY BY MILLIONS OF
DOLLARS OF EQUIPMENT THAT THEY
PAY TAX ON.
IF THEY LOOK AT THEIR LEISURE
AND YOU GET YOUR TRACK YOU
TREASURE YOU SEE A FALL WAS EVER
CONTROLLERS IN ON THOSE NUMBERS.
YOU CAN LOOK AT HOW MUCH THEY'RE
SPENDING VERSUS WHAT THE IMPACTS
ARE. THAT JUSTICE REQUIRES
ANALYSIS THAT WE INDUSTRIES WILL
TAKE A DEEPER DIVE ON WE GOT A
TO TO BE ABLE TO UP TO TAKE A
LOOK AT THAT NUMBER ONE NUMBER
TWO IS. THERE ARE FORTY NINE
OTHER STATES THAT HAVE SALES TAX
ON SERVICES OKAY WE ARE NUMBER.
FOR A.
THE GOOD STUFF THIRTY SOMETHING
OF THE STATES THAT ARE OUT THERE
WITH OTHER SERVICES A JUST BY
ORDERS OF MAGNITUDE. LEADING.
JUST.
HUNDRED SIXTY NINE SERVICES IN
HAWAII GO TO DELAWARE HUNDRED
FORTY SIX IOWA HUNDRED FOR
WISCONSIN EIGHTY TWO. IT'S CRAZY
INTERIOR DESIGN PRIVATE CLUB
MEMBERSHIP QUITE OPERATE VIDEO
GAMES
LOBBYING AND CONSULTING IN
PENNSYLVANIA WE HIRED CALIFORNIA.
.
SIX POINT FIVE PERCENT WERE TO
MAKE A SPECIAL EXCEPTION BECAUSE
MAKE SO MUCH MONEY ON THIS BILL.
BUT THE.
YOU KNOW TAX RETURN PREPARATIONS
ACCOUNTING DATING SERVICES IN
WASHINGTON
S. POINT FIVE PERCENT. BARBER
SHOPS AND BEAUTY PARLORS AND IN
NEW MEXICO FIVE PERCENT.
GROOMING IN NEW JERSEY SEVEN
PERCENT
TEN POINT THREE FIVE PERCENT FOR
AMUSEMENT PARKS ALL EVERYONE OF
THESE THINGS IS ABUSING HIS IS.
ON THE PERSONAL SIDE IS EXEMPT
IN CALIFORNIA AND I JUST WANT TO
SAY THE PYRAMID IN DISCUSSION
WE'VE REALLY BEEN THOUGHTFUL
ABOUT THAT IF THEY'RE SUDDENLY
MISS THAT'S NOT THE PURPOSE OF
WHAT WE'RE TRYING TO DO HERE IN
THE WHOLE SUBCONTRACTORS
ARGUMENT. THAT'S BEEN MADE WHEN
I LOOKED AT THE LARGER DYNAMIC
OF WHAT THE THEMES WAR TO OPPOSE
SO. THE AND AND REALLY ANALYZING
THE IMPACT OF THE OTHER SIDE OF
THE TRADE FOR PURPOSES OF BOTH
THE COMPANY THEY'LL FORGET.
YOU SERVICES ARE QUESTION HOW
MUCH YOU ACTUALLY SPEND THEY
MADE OF THE COURT. YOUR AT IT
EQUIPMENT INTENSE BUSINESS
YOU'RE PAYING TAX ON GOODS
THERE'S AN ACCOUNTING HERE THAT
NEEDS TO BE LOOKED AT AND I
THINK IT'S PEOPLE DEAL. DEEPER
INTO IT BEYOND JUST KNEE JERKING
SAYING OH MY GOD IT'S A TAX I
THINK YOU'RE GONNA GET A EL
BETTER DISCUSSION ON THE CITY OF
ANY THOUGHTS TO ADD TO THAT. TO
BRIDGET BUDGET JUST VERY QUICKLY.
AND AND MAYBE THIS IS SOMETHING
WE SHOULD TALK ABOUT MORE IN THE
SUBSEQUENT HEARING BUT.
A LOT OF THE CHALLENGES RELATED
TO APPORTIONMENT AND SO FORTH.
TOM I THINK WHEN WE WERE.
WORKING ON THIS PUTTING TOGETHER
THE INTENT WAS TO MAKE SURE THAT.
THAT TAXES ARE BEING PAID WHERE
THE BENEFIT OF THE SERVICE THE
CURSE OF THE BENEFIT OF THE
SERVICES BEING OCCURRED IS
OCCURRING IN CALIFORNIA. IT'S A
BIT OF THE TAX THAT THE BENEFIT
OF THE SERVICES IS.
OCCURRING OUTSIDE OF THE STATE
WE DON'T WANT TO TAX.
WE WANTED TO ENCOURAGE COMPANIES
THAT SELL ON NATIONAL AND
INTERNATIONAL MARKETS TO LOCATE
HERE SO WE DIDN'T WANT TO UNDULY
PUNISHED THEM BY SAYING IF YOUR
SERVICES PROVIDED. HERE YOU'RE
GONNA BE TAXED WE GO TO THAT
DESTINATION BASE AND IT DOES
CREATE.
A CHALLENGES RELATED TO
ASSIGNMENT AN APPORTIONMENT BUT
THESE ARE NOT NEW CHALLENGES
THESE ARE CHALLENGES THAT
CALIFORNIA HAS WRESTLED WITH.
HIM APPORTIONING INCOME UNDER
THERE OF CORPORATION TAX IN
CALIFORNIA. AND SO I THINK WE
TRIED TO TO HAVE MODEL ARE. A
APPROACH ALONG THE LINES OF THE
WAY THE F. T. BE A PORTIONS
SALES ARE SIGNED SALES PER
PURPOSES OF REPORTING
MULTINATIONAL. MULTI STATE
COMPANY INCOME.
SO I THINK AGAIN I COULD WE JUST
WANT TO EMPHASIZE THAT YES THERE
ARE SOME CHALLENGES WE RECOGNIZE
IT. BUT A LOT OF WHAT WE WERE
DOING IT IS.
TRYING TO ENCOURAGE COMPANIES
THAT ARE HERE TO LOCATE HERE. BY
BASING THE TAX ON WHERE THE
SERVICE IS RECEIVED RATHER THAN
WHERE IT IS PRODUCED.
THANK YOU SO MUCH FOR SWINGS IT
THINK IT WAS HERTZBERG WE NOW
LIKE THAT TURNED OVER QUESTIONS
OR COMMENTS WILL KICK IT OFF
WITH THE GOOD SENATOR FROM MARCH
CANNABIS MORLOCK THANK YOU
MISTER CHAIR THANK YOU SOONER
HERTZBERG.
THANK YOU FOR ALL YOUR YEARS OF
WORKING AND NOT TRYING TO FIGURE
OUT THIS A PRETZEL IS A PRETZEL
IT IT'S REALLY AMAZING.
.
YOU JUST MENTIONED JUST HOW FAR
FROM THE TOP YOU JUST MENTIONED
THE STATES THAT HAVE SERVICE
TAXES AND AB ANALYZE THE STATE'S
CONNECTICUT NEW YORK NEW JERSEY
HAWAI. I. COLUMN LOSER STATES.
BECAUSE THEY'RE AT THE BOTTOM.
BUT THE OF THE CHART WHEN YOU
LOOK AT THEIR KAFIRS THEIR
COMPREHENSIVE ANNUAL FINANCIAL
REPORTS I'M. A LITTLE CONCERNED
ABOUT FOLLOWING THAT KIND OF
MODEL. I'M ALSO A LITTLE
CONCERNED THAT WE ALREADY HAVE
THE HIGHEST TAX RATES IN JUST
ABOUT EVERY CATEGORY.
SO IT'S TWELVE THIRTY FIVE AND
IN YOU SEEMED LIKE YOU UPSET
JUST ABOUT EVERYBODY IN THE ROOM.
I THINK YOU BOTH NEED A SNICKERS
BAR THAT'S AN AREA HIGH DAY. IF
YOU AND I GOTTA.
WITH GOOD REASON.
.
I'VE ONLY BEEN HERE THREE YEARS
BUT THERE'S BEEN SO MUCH
MOVEMENTS I WANNA START OFF WITH
HER. THAT ACCOMPANIES WE JUST
HAD IN DECEMBER DOUBLE FOR THIS
CASE DON'T LOOK AT THIS.
AND.
WE JUST HAD IN THE SUMMER THE
FEDERAL TAX
REFORM.
