Bills provide tax relief for new small businesses
shine light on onerous regulations
March 22, 2017
State Senate, Sacramento, California - Noting that the state's economic recovery
has been a slow and uneven one, Senator Mike Morrell (R-Rancho Cucamonga)
announced that he has authored legislation to increase the confidence of
small businesses as they decide to either locate or invest in California.
"California should have everything going for it. With our diverse
geography, desirable climate, and world-class colleges and universities, our
state holds incredible promise," says Senator Morrell. "Yet
the unfortunate reality is that the state continues to have a reputation for
high taxes and burdensome regulations.
in California is cost prohibitive, which slows our economy and prevents
careers from getting off the ground. Our state needs to reverse this trend,
assuring small businesses that if they open their doors here, they will have
every opportunity to maximize their potential and create jobs."
- 248 would provide a startup incentive to new small businesses by
cutting the minimum franchise tax in half from $800 to $400 for the five
years of operation following the first taxable year.
- 555 would hold state agencies to greater accountability for
decisions impacting jobs and the economy by requiring an automatic review of
regulations five years after their adoption and implementation.
Facts about California's burdensome
regulatory environment and high tax rates:
For 12 years in a row, 500 CEOs surveyed by Chief
Executive Magazine have ranked
the state last in business-friendliness.
An estimated 9,000
businesses have left California or decided against expanding
operations here since 2008.
Research by the National Federation of Independent
Business finds that half of
small business owners say regulations are a serious problem.
The rate of new business creation nationwide dropped
more than 30 percent during the economic downturn and has been slow to come
Bill - 555 is scheduled to be considered by the Senate Governmental
Organization Committee on March 28.
Bill - 248 is scheduled to be considered by the Senate Governance and
Finance Committee in May.
represents the 23rd
State Senate District,
which covers portions of Riverside,
San Bernardino and Los