Tax equity - Page 3

With the business community divided, can labor and progressives force a business-tax reform that actually increases revenue?

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SEIU workers staged a massive rally on April 18 as part their campaign calling for downtown to pay more taxes

But it's clear some businesses those with high gross receipts but low payrolls — would pay more taxes. For example, the finance, insurance, and real estate sector now pays about 16 percent of the $410 million the city collects in payroll taxes. That would go up to about 21 percent under a gross receipts tax.

"Several industries that could face higher taxes under the proposal, such as commercial real estate, large retailers, and large construction firms, felt the increase was too sharp," the report said under the heading of "Policy Issues Arising From Meetings with Businesses."

The report highlighted how the change would broaden the tax base. Only about 7,500 businesses now pay the payroll tax (others are either too small or are exempt from local taxation, such as banks), whereas 33,500 companies would pay the gross receipts tax, which the report identified as another issue to be resolved.

"While some businesses appreciated the base-broadening aspect of the gross receipts proposal, others felt that too many small businesses were being brought into the Gross Receipts tax," the report said. Hauge also told us that he fears a tax increase on commercial real estate firms could be passed on to small businesses in the form of higher rents. "I don't want to see the business community split," Hauge said, although it's beginning to look like that might be unavoidable. The big question now is whether progressives and labor can find any allies in this messy situation, and whether they'll be able to agree on a compromise measure that all sides say is preferable to competing measures.

Comments

Don't get fooled again.

The City rolled the unions on pension reform, now the unions expect that if the City gets more revenues that the City will spend those dollars on public sector employees to provide public services?

No. The only way to end this cavalcade of municipal corruption is to cut off new revenues until the parasites fall of of the host. Let's hope that the parasites starve before the host does.

No sales tax.
No Park bond.
No gross receipts tax.

The only thing that Ed Lee will be allowed to do with these revenues is to further enrich the 1% at the expense of the rest of us.

Posted by marcos on May. 16, 2012 @ 7:30 pm

"The City rolled the unions on pension reform"

Oh yes, Their health insurance plans now cost $45 monthly. The horror!

I take it Marcos is on the City Family Plan. Wish I was, too, instead of having to pay for your insurance plus my own.

Posted by Troll the XIV on May. 17, 2012 @ 4:50 pm

This explains why I got called three times within one hour last night from pollsters asking about this local tax.

Posted by Erika McDonald on May. 22, 2012 @ 5:10 pm

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