WE DON'T EVEN KNOW WHAT THE
IMPACTS ARE YOU HAD QUOTED
SOMEBODY LET ME JUST QUOTE. OUR
STATE CONTROLLER SHOULD PUT THIS
IN HURDLE EACH.
A LEAD OFF PAGE ON THE
COMPREHENSIVE ANNUAL FINANCIAL
REPORT SHE WROTE THE FEDERAL TAX
MEASURE LIKELY WILL HAVE A
DEVASTATING IMPACT ON OUR STATE
BUDGET.
WHICH MAY MEAN LESS MONEY FOR
BOB OF ALL THE SERVICES I DON'T
KNOW WHERE SHE COMES UP WITH
THAT AND WHAT ANALYSIS SHE'S
DONE I HAVEN'T QUITE SEEN. TE
IMPACT YET BUT BUT TWENTY
EIGHTEEN WE'RE GONNA SEE THE
RETURNS.
AND APRIL TWENTY NINETEEN WILL
KIND OF SEE WHAT'S REALLY GOING
ON.
BUT WE'VE HAD THE CANNABIS.
IMPLEMENTATION WE'VE HAD PROP
FIFTY FIVE WHICH RENEWED PROP
THIRTY THE INCOME TAX ON OUR
WEALTHY. WE'VE HAD SENATE BILL
ONE WHICH NOW INCREASES THE GAS
TAX ON EVERYBODY WHICH IS
EXTREMELY REGRESSIVE.
WE'VE SEEN SENATE BILL TWO WHICH.
TAXES REAL ESTATE DOCUMENTS FEES.
WE'VE SEEN CAP AND TRADE.
SO I'VE JUST BEEN AMAZED AT HOW
MANY MOVING PARTS.
I'VE JUST SEEN IN MY FEW MONTHS
HERE IN SACRAMENTO AND SO I
GUESS THE FIRST AREA LIKE TO
TALK ABOUT IS JUST.
YOU KNOW THE TIMING OF YOUR
PROPOSAL.
BECAUSE NOW OR YOU HAVE A.
MAY REVISE OF FRIDAY THAT SAID
THAT WE HAVE ALMOST NINE BILLION
IN REVENUES IN EXCESS OF
PROJECTIONS.
MAYBE THAT MEANS IT'S THE RIGHT
TIME TO DO A NEW TAX
REP REFORM MAYBE IT DOESN'T SO I
JUST MAYBE YOU JUST START OFF
WITH THE TIMING WAS SO MUCH.
IMPACTING SO MANY IN SUCH A
SHORT PERIOD TIME.
BUT I PUSHED A VERY THOUGHTFUL
ANSWER APPRECIATED ON. THAT IT
IT IT YOU KNOW MY JUDGMENT IS IN
EVERYTHING THAT I DO IN
GOVERNMENT. IF YOU WANT TO DO IT
WHEN YOU'RE NOT IN THE EMERGENCY
THAT YOU GENERALLY DON'T HAVE
THOUGHTFUL DECISIONS WHEN YOU'RE
IN EMERGENCY YOU TO SOME
CHALLENGE OF WHATEVER IT MIGHT
BE. WE DON'T GENERALLY MAKE GOOD
DECISIONS THAT REFORM WORLD. AND
THESE KINDS OF THINGS AS I
SUGGESTED TAKING YEARS IS A LOT
OF NUANCE I MEAN I'M TELLING YOU
IF WE SEE IF WE SAT DOWN WITH
EACH ONE OF THESE VARIOUS
ADVOCATES WHO HERE TODAY. I
THINK JUST IN THE FEW THAT I
HAVE.
WE WILL ALLAY SOME OF THE FEARS
WE GO THROUGH IT. AND ADDED IT'S
IT'S HARD WORK IT'S HARD WORK SO
SO I POINT NUMBER ONE WITH
RESPECT TO THE TIMING IT'S
ALWAYS GOOD TIMING TO WORK ON
THE TOUGH CHALLENGES WHEN YOU'RE
NOT UNDER THE GUN YOU HAVE
PEOPLE TO BE THOUGHTFUL ABOUT IT
SO I'M OK WITH THAT. IT MAKES IT
HARDER BECAUSE PEOPLE IN
GOVERNMENT UNFORTUNATELY IN MOST
DECISION MAKERS ONLY FOCUS ON
THE WORLD'S FALLING APART ON MY
GOD WE'RE GONNA DO A WE GET A
FIX THIS THING THAT OVERCOME
NATIONAL SECURITY AND UNKNOWN
ONE OR WHATEVER IT IS.
YOU SEEN THE ON THE FLORIDA
HOUSE SO MANY ISSUES TALKING
ABOUT THINGS WELL IN ADVANCE
THAT'S COME MY PHILOSOPHY.
TWO. I THINK YOUR POINT IS ABOUT.
THESE OTHER ISSUES IN TERMS OF
CHANGES SO MUCH OF WHAT WE'VE
DONE WE'VE HAD THIS CONVERSATION
CENTER MORLOCK.
IT KIND OF A PIECEMEAL APPROACH
AND WE NEED KIND OF A MORE
COMPREHENSIVE THINK ABOUT SOME
OF THE STUFF AND HOW WE GOT TO
DO WITH TAX REFORM THAT YEAH YOU
KNOW I'VE TAKEN IS.
MISTER WALTER SAYS.
YOU KNOW SMALL STEP.
THAT WHICH IS TRUE BUT I'M
TRYING TO KIND OF GET IN THE
GAME OF THINKING ABOUT THIS.
IF YOU STANDARDS STAND WHAT
WE'RE TRYING TO DO TURNING THE
SHIP IS VERY HARD BUT THE TO
LINING AND EVERYBODY GETS UPSET
BECAUSE THEY'RE UNCOMFORTABLE
WITH CHANGE I GET IT. AND
EVERYBODY WILL JUST LOOK AT THE
ADVERSE SIDE OF CHANGE ON THE
POSITIVE SIDE OF CHANGE
MANUFACTURES APPEAR ó WHAT
SECOND DUE TO THE MAIN IF THEIR
SALES WHEN THEIR PRICES GO DOWN.
WHAT WHAT IS THE IMPACT ON THE
RETAILER'S WHAT IS THE IMPACT OF
THE CAR DEALERS?
YOU NO WHAT ABOUT ALL THE PEOPLE
WE EXEMPTED THEY'RE NOT HERE
SAYING THANK YOU VERY MUCH.
THAT'S ONE OF THE PROBLEMS YOU
HAVE AN GOVERNMENT THE PEOPLE TO
GET PAID TO ARGUE THESE THINGS
ARE THE PEOPLE THAT ARE WORRIED
TO DISGUISE FALLING APART JUDGE
JOHN IS DIFFERENT. SO IT'S AN
IMPORTANT DISCUSSION IT'S HARD
BUT IT'S IMPORTANT AND SO YES
ALL THESE OTHER THINGS ARE
BASICALLY SHORT TERM STOP GAPS
FOR A BUNCH OF OTHER
ARCHITECTURAL PROBLEM SO TO
SPEAK OF HOW OUR TAX STRUCTURE
WORKS. SO I THINK IT'S NOW THE
PERFECT TIME TO HAVE THE
DISCUSSION. FARM YET I THINK
THAT BY TAKING THE OF THE THE
THOUGHTFUL APPROACH THE
CHAIRMAN'S TAKING IT GIVES US AN
ABILITY TO NOT JUST SAY OKAY I'M
A DEMOCRAT WE HAVE THE MAJORITY
WE'RE GONNA JAM THIS THING WE'RE
GONNA JAM IT THROUGH
APPROPRIATIONS. WE'RE GONNA MOVE
IT TO THE FLOOR EVERYBODY'S
GOING TO HAVE HEARTBURN AS THIS
THING HAPPENS THAT'S NOT THE WAY
TO DO BUSINESS AND STOP TE WAY
LEGISLATURE. IN ALL CONTEXTS
THERE'S TIMES WE THOSE THINGS
HAPPEN BECAUSE OF EMERGENCY OR
SOME OTHER PROBLEM BUT I DON'T
THAT'S NOT WHAT THE CONTEXT OF
THIS IS. AND THAT'S WHY SAID WE
WANT TO FORMALIZE THIS WE
STARTED WITH IT WITH WITH WITH
THE THINKING OF VERY SMART
PEOPLE WHAT'S OUR WATER OUR
COURSE CORRECTIONS WERE OP. WE
MOVED FROM THERE TO A LISTENING
TOUR THAT REALLY GAVE OUT
ABILITY TO INFORM I DID PUT THIS
BILL OUT EARLIER BECAUSE THE WAY
THIS BUSINESS WORKS IS YOU DAHLE
YOUR COMMENTS IN THE WRONG PLACE.
