News & Updates - California Business Roundtable Responds to Wealth Tax Proposal by California Legislature

March 15, 2021

SACRAMENTO—California Business Roundtable President Rob Lapsley issued the following statement today in response to the Legislature’s introduction of yet another tax increase proposal, despite the state’s revenue projections:

“This wealth tax proposal sends a strong message to the individuals who are already paying the highest state income taxes in the country that politicians are coming for more. No other state has a wealth tax, which will ensure that individual taxpayers will relocate to a friendlier state. Most importantly, General Fund revenues through January are already running $10.5 billion ahead of the January forecasts that already showed a $22 billion surplus. Compared to 2019-20, revenues are $34 billion higher than in the pre-COVID months. Plus, we have more than $100 billion from the federal recovery packages.

“If the wealth tax is meant to address income inequality, then a better policy solution would be to stop and reverse the expensive mandates that have driven up the cost of living and driven more families into poverty. We agree with Governor Gavin Newsom that now is not the time to raise taxes.”

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