The centerpiece of Meg Whitman’s tax plan are a series of targeted cuts to various tax programs: the capital gains tax, which applies largely to stock holdings; sales taxes on manufacturing equipment; and an $800 fee on starting limited liability corporations, which her campaign refers to as a “startup tax.”
Her rationale has followed the convention that cutting taxes will spur growth by reducing the cost of doing business. Her budget plan calls for that additional growth to offset upwards of $5 billion of the state’s budget deficit and assumes tax cuts will help cause companies to hire 2 million workers by 2014.
Ideologically, Whitman supports the tax cuts enacted under President Bush in 2001 and 2003. Much of the rhetoric surrounding the cuts focuses on top income earners, but they’re not the only ones on the hook. This article explains how you would be affected, so you can get a better sense of her position.
Whitman has signed a pledge not to raise taxes but waffled slightly in June, when asked whether even an extreme natural disaster would be reason to levy new taxes for recovery efforts. She was caught off guard by the question and said she would not want to rule out taxes in such a situation, causing a minor stir.
In addition to cuts, Whitman has also proposed a series of tax credits: $10,000 for new homebuyers; credits to encourage water conservation; an expansion of the credit businesses receive on research and development activities; and a credit for companies that hire workers into green tech positions.
She philosophically supports cuts to statewide income and sales tax rates but said that would not happen until the economy recovers.
Aug. 9, 2010
Meg Whitman: You're right, Jerry Brown has no plan, and I have got a very detailed plan around those important priorities, but let's take jobs because it's the most important. I want to do some targeted tax cuts to get hire, to get hiring going again, for example, I want to eliminate the factory tax. I don't know if you know, but we are one of only three states that taxes manufacturing equipment, which is a disincentive to manufacture here. I want to streamline regulation. Regulation is strangling businesses of all sizes, and then I want to compete for jobs. You know, we lose jobs to Arizona, Colorado, Texas, Utah, and I want to have a terrific economic development team. You will not find a more staunch supporter of small business than me.
Source: KSWB (Fox 5-San Diego)
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June 30, 2010
At a campaign stop Tuesday in Roseville, Whitman was asked whether she would consider raising taxes if a natural disaster, such as an earthquake, rocked the state. There is some precedent: After the 1989 Loma Prieta earthquake, California levied a temporary quarter-cent sales tax for quake relief.
She replied: "In a natural disaster, gosh, that's hard to predict. I mean if there was literally an 8.0 earthquake here and we had no way out, gosh, certainly, I wouldn't want to necessarily rule that out. But under normal set of circumstances, I think raising taxes on businesses and individuals is exactly the wrong thing to do."
Source: Los Angeles Times
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