IN SOME INTEREST GROUPS AFFECTED
BY THE KARMA. AND THEY YOU KNOW
GO CRAZY OVER UNDERSTAND THAT
BECAUSE IT'S THEIR JOB A MONTH
OBJECTED ANYBODY WHO ADVOCATES
FOR THEIR PEOPLE.
BUT.
MY HOPE WAS TO GET TRACTION WITH
THE GOVERNOR EARLIER AND THAT WE
COULD GET HIM TO NEGOTIATE SOME
OF THIS STUFF AND NOT PUT IT I
JUST DECIDED TO DUMP IT ALL IN.
HAVE THE DISCUSSION LET'S GET TO
IT. AND SEE IF WE CAN MAKE SOME
MOVEMENT SET THE STAGE HAVE SOME
OF THIS DISCUSSION PART OF THE
NEXT GOVERNOR COMING IN.
TO HELP TRY TO MOVE AND MOVE
THIS ALONG SO I WOULD SAY I
WOULD SUGGEST TO YOU THAT YES
THERE'S SOME ARGUMENT. ABOUT
WITH RESPECT TO THESE OTHER
TAXES AND OTHER ISSUES THAT
COMPLICATED NO QUESTION. BUT IT
IS CLEARLY THE PERFECT TIME AND
PLACE.
TO HAVE A CONVERSATION LIKE THIS.
WHY WOULD A FIRM YOU FOR?
TAKING THE POSITION OF.
A METHODICAL APPROACH TO A
MASSIVE TAX BILL.
SO I THANK THE CHAIRMAN FOR THE
SAME THAT WE'RE GOING TO HAVE
HEARINGS.
BECAUSE WE DO RUSHED THROUGH
THINGS AND. WE DO DEMAND TOO
MUCH AND WE THROW AT YOU KNOW ON
PEOPLE PRETTY QUICKLY THAT YOU
START TO WONDER HOW MANY OR
SPILLS.
CAN THE PATIENT SWALLOWING A
SHORT PERIOD OF TIME AND THAT'S.
BEEN ONE OF MY CONCERNS ANOTHER
CONCERN IS IF HIS TO APPEND THAT
FINALLY BUT THE ONE THING AGAIN
UNTIL TO SAY IS. THE ISSUE HERE
IS FIRST THE TAXES ONLY BE TO BE
YESTERDAY INCIDENTS.
B. SECONDLY ITS IT'S ALSO
PRODUCTIVE ALL.
I'M CHIU WHAT WHAT HAPPENED TO
US IN CALIFORNIA IS WE LOST A
LOT OF DUCT ABILITY THE
FLEXIBILITY TO FUND.
CREATIVE WAY TO TRY TO PUT SOME
OF THE BURDEN WE HAD OUR STATE
TAX THAT WE'RE DEDUCTIBLES. SO
FEW IN THIRTEEN POINT ONE
PERCENT BRACKET ON TAXES.
AND YOU COULD DEDUCTIBLES THAT
HAVE PAID EIGHT PERCENT IT'S NOT
SO BAD NON PAID THIRTEEN POINT
ONE NET NET NET.
VASE MAYOR I GOT A PROBLEM.
THIS IS DEDUCTIBILITY THAT'S
NUMBER ONE AND TWO EVERYONE'S
BUSINESSES BY STEP THE DEBATE
AND SELF TAX ON GOODS IS A LOT
OF BUSINESSES IN CALIFORNIA THAT
COULD BENEFIT FROM IT WILL DO
THE DIAGNOSTIC ON IT. BUT
THERE'S TWO SIDES TO THE TRADE
THE END OF THE DAY. YOU COULD
SAY IT'S A LARGE TAX INCREASE OR
IF IT'S NOT NEUTRAL AND EVEN
LESS BECAUSE OUT OF STATE PEOPLE
ARE PAYING IT. YOU COULD ARGUE
THAT IT'S A SIGNIFICANT BENEFIT
IN WOMAN WILL DO THAT ANALYSIS
DO THE HOMEWORK IF WE COME UP
WITH A BETTER IDEA SO BE IT.
BUT I DON'T I OBJECT TO THE
NOTION THAT THIS IS A MASSIVE
TAX INCREASE.
THAT'S A POLITICAL STATEMENT IT
THE REALITY IS IT MAY NOT BE TO
PEOPLE YOU DON'T I MEAN CRISP
ARE. SENATOR.
I CAN'T HAVE ONLY ONE.
TROUBLE ADELPHIA AGAIN THAT YOU
HAD THAT WASN'T MY QUESTION.
BUT YOU COULDN'T LIVE THERE BUT
I HAD ADMITTED BED DEDUCTIBILITY
IS SORT OF A UNIQUE KIND OF
ARGUMENT THAT MAYBE I DON'T BUY
IT SAYS SOMEONE WHO HAS A SEAT
WAS THIS PRACTICE IS A CPA. I'D
RATHER HAVE THE CASH
THEN TO PAY FOR SOMETHING AND
THEN GET A TAX DEDUCTION BECAUSE
MY NET IS.
SO MUCH BETTER IF I DIDN'T HAVE
TO PAY FOR.
I AM IT'S I MEAN I WOULD JUST
MAYBE DEBATE THAT A LITTLE BIT
BUT. I'M CONCERNED ABOUT. YOUR
ORIGINAL INTENT AND THAT WAS
THIS HOLISTIC APPROACH TO.
VOLATILITY AND SO YOU'RE YOU'RE
STARTING.
AT A SERVICE TAX.
WHEN WE KNOW THAT ALCON IN THE
ROOM IS THE PERSONAL INCOME TAX
TO BE AYE TEA. AND WE KNOW THAT
ONLY A SMALL HANDFUL OF PEOPLE
IN THE STATE PAY HALF OF THE
INCOME TAX.
AND THAT'S WHERE THE VOLATILITY
IS AND MAKE THEY CAN THEY CAN
MOVE.
RIGHT AT THEY CAN LEAVE THE
STATE IT'S HAPPENED IN NEW
JERSEY AND CONNECTICUT WE'VE
SEEN. WEALTHY PEOPLE JUST SAY A
HALF FLORIDA IS BETTER OR WORK
AND SO.
I I'M WONDERING WHY YOU DROPPED.
THE INCOME TAX
COMPONENT YOUR WORD WERBER
REDUCING SALES TAX I'M WONDERING
WHY YOU DIDN'T.
ATTACKED THE INCOME TAX TWO
REASONS.
FIRST IS THAT MORE THAN TWO IS I
GUESS BUT THE FIRST IS THE
CONSTITUTION PROTECTS THE HIGH
RATES THAT WAS DECIDED WAS A
PROP FIFTY FIVE IS IT CALLED.
BUT AFTER EXTENDED THAT THAT THE
HIGH RATES OF THIRTEEN POINT ONE
PERCENT SO REQUIRE A VOTE OF THE
PEOPLE.
BUT WHICH PRESENTS A CHALLENGE.
AT THAT RATE TO.
BY BY THE IDEA IS THAT ANYTIME.
THE THE THE WATCH WORD TO WHAT
WE'RE DOING HERE IS MAINTAINED
CALIFORNIA'S PROGRESSIVITY.
WE WANT TO IMPROVE THE SYSTEM
MODERNIZE THE SYSTEM MAINTAIN
ITS PROGRESSIVITY. WHAT I
MENTIONED IN MY INITIAL
PRESENTATION WAS?
THAT IF YOU REDUCE THE TAX ON
SUPER WEALTHY PEOPLE
HYPOTHETICALLY.
YOU YOU AND YOU INCREASES
SERVICE TAX
YOU NEED TO CREATE A HUGE BUFFER.
TO BE ABLE THEIR RETIREES LOOK
AT THE TAX INCIDENTS ON PEOPLE
WHAT IT APPLIES TO EVERYBODY.
AND SO WOULD ONE OF OUR MODELS
AS MUCH AS NINE BILLION DOLLARS
THAT WAS REQUIRED. AND SO THE
pIDEA OF EVEN EVEN TOUCHING THAT.
WITH PROGRESSIVITY AT THE
CORNERSTONE.
WHAT WE'VE DONE HERE IS WE'VE
INTRODUCED THE NOTION OF SERVICE
TAX AGAIN IS BETWEEN TWENTY ONE
AND TWENTY NINE SERVICE ALREADY
TAXED IN CALIFORNIA GIFT
WRAPPING WELDING COMPUTER
CONSULTING A BUNCH OF HINGS
ALREADY? ATTACKS IN CALIFORNIA.
