Proposition 39 has had a lot of attention put onto it, and for good reason. To say that it has become a tug of war between business and politics would be an exaggeration, but it has certainly become a major point of contention between them.
The government and many analysts agree that California’s Prop. 39 will help keep businesses here in state. As it proposes to close a tax loop hole that permitted companies with out of state holding to pay less tax, that does seem like it would be a natural result. What’s more if this loop hole is closed it would gather up to one billion dollars tax annually, at least in theory.
Proposition 39 also states that five hundred million of this money will be invested into green energy. This will not only allow more environmentally friendly power plants to be opened up, but it would also create a large amount of jobs in the green energy field. All in all a net win for the state at the cost of a little money from those who already have too much. That’s the theory of those who are for Proposition 39 anyway.
Those against claim that this isn’t closing a loop hole that shouldn’t have been there to begin with. This is a tax hike, plain and simple. The companies suffering already have boosted the infrastructure of the state by providing numerous jobs. Even those who don’t have holdings out of state will suffer when the law is amended to stifle the previous three choices in tax methods to a uniform one.
Some claim that not only will jobs be lost, but it will encourage companies to move to other states with lower taxes. Not to mention that new companies and established ones alike will be dissuaded from moving over to California. As for the five hundred million in green energy field, it already gets a large amount of money from the government. Giving it more is shot sighted, at least in the eyes of those against Proposition 39.
This is not as simple issues as it appears at first glance. Even though politics and business are on opposite sides, one side isn’t right and the other wrong. They both have perfectly valid points. But one has to lose out when it comes to voting. Hopefully it’s whichever side should lose for the good of the state.
Consideration was given for the editing and publishing of this article.