Chamber News

Business Beat - Help Is Not On The Way

Gary H. Tatum, CEOFriday, June 19, 2009


One would think that with all of the difficulties faced by our state as well as the worldwide recession we are laboring with, some semblance of relief would occasionally pop up. Well just as it appears darkest it just gets a little darker, especially for our business community.


State Senator Ducheny, D-San Diego has submitted SB 222, which appears to tell you business folk not to hire anymore people. While the state’s unemployment hovers around 11 percent, and shows signs of increasing, we certainly need a proposed bill that will triple the cost to employers for Unemployment Insurance (UI) taxes. 


This is just another example of how some wish to tax us out of the doldrums we find ourselves in. I’m reminded of a recent comment from an acquaintance which was repeated in a newspaper column that spoke about folks like me as people that just don’t want to pay taxes. Don’t let talk like that bully you into thinking you are wrong headed to not wish to pay increased taxes. We all should realize that the payment of taxes is what keeps the ship of government afloat and that this is not a true identifier for those of us who are sick of increased taxes that cause nothing but increased burdens. 


So, along comes Senator Ducheny who has the solution to a depleted state employer-funded UI trust fund, and that is to triple payments. It is obviously unemployment that has caused the fund to become depleted, but by placing an additional burden on business will certainly not solve the problem. 


As I have stated many times in the past, it is tax and fee reductions along with other lifting of onerous restrictions on business that will allow business to hire people, thereby reducing unemployment.


The California Chamber of Commerce has added SB 222 to its list of “Job Killer” bills, and rightfully so. 


As if this were not enough another wonderful bit of news came from the California Supreme Court. In a 4-3 decision Proposition 64, which put a virtual stop to frivolous lawsuits, was overturned. Proposition 64 was overwhelmingly approved by the voters in 2004, which simply required plaintiffs in lawsuits filed under the state’s Unfair Competition Law to have actually suffered harm. 


The Supreme Courts decision will now make it much easier for people to submit meritless lawsuits that will cause businesses to incur higher court costs. The three justices opposing the majorities ruling expressed harsh criticism, but obviously to no avail.


In the meantime our state’s budget woes continue to the point that, as previously spoken of, they intend to raid our cities, counties and special districts of property tax funds. The state calls it “borrowing”, which in fact may be correct, but does one really believe they will return these borrowed funds in three years as the law provides? This raid on local government accomplishes increased burdens on already strapped local governments, many of whom have done a great job in handling local finances. It will mean approximately $1.8 million for Vacaville. It is just a case of an inept government attaching the funds of an otherwise solvent lower governmental entity. It’s akin to me having just lost my job and finding I can’t make my house payments to knock on your door and expect a percentage of your income to tide me over. Such an action just isn’t right.


So are you letting your representatives in Washington and Sacramento know that you have had enough of this taking? If you feel that way write than tell them so. You can call us at 448.6424 to obtain the address, phone numbers and emails of our elected representatives. We can’t just sit and complain we need to take action.