DEBT AND BY THE WAY DID THIS
NOTION ABOUT HOW COMPLIANCE IS
RIDICULOUS YOU CAN DOWNLOAD.
AMONG THESE FORTY NINE STATES
YOUR TECH TAX ON SERVICES JUST
LIKE YOU CAN THAT EVERYONE IS
THINGS THAT LOOKED AT THE STUFF
FOR NINETEEN BUCKS. AT THESE
VARIOUS OFFICE STORES YOU CAN
BUY THESE PROGRAMS AND PEOPLE DO
THIS ALL THE TIME IT'S ALL
TECHNOLOGY DRIVEN AND THIS ON
THE EVEN FOR FREE I WAS GONNA.
BRING SOME TODAY ON WHAT
HAPPENED FORGOT I GUESS BUT BUT
SO IT'S NOT A HARD PROBLEM IN
THE SCHEME OF THINGS A PORTIONS
FOR BIG BUSINESSES THERE BUT
THAT ALREADY EXISTS IN THE
CORPORATE AREA.
SO THE OTHER REASON SO THAT THE
THE ISSUE OF THE CONSTITUTIONAL
ISSUE. THE ISSUE OF
PROGRESSIVITY WE ARE NOT MOVING
OFF OF THAT.
BENCHMARK THAT'S A CORNERSTONE
ELEMENT. AT WHAT WE'VE BEEN ABLE
TO DO IS TO INTRODUCE THE NOTION
OF SERVICE TAX WISE IT IMPORTANT
WHAT YOU SAW ON THE ILIO CHART
HERE. ARE A FEW WHO SOUGHT BUT
THE RATE OF GROWTH IT'S
HARMONIZING THE TAX STRUCTURE
WITH WHERE THE ECONOMY IS GOING
WHY TAX STUFF THAT'S GOING IN
THIS DIRECTION. VERSUS THIS
DIRECTION BILL THE STATE ON ITS
FUTURE NOT IT'S PAST SO AND WE
DOING THAT IN A REVENUE NEUTRAL
WAY. THAT HAS IMPACTS THAT
PROTECTS PEOPLE AGAINST THE
ADVERSE CONSEQUENCES OF THAT
WASHINGTON AT TAX REFORM.
.
STILL BUSINESSES ARE PAYING YOU
TO THIS NOTION OF THIS THIS TAX
INCREASE IS NOT ALWAYS A BAD
BECAUSE YOU'RE NOT LOOKING AT
THIS.
IN TERMS OF THE GOOD SIDE BUT
YOU'RE NOT LOOKING AT THE SIDE
OF THE BENEFITS THAT THEY
RECEIVE FROM THE FEDERAL
GOVERNMENT THE QUESTION TO ANY
BUSINESS PERSON IS HOW MUCH OF
MY PAY AND. NOT WHO GETS IT AND
pPROPOSAL YOU'RE PAYING LESS.
AND WE'RE COURT WERE BEGINNING
TO PUT THE STATE OBJECTED RE
WERE BEGINNING TO MOVE IN THE
DIRECTION OF THE FUTURE WE'RE
DOING IN A PROGRESSIVE WAY.
THAT'S THE REASON WHY WE TOOK
THIS COURSE.
SO I I HEAR.
TO.
DIFFERENT THINGS WILL FROM WHAT
YOU'RE SAYING OKAY BIG WORD
YOU'VE BEEN USING IS REVENUE
NEUTRAL
YES.
BUT YOU YOU WANT TO GO INTO A
GROWTH AREA.
WHICH IS SERVICE.
SO I'M I'M TRYING TO.
GET MY.
HEAD AROUND THAT I I DON'T SEE
YOU BEING REVENUE NEUTRAL.
BECAUSE WHY WOULD YOU GO THROUGH
ALL THIS.
HEADACHE.
CREATION ON YOUR YOUR YOUR JOB
JUST RIPPED THE WHOLE APPLE CART.
WHAT TO BE NEVER REVENUE NEUTRAL
AYE AS I'M?
I'M KIND OF. CAN YOU HELP ME
WHAT AM I MISSING NO NO IT'S
IT'S
IT IS THE THE CHALLENGE OF
WORKING WITHIN THE SYSTEM.
I CAN GO OUT AND RAISE MONEY AND
RIGHTED BALLOT INITIATIVES AND
PULL IT AND GET IT PASSED
AND THE BILL. A BALLOT BOX
BUDGETING BALLOT BOX TAX
REVENUES WE'VE DONE HOW MANY
TIMES HAVE WE SEEN THAT.
AND I'D PULL THIS STUFF PRETTY
WELL.
AND DETERMINE HOW THE LOCAL
ALTERNATELY CREATE THIS OUT A
LAW THAT WOULD WORK.
THE IDEA IN THE LIST TO USE THE
LEGISLATIVE BRANCH FOR ITS
INTENDED PURPOSE.
AND AT THIS POINT THE IDEA IS TO
IS TO GET MOVING ON THE CONCEPT
OF READ A RE ORIENTING THE TAX
STRUCTURE AND DOING IT REVENUE
NEUTRAL WAY IN A WAY THAT
BECAUSE YOU COULD BE.
PEOPLE US I A REVENUE NEUTRAL
PROVISION.
I GOT MONEY COMING BACK TO
PEOPLE OUT OF GOVERNMENT
TECHNICAL EXCEPT FOR THE COST OF
ADMINISTERING THE SYSTEM AND I
GOTTA BE TELLING ME THE THE THE
THE BARN IS BURNING DOWN BECAUSE
YOU'RE RAISING THE MOST MASSIVE
TAX INCREASE IN THE HISTORY OF
CALIFORNIA. IT ALWAYS GETS
COUCHED IN THAT AND WHAT I'M
TRYING TO DO IS TO MOVE AWAY
FROM THE INCENDIARY LANGUAGE AND
GET TO THE TRUTH THAT'S OUR
PURPOSE FOR THESE HEARINGS.
THAT'S WHY I'M TRYING TO FOCUS
ON THIS AND SO I'M TRYING TO
TAKE THAT OFF THE TABLE. AND TRY
TO MOVE IN THE DIRECTION
UNFORTUNATELY HAVE TO DO IT. IN
THESE INCREMENTAL MATTER IF YOU
WANT TO WORK WITHIN THE WALLS OF
THIS PLACE.
IF I WANT TO WORK WITH
INCENDIARY LANGUAGE AND COME UP
WITH STUFF THAT YOU CAN DO
TELEVISION ADS AND. GET
EVERYBODY UPSET AND GET STUFF
PASSED THAT'S ONE THING BUT IF
YOU CAN REALLY TRY TO FIGURE IT
OUT WORK THE NUANCE IN THE
DETAIL. AND PART OF GOING
REVENUE NEUTRAL IS TO BE ABLE TO
BE THE POSITION I CAN HAVE THAT
CONVERSATION AND HOPEFULLY
EVERYBODY NOT SCREAMING AND
YELLING TO SAY OH MY GOD IT'S
NOT A GIGANTIC TAX INCREASE.
WHAT IS IT IS A REDISTRIBUTION
OF MODERNIZATION?
TO LIVE TO TO REALLY ALIGN THE
GROWTH OF CALIFORNIA CONSIST AS
TAX STRUCTURE WITH THE GROWTH OF
CALIFORNIA. LOOK YOU PUT IT ON
THE BALLOT YOU'D BE RIGHT.
YOU'D WIND RIGHT BECAUSE YOU'RE
SAYING THE BUSINESSES WILL PICK
OUR SERVICE TAX PUSH AND YOU
WILL GET A TWO PERCENT REDUCTION
AYE YOUR SALES TAX. AND IT JUST
SO HAPPENS THAT THE POOR
OUTNUMBERED THE. THE BUSINESS
OWNERS AND SO THAT'LL PASS
PROBABLY TWO THIRDS RIGHT.
I DON'T KNOW WHAT'S PASSED MY
PAY GRADE BUT THE POINT WILL BUT
IT'S DIVISIVE RIGHT IT'S IT'S
SERVED ITS ITS WHY THIS
DISCUSSION HAS TO BE AROUND. HOW
DO WE MAKE IT WORK NOT?
HERE'S THE PROBLEMS
WHICH NOBODY COMES WHEN THE NEED
TO HIRE ME MY OLD JOB THEY'LL
COME AND TELL ME ALL THE
PROBLEMS.
WHAT'S THE SOLUTION.
FIX IT FOR ME.
WHAT'S THE FIX
IF THERE'SA PROBLEM BRING THIS
SOLUTION WITH AND LET'S FIGURE
IT OUT.
