David Dickinson is keeping a nervous
eye on bills coming out of Sacramento these days.
As the executive responsible for much of the day-to-day
operations at Delta Scientific Corp., a Palmdale maker of
vehicle barricades, Dickinson is well aware of how laws in
Sacramento affect his bottom line.
And news of bills that would raise workers’ compensation
benefits, grant employees paid sick leave and lengthen the
statute of limitations on lawsuits filed against employers has
caused him even more concern.
These are just some of the 34 bills that the California
Chamber of Commerce last week targeted in its annual “job
killer” list of bills regarded as onerous to business. That’s
up substantially from last year’s initial list of 23 bills.
“These bills increase our costs,” said Dickinson, whose
barricades are installed at government embassies and other
sensitive sites. “We do business across the globe and bills
like these make us less competitive on a global basis.”
With the state facing a huge budget deficit estimated at
nearly $16 billion next year, state lawmakers are eyeing a
host of taxes and fees on business, several of which have made
the chamber’s “job killer” list. Generating the most headlines
has been a pair of bills by Assemblyman Charles Calderon,
D-Montebello, that would impose taxes on transactions of goods
and services conducted over the Internet.
Two other bills would raise personal income tax rates on
high income earners. While this would seem to target wealthy
individuals or families, business lobbyists point out that a
lot of sole proprietors, partnerships, s-corporations and
other entities report their revenues as personal income for
the owners. So any new taxes end up as taxes on small
businesses, many of which are struggling in the economic
slowdown.
The remainder of bills on
the chamber’s job killer list targets a huge swath of economic
activity in the state, including development and commercial
properties, oil companies and electric utilities, the banking
sector and logistics companies.
“There’s a general theme to some of the legislation this
year, of going after the industries that have money,” said
Marc Burgat, the chamber’s vice president of government
relations. “It all goes back to this huge budget deficit we’re
facing, $24 billion over two years.”
Governor’s veto?
If some of these bills actually become law, Dickinson said
that will prompt him to step up his research on moving the
business to other states, like Texas or Nevada.
“In those states, businesses are valued. Here, the first
impulse of legislators is to heap more costs on business,” he
said.