Assembly Bill#5 heavy-handed enforcement

on small businesses & independent contractors


Senator Morrell states concern for Millions of Californians

2020-21 State Budget

Increased Taxes

Beginning JULY 1st



Jun 2020, Sacramento, CA ___  Senator Mike Morrell (R-Rancho Cucamonga) released the following statement after the legislature’s passage of its 2020-21 state budget bill:

“Despite the unprecedented economic challenges and unemployment rate facing millions of Californians, the state budget crafted by Democrats in Sacramento increases taxes o

n business and job creators by more than $9 billion, impacting industries like research and development, many of which are at the forefront of coronavirus response.  

“It never seems to be enough. In the best of times in 2019, when the state had a $21-billion budget surplus, majority party leaders still pushed through more than $2 billion in tax increases. Now, in some of the worst times with the largest deficit in state history at $54 billion, they are pushing ahead with taxes when they can least be afforded. These increases do not even include the higher gas and car taxes going up on July 1.      

“What do these taxes pay for? Nearly 900 staff positions, including $22 million to hire more than 100 people for the heavy-handed enforcement of AB 5 on small businesses, a law that has cost hundreds of thousands of Californians working as independent contractors their livelihoods. High-speed rail remains at the top of the agenda with the hiring of 85 new state employees, which is all about building union membership. There is also $5 million for a new state park, location unknown.        

“Not only will this budget plan slow down job growth, it also irresponsibly spends millions in taxpayer dollars to prop up government programs that will do little to put California on track for full economic recovery.”