RIGHT I MEAN IF YOU'RE
PHILOSOPHICALLY AGAINST ANY OF
THIS STUFF AT ALL.
BECAUSE YOU FUNDAMENTALLY THINK
THAT ALL MY GOD GOVERNMENT IS
ONLY ALWAYS STICKING THEIR NOSE
IN THE TENT BUT THE STORES I GET
THAT THAT'S YOUR. RIGHT TO HAVE
AN OPINION ABOUT WHAT THAT.
BUT THAT'S NOT WHAT I'M DOING
HERE IS AN HONEST ATTEMPT.
TO START THE DIALOGUE INTEREST
IN THE ENVIRONMENT I CAME AND
TOOK THIS JOB BECAUSE I RESPECT
HIS PLACE AND THAT'S WHAT I'M
TRYING TO DO.
WELL SEE NOW I'M TRYING TO FIX
IT TO SENATOR AND. AND AND I'VE
GOT A C. E. O. MAGAZINE THAT'S
TELLING ME THAT CALIFORNIA IS
NUMBER FIFTY.
FOR DOING BUSINESS AND IT'S BEEN
FIFTY F. PLACE FOR MORE THAN
THIRTEEN YEARS AND I'M SITTING
HERE THINKING HOW DO I MOVE THE
DIAL SON TRYING TO. ASK YOU
QUESTIONS CIVIC OVERNIGHT OF
THIS WILL THIS HELP BADLY THAT
WILL HELP US GET TO NUMBER FORTY
BECAUSE I ACCEPT THE GUILT WE
DON'T LOOK LOOK LOOK ME E. IT'S.
ANYTIME YOU HAVE A SUPPLY AND
DEMAND PROBLEM. IT'S A PAIN IN
THE*.
GO BUY A HOUSE THAT'S TWO
THOUSAND SQUARE FEET. IN
CINCINNATI.
AND ASK THE PRICE OF THAT PERSON
HOUSE IN MALIBU THAT'S TWO
THOUSAND SQUARE FEET IT'S SUPPLY
AND DEMAND. THE CHALLENGE YOU'VE
GOTTEN CALIFORNIA IS SUPPLY AND
DEMAND.
ALL OF THESE OTHER DIMENSIONS
WITH WITH WITH HOUSING ALL THESE
OF THE COSTS ARE PART OF THAT.
THE TRUTH OF THE MATTER IS BY I
DON'T SAY IT'S NOT A PAIN IN THE
* TO DO BUSINESS HERE BUT THE
TRUTH IS.
LAST TIME I LOOKED WE KEEP
MOVING UP ON THE LATTER IN TERMS
OF THE GROWTH IN SIZE OF THIS
ECONOMY NOW THERE ARE DEEP DEEP
DEEP PROBLEMS WITH RESPECT TO
POVERTY AND NOT TAKE IT AWAY.
BUT IT'S IT'S HEAT BY JUST
ASKING FOR A FAIR DIAGNOSTIC
WHEN WE LOOK AT THOSE NUMBERS
AND I THINK THAT WHEN YOU LOOK
AT THE TOTAL OF TAX. GETTING TAX
COSTS. EVERYONE OF THOSE CHARTS
I'VE LOOKED AT FROM ALL THESE
ORGANIZATIONS LOOKED AT YOUR
SALES TAX RATE.SO WE'RE GOING
TO GO WAY UP WHEN WE GO FROM
EIGHT PERCENT TO SIX PERCENT ON
A SALES TAX RATE WHEN THEY LOOK
AT BURDEN. AND WE'LL SEE WHAT
THAT WILL BOOST THE TRUTH WILL
BE THE TRUTH WE'LL SEE WHAT THAT
LOOKS LIKE.
WITHIN JUST A FEW FINAL
QUESTIONS MISTER CHAIR. THEM
FIRST IS SINCE WE'RE GOING TO
TAKE COSTA MESA SALES TAX RATE
FROM EIGHT POINT TWO FIVE TO.
SIX POINT TWO FIVE WHAT PREVENTS.
THIS STATE OR THE CITIES OR
ANYONE ELSE FROM ALLOWING BACK
THAT TWO PERCENT.
FOR WHATEVER TO PAY FOR THEIR
PENSIONS OR WHATEVER HOW DO WE.
HOW DO WE KNOW IT I WONDER FOR
HOW DO WE PREVENT THAT WE GET IT
WILL GAIN BUT THAT WE LOSE IT
JUST WOULDN'T NEXT BILL A THIRD
QUESTION BUT CONSTITUTION
CALIFORNIA PROTECTS IT? THAT DID
ALL THERE IS IS THAT WHAT WE'RE
DOING IS.
COLIN PUT IN IT SCREW NOW PUT
IN THE THE THE FIRST PAGE OF THE
ANALYSIS WHAT PORTIONS OF STATE
GETS WERE REDUCING THE STATE
PORTION. THE LAW THAT ALLOWS OR
REQUIRES WE'VE HAD A LOT IN THIS
COMMITTEE WOULD PEOPLE ASSN FOR
EXCEPTIONS TO INCREASE THE
PERCENTAGES ARE OVER THE STATE
NUMBER. THAT THE THAT THE ONLY
WAY TO CHANGE IT IS A TWO THIRDS
VOTE RIGHT TO CHANGE HOW MUCH
MONEY THE STATE CAN TAX ON THE.
OTHER TECHS WERE REDUCING THAT
NUMBER BUT AND SO THE IS IS IT
IS IT FROM MY UNDERSTANDING ALSO
HAVE IT WRONG THAT THAT I I
THINK I MIGHT IN THIS IS IS THAT
THEY'RE NOT GOING TO BE ABLE TO
DO THAT I THINK IT'S FAIR
QUESTION. AND THAT'S THE POOL
PURPOSE INITIALLY WE DRAFTED
THIS WE CAN ALSO DO A COMMAND BY
A COMPANION. A CONSTITUTIONAL
AMENDMENT THAT LIMITED THE
ABILITY OF ANY LOCALS AND SAID
THEY CAN'T. INCREASE THEIRS AT
ALL RIGHT BUT I THINK WE'RE IN
PRETTY GOOD ROUNDS BUT WILL
ANALYZE IT'S A FAIR QUESTION
THAT'S NOT A PURPOSE
WHAT DO I DO IT THAT'S WHY WE
THINK. WHO MAYBE THERE WILL BE A
TAX INCREASE BECAUSE?
DOWN THE ROAD SOMETHING ELSE
FILLS THE VACUUM AND THAT'S.
SO JUST A COUPLE QUICK QUESTIONS
ABOUT AND I.
GO TO LIKE THERMOELECTRIC
ACADEMY AND WRAPPED A SWING TO
DO A QUICK TIME CHECK AS WE HAVE.
A BUDGET SUB TO.
DOUBLE BE UTILIZING AT THIS ROOM
AT APPROXIMATELY ONE THIRTY.
AND IN ITS CAN BE BETTER THREE
TO FOUR HOUR HEARING FOR THEM
TODAY.
AND SO I JUST WANT TO A DO GUY
AND THAT ALTERNATE INTERRUPT IS
WHEN DO A QUICK TEMPER. SCREEN
WILL RETURN OVER HE VICE CHAIR
EXERCISING MORE HOW NO FIND.
WHEN I WAS SUPERVISOR I DROVE
MY OWN PERSONAL CAR. I WAS GIVEN
A AN AUTO ALLOWANCE.
SO IF I WENT TO THE DEALERSHIP
TO GET REPAIRS.
IT IS SET UP BUSINESS CAR
BECAUSE I GET ENOUGH AND I AM
NOW AUTO LOANS OR. PERSONAL CAR
BECAUSE IT'S.
NOT A COMPANY UNITED COUNTY
PROVIDES THEM ARE. IT IS
EXAMPLES EXCEPT WE BUSINESS OR
NON BUSINESS WEEK SENDS ALL THE
AUTO REPAIRS WE WORRIED ABOUT
INSURANCE AND MOST INSURANCE
COMES VERY TAX UNDER SEPARATE
CONSTITUTIONAL A PIECE WE TOOK
THEIR OUT ANYWAY. AND THEN THE
ISSUE ABOUT AUTO REPAIRS AND
AUTO DEALERS SWUNG THE
CONVERSATIONS I HAD THEIR
EXEMPTS AND IT WHETHER TO BE TO
BE OR A CONSUMER CAR. WE JUST
TOOK ABOUT.
