(September 29, 2010) The California Chamber of Commerce is working with a bipartisan coalition of business organizations, taxpayer groups and hundreds of individual companies, large and small, to help defeat Proposition 24 on the November statewide ballot.  

CalChamber is urging its members to add their company’s name to the No on 24 opposition list and ensure they are registered to vote in time to defeat this direct assault on California businesses.

The last day to register to vote is October 18.

The CalChamber Board of Directors voted to oppose this proposal because it repeals recently enacted tax benefits, the elective single sales factor, net operating loss (NOL) carryback, and tax credit sharing. In addition, it repeals the recently enacted expansion of the NOL carryover from 10 to 20 years.

Specifically, Proposition 24 undoes recent state tax updates that were designed to help businesses survive the recession and grow new jobs. The State Franchise Tax Board estimates 120,000 businesses could be affected. The Rose Institute at Claremont McKenna College reports it could cost California 322,000 jobs and $1.8 billion in lost tax revenues annually and make California the only state among the 10 largest to be without any of these important job-creating tax policies. Proposition 24:

• Takes away a lifeline for small businesses, substantially limiting their ability to offset net operating losses against net income over time; 
• Prohibits affiliated businesses from sharing earned tax credits within their own unitary tax group; and
• Reinstates an outdated “jobs tax” on some employers, financially penalizing companies that create new jobs.

Resources

To add your company to the No-on-24 coalition list: www.stopprop24.com/home/join-as-an-organization

Learn more about Proposition 24 at the campaign website, www.stopprop24.com