SB 356 passed on a 6 to2 vote yesterday. This is the bill to give small business more input on regulations being put forth by state agencies. Supporting the bill was Aanestad,Correa,Negrete McLeod, Walters Wyland and Yee. Opposed was Florez and Romero. Senators Corbett and Oropeza did not vote.
This bill has a long way to go as it will go to Senate Appropriations and will most likely go to the Suspense File. It must come to the floor of the Senate by May 29th. The goal will be to get it out of Suspense and passed before that date. Thank you to all that wrote letters.
This was a major victory for small business and the small business coalition that has been formed. Small Business California through our lobbyist Lori Kammerer testified in support of the bill yesterday and her and I worked many of the members of the Committee. This bill is sponsored by the National Federation of Business and the California Small Business Association.
AB 23 passed yesterday in Senate Appropriations yesterday and will go to the Senate Floor. It will then go back to the Assembly for concurrence and then to the Governor.
This is the bill that will implement Cal COBRA’s ability to comply with provisions of the economic stimulus package. As most of you know Cal COBRA applies to businesses with 2 to 19 employees and this bill will allow the 65% subsidy for employees on their COBRA health insurance who have been involuntarily laid off from September 2008.
The notices should be going out to those employees shortly after the Governor’s signature. These notices and the subsidy will be handled by insurance carriers.
Scott HaugePresident
Small Business California
2311 Taraval StreetSan Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
Tuesday, April 28, 2009
Tuesday, March 31, 2009
Business Survey/ COBRA/Obama Budget
If you haven’t done so already please complete the business survey we have put together along with the California Workforce Investment Board, NoRTEC, the Assembly Committee on Jobs,Economic Development and the California Workforce Association.
Data is being collected to determine possible gaps and overlaps in workforce services available to businesses throughout the State. Information will be used to help improve the design and delivery of program services.
As you know education and workforce development came up as the second most important issue for small businesses in California.The survey is available here: www.zoomerang.com/Survey/?p=WEB228W4AW4MCE
Thank you for taking a few minutes to help us make a difference
Last week I indicated that the forms are out for employers who have 20 or more employees to notify employees of their COBRA options. This must be sent to employees
By April 18. If you do not send there is a fine of $110 a day and you could have civil liabilities. If you need the forms please let me know and I will send them to you.
There is a lot of discussion about President Obama’s budget. Do you support it as a budget that will get us out of the recession or do you think it is putting too much debt on the country?
Scott HaugePresidentSmall Business California2311 Taraval StreetSan Francisco, CA 94116shauge@cal-insure.com415-680-2188
Data is being collected to determine possible gaps and overlaps in workforce services available to businesses throughout the State. Information will be used to help improve the design and delivery of program services.
As you know education and workforce development came up as the second most important issue for small businesses in California.The survey is available here: www.zoomerang.com/Survey/?p=WEB228W4AW4MCE
Thank you for taking a few minutes to help us make a difference
Last week I indicated that the forms are out for employers who have 20 or more employees to notify employees of their COBRA options. This must be sent to employees
By April 18. If you do not send there is a fine of $110 a day and you could have civil liabilities. If you need the forms please let me know and I will send them to you.
There is a lot of discussion about President Obama’s budget. Do you support it as a budget that will get us out of the recession or do you think it is putting too much debt on the country?
Scott HaugePresidentSmall Business California2311 Taraval StreetSan Francisco, CA 94116shauge@cal-insure.com415-680-2188
Workers' Comp Increase/ PG&E Victory/COBRA
I sent to all of you the Workers Compensation Insurance Rating Bureau Actuarial Committee recommendation of 27% effective July 1 for all new and renewal workers compensation policies. Yesterday the Board of Governors of the Bureau recommended 24.4%.It now goes to the Insurance Commissioner.
Hank Ryan representing Small Business California spoke at a CPUC hearing a few weeks ago against a rate increase by PG&E for small businesses. Last week the CPUC ruled against the PG&E increase. I believe we were the only business organization that spoke against the rate increase. TURN represented residential users and that increase was denied also.