WE TOOK ABOUT BEGIN WHERE WITH
THE INSTANCES WHERE. PEOPLE
WOULD BE AFFECTED CHILD CARE
HOUSING HOMES
WE DID ONE DISTINGUISH OF THE
REAL ESTATE INDUSTRY BETWEEN
RESIDENTIAL HOUSING THAT YOU
MIGHT OWN VERSE OTHERWISE. AGAIN
TRYING TO MAINTAIN PROGRESSIVITY
REDUCE PLACES WHERE THE
INCIDENTS WAR ON A DAY TO DAY
BASIS
TO TO TO KEEP IT AS PROGRESSIVE
AS POSSIBLE SO THERE'S IT'S
EXEMPT. NOT A QUESTION
THANK YOU SOONER HERTZBERG THANK
YOU MISTER CARROLL ALSO HAVE THE
REST OF MY QUESTIONS FOR JUNE
THIRTEENTH IF I'M NOT IN A
BUDGET COMMITTEE SOMEWHERE HERE
IN THE CAPITAL.
EVERY PIECE UNITS WERE LOCKED IN.
HOW DILIGENCE ROCKIES IN
COMPARED FOCUS IN A FIRED UP
PRETTY TO GO SO I JUST WANT TO
THANK YOU VERY MUCH FOR SUMMER
LUCK AS?
AS ALWAYS MY GOODNESS WHAT
RICHARD OVER THE VICE CHAIR VICE
CHAIR WYNN FORESHORES ME THINK
THANK YOU MISTER CHAIRMAN AND
SENATOR HERTZBERG AYE I DO
APPRECIATE. THE THOUGHTFULNESS
IN THE TIME THAT YOU'VE BEEN
TAKING.
TO TO WORK ON THIS BILL I KNOW
THE AND SINCE WE BOTH STARTED
HERE.
THOSE FOUR YEARS NOW. AND I'VE
I KNOW YOU MAY ANSWER SOME OF
THE QUESTIONS.
.
BUT I I JUST. I MEAN I KNOW YOU
WE TOUCH SPACE WE TOUCH ON THE
SALES TAX IN THE SURPLUS.
IN LIGHT OF ALL THAT IS IT
REALLY NECESSARY I MEAN WE'VE I
MEAN YOU'RE LOOKING TO THAT
RIGHT NOW WE'RE LOOKING AT. A
SALES TAX RECEIPTS OF UP TO
SEVEN HUNDRED FORTY FOUR MILLION
DOLLARS.
CORPORATE TAX REVENUES ARE UP
OVER TO PUT FIVE BILLION I MEAN
IS THERE A BROKEN SYSTEM.
YES.
THE B. PIPE UNDER THE HOUSE IS
BROKEN THE WATER HAS NOT BUBBLED
UP YET TO THE LIVING ROOM IT
WILL HAPPEN BUT DON'T YOU ON A
COLLISION COURSE.
BUT DON'T YOU THINK THOUGH I
MEAN.
THERE REVENUE FLUCTUATION IS
DRIVEN BY THE STATE'S DEPENDENCY
ON INCOME TAXES.
I MEAN RAISING CELLS TAX.
WILL IT FIX THIS PROBLEM.
YES.
VOLATILITY HAS SOME IMPACT ON IT
NOT AT THE LEVEL THAT WE WANT
BUT IT IS I MENTIONED IN THE
ANSWERS SENATOR MORLOCKS
QUESTION. WHAT WITH THIS IS A
STEP FORWARD SON AS BIG AS WE
WANTED TO TAKE BORE MODIFYING IT
BASED UPON TRYING TO LE KEEP
PROGRESSIVITY? PROTECT THE
MIDDLE CLASS GET SOME CASH IN
THEIR POCKET.
PAN THERE WERE ADVERSELY
AFFECTED BY THE FEDERAL ATTACK
LEGISLATION. AND STILL GIVE A
MOST OF THE BENEFIT FROM THE
FEDERAL TAX LEGISLATION TO SEE
CORPSE AND THE PASS THROUGH
ENTITIES.
SO WE THINK IT'S PRETTY I YOU
KNOW E. IT IT BECAUSE THE HEART
PRINTERS THAT'S ABUNDANTLY CLEAR.
BUT IT ALSO I THINK GETS TO THE
HEART OF OF A SIGNIFICANT
PROBLEM AND PUT BEGINS TO PUT US
ON A TRAJECTORY IN MY JUDGMENT.
THAT'S IMPORTANT FOR THE GROWTH
OF CALIFORNIA AS THE ECONOMY IS
NOW EIGHTY PERCENT SERVICES.
WELL I.
I MEAN I'M. AYE AYE YOU SEE THE
BILL AS REALLY HURTING
EXPRESSION THIS MALL BUSINESSES.
AND. EVEN MORE WHEN YOU KNOW THE
FACT THAT A LOT OF THEM CONTRACT
FOR THE SERVICES. MEAN YOU'RE
LOOKING AT BUSINESSES PENA WHAT
FORTY PERCENT OF THE CELLS AND
THE TAX AND USE TAXES IN
CALIFORNIA. I JUST THINK
TARGETING THEM WHICH IS
ADDITIONAL COSTS ON SERVICES AYE
DADDY WOULD JUST DEFINITELY PUT
THEM EXPRESSION THE SMALL
BUSINESSES.
BUT THEN IT AT A HUGE
DISADVANTAGE ANYWHERE THERE
ALREADY AT A DISADVANTAGE IN
CALIFORNIA BEING HERE. BUT I
THINK THIS IS JUST GOING TO ADD
TO THAT BURDEN AND I EIGHT YEARS.
I DON'T KNOW THE BENEFIT WAYS
OUR.
THE YOU KNOW.
BID THE NEGATIVES.
AND IF IF I CAN.
MISSED. ó ACTUALLY ONE FOR A
QUESTION LAST QUESTION FOR.
IT WE KNOW WHAT THE COSTS IS FOR
THE STATE TO MINISTER THIS.
AT THIS TIME.
WELL INTO TWENTY ISSUES THAT
THEY MENTIONED IN THE OPPOSITION
BOMB. YOU KNOW WE ESTIMATE IT'LL
PROBABLY BE IT IS ABOUT FOURTEEN
BILLION DOLLARS IN REVENUE THAT
COMES IN UNDER ESTIMATES AND
FOURTEEN BILLION DOLLARS A GOES
OUT WE THINK.
BROADLY SPEAKING ITALY BUT THE
HUNDRED AND FIFTY MILLION
DOLLARS A YEAR. ROUND NUMBERS
ADMINISTER THIS PROGRAM.
HOW?
A VISITOR IT LIKE I SEE HUNDRED
YOU. SAID HE'S A HUNDRED OF A
FAMILIAR.
NO ONE PERCENT.
AND CAN I ASK I DON'T KNOW IF I
DON'T KNOW IF THERE'S TO HEAR
AND. I I THINK I'M JUST CURIOUS
BECAUSE IT MEANS THERE IS TALK
ABOUT A FOR THE HOUSING IT THIS
WILL AFFECT AFFORDABLE HOUSING
IN THE BUILDING AND CONSTRUCTION
OF IT NOTES EXEMPT.
IS THERE A RESIDENTIAL
PROPERTIES EXISTS RESIDENTIAL IS
THERE ANY GROUPS OUT. MAY I ASK
HER ABSOLUTELY.
I MISS YOU. TOO MAY COME FORWARD
ESTIMATED NINETY THREE
INTRODUCING YOURSELF AS WELL AN
ORGANIZATION.
THERESA MAY REPRESENTING THE
CALIFORNIA TAXPAYERS ASSOCIATION
APPROACHING OUR ARCHITECT OF
REPRESENTATIVE IS NOT HERE BUT
IN OUR DISCUSSIONS AND OUR
ANALYSIS OF THE BILL.
ALTHOUGH THE CONSTRUCTION ITSELF
SO PUTTING THE HAMMER TO THE
NAIL TO BUILD A HOME IS EXEMPT
FROM THE SERVICE TAX ALL OF THE
OTHER DESIGN SERVICES THE
INSPECTION SERVICES THE
PREPARATION THE LAND. ALTHOUGH
THE SERVICES THAT ARE CONTRACTED
AS PART OF THE BUILDING
CONSTRUCTION ARE NOT EXEMPT AND
ACCORDING TO THE ARCHITECTS THAT
IS WHAT WOULD INCREASE THE COST
OF HOUSING AND THEREFORE MAKE
CALIFORNIA'S HOUSING LESS
AFFORDABLE.
HE'S GOT THE ANSWER. YEAH THAT
THE TRUTH ABOUT FIRST OF ALL I
DON'T THINK THAT IT WHICH IT WAS
ACCURATE I THINK AND IT IN AND.
IF IT WOULD THE IDEAL WAS DESIGN
IS NOT THE WORD IS MISSING THE
WORD. AND YOU WANT TO SAY A WORD
IS MISSING THIS IS MY POINT
ABOUT THE HONEST DEBATE HERE BUT
I'M TRYING TO ENGAGE IN THIS
DISCUSSION SO INE TAKEN
AMENDMENT AT THE WERE DESIGNED
IT CHANGED. NUMBER ONE NUMBER
TWO WHO IS.
THEN LET'S HAVE A DISCUSSION TO
SAY THAT ALL OF THE MATERIAL.
WHAT'S THE COST OF LABOR WHAT'S
THE COST OF THE SERVICES FOR THE
AFFORDABLE.
YOU'RE PAYING SALES TAX ON.
NOT ON ON ALL GOODS ALL THE
PRODUCTS THAT LUMBER THAT THIS
THE EVERYTHING.
THAT JUST WENT DOWN BY TWO
PERCENT ALL I'M ASKING IS TO
RETAIN SENATOR MORLOCKS
ACCOUNTING SKILLS. GO DO A
HOUSING PROJECT AND LOOK AT IT
LOOKOUT WINS OR LOSES I
GUARANTEE YOU THEY WANNA
SERVICES THAT ARE GOING TO GO IN
THERE AND BE TAXED. NOT DESIGNED
NOT TO THE TEXAS AYE THAT'S JUST
IT'S A.
THAT IDEA OF SAYING ITS NOT PART
OF IT BUT WE DIDN'T USE THE WORD
DESIGN IS NOT. AN ISSUE IT'S IT
IT MISSES THE UNDER TYING
ARCHITECTURE OF THE IDEA. BUT
RUN THE NUMBERS HOW MUCH MONEY
DO THEY SPEND AND NOW YOU JUST
REDUCE THEIR EXPENSES TO PERCENT.
SO EVER VIGILANT ONE SIDE OF THE
TRADE.
LOOK AT THE BALANCE SHEET AND
TELL ME WHAT THE NUMBERS ARE
THAT'S ALL I'M ASKING IN.
WE THINK IT WE THINK IT BENEFITS
IF YOU'RE BEFORE WRONG WILL.
WORK ON IT.
DIGITAL.
THANK YOU.
SLASH LAST QUESTION MISTER
CHAIRMAN OKRA. THE. YEAH I
MENTIONED HOW I REALLY BELIEVE
THAT THIS IS GONNA HURT THE
SMALL BUSINESSES.
I'M I'M JUST CURIOUS LIKE WHAT
ARE THE STEPS THAT THE SELLERS
OF THE SERVICES MUST UNDERTAKE
TO COMPLY WITH. YOUR BILL.
WELL IT'S A FIRST OF ALL SMALL
SMALL BUSINESS DO ANYTHING THE
COMPLETELY EXEMPT YOUR NAIL
SALON IF YOU'RE A BARBER SOME
MIKE THAT YOU MAKE ON HOW HE
GOES HUNDRED HUNDRED THOUSAND
AFTER COMPLY WE JUST. TAKE YOU
OUT OF THE SYSTEM DAY SECONDLY
WHAT YOU DO IS.
YOU LITERALLY GO TO THE STORE
FOR TWENTY BUCKS AND YOU BUY A
PROGRAM THAT EXISTS FOR ALL
FORTY NINE OTHER STATES THAT TAX
ALL THE THINGS I TALK TO YOU
ABOUT THAT THEY TAX HERE'S A
BOOK. LISTING OVER THREE
THOUSAND THINGS THAT OUR TAX BY
THE THOSE STATES ARE GIVEN SOME
SMART GO HROUGH IT. ABOUT WHAT
THE IMPACTS IN CALIFORNIA ARE.
BUT.
YOU FILL OUT THE DEAL WHEN
SOMEBODY COMES IN AND BUY
SOMETHING IF IT'S CONSUMER IT'S
A CONSUMER. IF IT'S IF IT'S
BUSINESS AND THEY THEY THEY THEY
BASICALLY THE BOTTOM LINE IS
THIS.
IF YOU WANTED TO DUCK DID YOU
PAY THE TAX IS PRETTY SIMPLE WE
HAVE A MECHANISM JUST LIKE YOU
HAVE A RESELLER PERMIT. IF I GO
TO A STORE AND I WANT TO BUY A
PART THAT'S FOR MY PRODUCT I'M
SELLING I GIVE MY RESELLER
NUMBER. THE RESELL PERMIT ICED
UP A COMPANY I GIVE MY RESELLER
PERMIT THEY TAKE DOWN THE NUMBER.
AND THEY DON'T CHARGE ME SALES
TAX SAME KIND OF THING WILL DO
HERE.
IF I'M A LAWYER AND YOU WALK IN
MY OFFICE DO STATE PLAN.
AND IT'S PERSONAL I GO AND SAY
NO TAX.
MR MONARCH HAS DE BILL IS
BUILDING A SKYSCRAPER. AND I GOT
A DRAFT THE PURCHASE AND SALE
AGREEMENT.
IS TAXABLE.
THE GOVERNMENT COMES IT ON ITS
MISSION HERTZBERG YOU TOOK IN A
MILLION DOLLARS YOU'RE TALKING
THE ONLY REPORTED TAX IN HALF A
MILLION. WILL USE MY CERTIFICATE
OF EXEMPTION FOR YOU THAT SAYS
THIS WAS PERSONAL AND YOU DIDN'T
HAVE TO COLLECT THE TAX.
IT'S A PRETTY SIMPLE SYSTEM
AGAIN VERYTHING THAT WE'VE
TRYING TO DO HERE. I UNDERSTAND
THAT YOU KNOW PEOPLE RAISE
QUESTIONS I GET THAT HAS BEEN
MODEL ON EXISTING STRUCTURE OF
HOW. IF TB BOARD OF EQUALIZATION
CURRENTLY WORKS AND HOW THE
DEPARTMENT OF FINANCE CURRENTLY
WORKS IN AN EFFORT TO GET PAST
THE MECHANICAL ARGUMENTS.
OF HOW HOW GOVERNMENT WORKS AND
WILL MAKE THIS THING WORK.
THANK YOU.
I THINK IT'S MUCH BETTER VICE
CHAIR AT GRATEFUL BUT FOR THE
COMMENTED THINK IS IN A MORE
LOCK.
I HAVE SEVERAL. QUESTIONS IN
COMMON SET UP SAID HERTZBERG I
HAVE BEEN GOING OVER I'D SAY
OVER THE LAST WEEK.
BUT FOR TODAY'S PURPOSES.
WHAT I WHERE I WOULD LIKE TO BE
ABLE TO GO IN WHERE I HAD SEEN
HERTZBERG I TALKED?
A LEADING INTO TODAY'S HEARING
OVER THE LAST SEVERAL DAYS.
IS TO BE ABLE TO HAVE THIS NEXT
HEARING IN CENTER MORE LOCK.
MADE A COMMENT EARLIER TODAY
IMPAIR PHRASE IN AND HOW WE CAN
DO THAT DEEPER DIVE ON THE ISSUE.
AND WHAT I AM COMMITTED TO IS
TO BE ABLE TO GO DEEPER INTO
THAT AND BRING ALL VOICES AT THE
TABLE.
SO PROPOSING A PROCESS AS WE
MOVE FORWARD HERE JUNE
THIRTEENTH WOULD BE THAT AT
FIRST HEARING ON THAT DEEPER
DIVE
TODAY. A SENATOR HERTZBERG SHAPE
THE ISSUE.
OUR IN REGARDS TO WHERE HE WANTS
TO BE ABLE TO GO OUT AND.
WHERE HE WAS FOCUS ON WHAT HE
BELIEVES IS MORE FAIR AND
EQUITABLE TAX SYSTEM FOR THE
CITY CALIFORNIA? IN CARE THEY
WERE THE TREND HAS BEEN. WE
HEARD FROM OPPONENTS ABOUT THEIR
CONCERNS NOT WITH THE PROPOSAL.
AND ON WE ARE GOING TO INVITE
THEM TO BE ABLE TO BE AT THE
TABLE.
AT OUR NEXT HEARING FOR NEXT
HEARING JUNE THIRTEENTH ABOUT
WILL BE INVITING THOSE WHO ARE
IN SUPPORT. OF THOSE WHO ARE
OPPOSED TO BE ABLE TO TAKE PART
AS WE SEE TYPICALLY IN PANELS
AYE AT THAT AN INFORMATIONAL
HEARING. BEGIN WILL ALSO ASK THE
DEPARTMENT OF TAX AND FEE
MINISTRATION TO BE TO COME
FORWARD.
THAT SAID NOT SURE HOW DEEP
THEY'RE GOING TO BE A DIVE INTO
THIS AS WE ALL KNOW THERE NEED
TO BE A TO WORK WITH THE
ADMINISTRATION ABOUT HOW FAR
THEY CAN GO. A IN A PUBLIC
SETTING.
BUT YEAH I THINK IT'S GONNA BE
IMPORTANT BEARD HAVE BEEN THE
TABLE THAT'S OF THAT SENATOR
HERTZBERG IS ONE IT IS WELL.
BOB SO. BEGIN WE'RE NOT TAKING A
VOTE ON THIS BILL TODAY I WANTED
TO TURN IT OVER TO SENATOR
HERTZBERG AND THEN END IT WITH
THIS I JUST WANT TO SAY THANK
YOU TO SENATOR.
FOR YOUR WILLINGNESS TO BEAR
TACKLE SOME OF THE TOUGHEST
ISSUES THAT FACE OUR STATE.
I AND YOU HAVE NEVER SHIED AWAY
FROM THE FIGHT.
I AND.
GRATEFUL FOR YOUR WORK ON AND
AT THIS IS ONE THAT WE'RE GOING
TO BE TALKING ABOUT FOR QUITE
SOME TIME.
HERE AND COTTON LET YOU DO YOUR
AT CLOSING COMMENT SIR AND AGAIN
THANK YOU SO MUCH.
JUST VERY BRIEFLY THANK YOU TO
THE MEMBERS THANK YOU FOR BEING
HERE THANK YOU FOR LISTEN AND
THANK YOU FOR.
PROCESS IT'S HARD.
YOU KNOW IT'S LIKE TO SIT HERE
AND EVERYBODY REACTS THE WAY
THEY REACT. BUT THE CAUSES JUST
WE ARE TRYING TO FIGURE IT OUT.
IS A FAIR QUESTIONS I DON'T
OBJECT TO ANY AS LONG AS THE
APPROACH IS TO FIGURE SOMETHING
OUT.
BECAUSE I AM CONVINCED THAT.
YOU KNOW USER DOWNTURN TOURISM
OF THE PROBLEM.
ARE YOU KNOW WE'RE GONNA HAVE
CHALLENGES AND OUR JOB IS TO GET
AHEAD OF THOSE THINGS AND THAT'S
WE'RE TRYING TO DO.
IF IF SOMEONE COULD PERSUADE US
THAT SERVICE TAX IS NOT THE WAY
TO GO GIVEN THE GROWTH OF THE
STATE. WILL ENTERTAIN IT. BUT
THE UP THE IDEAS HAVE A FAIR AND
OPEN DISCUSSION ABOUT HOW TO FIX
THINGS AND HAVE GO IN A
DIRECTION THAT WORKS.
BUT FOR WHAT WE'RE TRYING TO DO
SO THANK YOU FOR YOUR PATIENCE
THANK YOU FOR TAKING SO MUCH
TIME AND GIVEN ME SO MUCH TIME
TO FRAME THIS.
AND AYE WAY STARTED WHICH IS.
REALLY TRYING TO FRAME IT IS THE
GOVERNOR SUGGESTED FOR THE NEXT
GOVERNOR AND TO BE ABLE TO START
TO REALLY SCRUB THESE ISSUES
PASSED THE HARD QUESTIONS BRING
AS MANY FOLKS WHATEVER IT IS
MAYBE STELIOS OFFICE OR WHATEVER
THE CASE MAY BE. TO HELP REALLY
EXAMINE THIS DEEPER QUESTION
ABOUT WHAT WE DO. BEEN IN A
RELATIONSHIP BETWEEN THE PEOPLE
AND BUSINESSES OF CALIFORNIA AND
ITS GOVERNMENT AND HOW WE FAIRLY
ATTACKS THEM IN A PROGRESSIVE
INTELLIGENT WAY. THAT IS HELPFUL
FOR CALIFORNIA IN EVERY RESPECT
I LIKE TO JUST IF YOU HAVE ANY
THOUGHTS YOU'D LIKE TO ADD TO.
PICK MY WOULD CERTAINLY OKAY I
THANK YOU VERY MUCH THANK YOUR
COMMITTEE MEMBERS AND WILL.
WILL BE BACK FIGURES TO ATTEND
A RETURN TO THE FLOOR FOR.
EQ I JUST WANNA JUST TO CLARIFY
IDEA TO SENATOR HERTZBERG. NO
DISRESPECT I RESPECT YOU AND
LOVE YOU.
I'M IN THE MIDDLE OF
APPROPRIATIONS.
MEMBER MEETING SIDES WANTED ALL
I WAS DISSING ON TV. AND.
PAID USE WANT YOU KNOW I WAS
THERE A.
HOW MAY BILLS DON'T
APPROPRIATIONS I DON'T KNOW WHAT
WE'RE GOING TO MEET LATER?
BUT I JUST WANT TO LET HIM KNOW
THAT YOU KNOW WE. YOU KNOW I
DON'T MEAN ANY DISRESPECT WHEN
IBM HOUSE VERY GRACIOUS SHOULD
UNDERSTAND THINK SO MUCH OF OUR
IN AGAIN THANK YOU TO ALL THE
GIPSON HERTZBERG THANK YOU TO
ALL THOSE WHO. WERE HERE TODAY
IN SPENT TIME OR OPPOSE THE BILL
WE LOOK FOR TO WORK WITH YOU
HERE IN THE WEEKS AND MONTHS TO
COME.
MEMBERS WHO WHAT WE'D LIKE TO
BE ABLE TO DO IS.
ASK MISS LANE CHESTERMERE TO
OPEN UP THE ROLE. ON TWO
DIFFERENT BILLS FOR GOING TO
START WITH THE ITEM NUMBER THREE
ON ORIGIN DEBT THAT SENATE BILL
TWELVE THIRTY SEVEN THIS IS A DO
PASSED APPROPRIATIONS CHAIR BODY
NO. CURRENT VOTE IS ONE TWO.
THE SAME GESTURE RECALL VOTE
PLEASE HERNANDEZ AYE HERTZBERG.
LARA. NO LARD NO MORE LOCK.
GEORGE. ITEM. ITEM NUMBER THREE
SB TWELVE THIRTY SEVEN BATES.
THE ARMY HAS ON.
MORE LIKE MORE LIKE I.
YOU HAVE TO TO.
THREE
NOW TO TO. GET HERTZBERG DIDN'T
SAY ANYTHING QUICKLY THIS BILL
MYSELF.
YEAH.
STICKERS YEAH.
TWO THREE.
OH YEAH.
THE MEMBERS TO AT WE ARE GOING
TO THAT.
CALL THIS ONE'S. THE.
MOTION FAILS.
THE BILL WILL NOT BE GETTING OUT
TODAY AT WOULD SOMEONE LIKE TO
BE A REQUEST RECONSIDERATION.
BUT WE HAVE A REQUEST FOR
RECONSIDERATION IN THAT REQUEST
IS GRANTED THEM THE BILL FAILS
ON A TWO THREE VOTE.
MEMBERS WERE NOW GONNA BE MOVING
ON TO ITEM NUMBER FOUR I SP
FOURTEEN EIGHTY FIVE.
DO PASTURE PROCREATION SHARE
VOTING NO KERN VOTE ONE TO A
MISS LANE CHESTER. HERNANDEZ
HERTZBERG.
LARA KNOW LARA NO MORE LOCK.
TWO ONE THREE.
THAT CURRENTLY ENJOYS A ONE
THREE VOTE THE BILL FAILS WILL
NOT BEGINNING OUT.
WOULD TO LIKE TO REQUEST
RECONSIDERATION.
I CENTER MORLOCK IS REQUEST
RECONSIDERATION IN
RECONSIDERATION IS GRANTED TO
THE BILL DOES FAIL ON A ONE
THREE VOTE. I DO WANT TO SAY
THANK YOU TO THE AYE STAFF TEAM
FROM GOVERNANCE AND FINANCE FOR
ALL THE WORK.
HERE ON THESE MANY SENATE BILLS
A ESPECIALLY ON TWO DAYS HEARING
I'M IN ONCE I THINK IT'S IN OUR
MORE LOCK IN THE REST OF THE
COMMITTEE FOR ALL THEIR WORK AS
WELL. THIS MEETING IS ADJOURNED
WILL SEE IT NEXT WEEK THANK YOU
SO MUCH. FURNITURE