Hank Ryan representing Small Business California is an intervener at the CPUC and he speaks out frequently at the CPUC on behalf of California small businesses.
It is expected that the Federal government will produce the notification form today for employers that are subject to notifying their employees of their COBRA options. For employers with 20 or more employees you will need to send this form to all employees who have been involuntarily terminated September 1,2008 or after.This applies only to those employees that had health insurance through your company. You will be required to pay 65% of your employees premium and will receive a refund from the Federal government
For those employers with 2 to 19 employees your insurance carrier will be sending notice and you will not be required to advance the 65%.
One interesting note is that if you are subject to Federal COBRA[20 or more employees] you are allowed to add 2% for administrative cost. If however you are under state COBRA[ 2 to 19 employees] the insurance company send the notice and bills the employee and can charge 10%.
If you would like a copy of the notification form please look on our homepage at www.smallbusinesscalifornia.org
Scott HaugePresidentSmall Business California2311 Taraval StreetSan Francisco, CA 94116shauge@cal-insure.com415-680-2188
Hank Ryan representing Small Business California spoke at a CPUC hearing a few weeks ago against a rate increase by PG&E for small businesses. Last week the CPUC ruled against the PG&E increase. I believe we were the only business organization that spoke against the rate increase. TURN represented residential users and that increase was denied also.
Hank Ryan representing Small Business California is an intervener at the CPUC and he speaks out frequently at the CPUC on behalf of California small businesses.
It is expected that the Federal government will produce the notification form today for employers that are subject to notifying their employees of their COBRA options. For employers with 20 or more employees you will need to send this form to all employees who have been involuntarily terminated September 1,2008 or after.This applies only to those employees that had health insurance through your company. You will be required to pay 65% of your employees premium and will receive a refund from the Federal government
For those employers with 2 to 19 employees your insurance carrier will be sending notice and you will not be required to advance the 65%.
One interesting note is that if you are subject to Federal COBRA[20 or more employees] you are allowed to add 2% for administrative cost. If however you are under state COBRA[ 2 to 19 employees] the insurance company send the notice and bills the employee and can charge 10%.
If you would like a copy of the notification form please look on our homepage at www.smallbusinesscalifornia.org
Scott HaugePresidentSmall Business California2311 Taraval StreetSan Francisco, CA 94116shauge@cal-insure.com415-680-2188
Small Business Survey Results / NSBA
The results of our survey are in. 616 of you completed the survey and we received at least one survey from every county in the state.
Some of the findings are:
85% say the state is generally heading in the wrong direction
81% say the economy for small business is poor or very poor
61% of you said your revenues were declining
52% said you are reducing employees or reducing employee hours.
As for issues:
Health Insurance-80% said this was the top or high priority
Quality of Public Education- 70% said this was the top or high priority
Regulations- 61% said this was the top or high priority
Repairing State Infrastructure- 61% said this was the top or high priority
Access to Capitol-57% said this was the top or high priority
Awarding State Contracts to Small Business- 57% said this was the top or high priority.
See complete survey results by going to our website www.smallbusinesscalifornia.org
I would like to thank Jim Ross and Jim Ross Consulting in SF for all the help he has provided us in making this survey possible.
Our partner the National Small Business Association is asking for help in developing a website on how small business owners are dealing with the increasing cost of health insurance.NSBA would appreciate any help you can provide and maybe you would be willing to provide a profile. See below. If I can provide any additional information please give me a call.
Scott HaugePresidentSmall Business California2311 Taraval StreetSan Francisco, CA 94116shauge@cal-insure.com415-680-2188
NSBA is in the process of developing a Web site which will focus on how small-business owners are dealing with the increasing cost of health insurance. The site will include information about NSBA's health care policy, resources and other policy statements that are in-line with NSBA's (including documents from NSBA CORE members), links to relevant legislation, data and statistics from both outside sources and the NSBA health care survey (see below), and profiles of small-business owners on the challenges they're facing.
I'd greatly appreciate any input you might be able to provide--reports, studies, statements from your organizations, etc... I'd also like to ask for your help in getting out two requests to some of your folks.
1) We're in the process of getting small-business profiles and, ideally, would like to get a high-resolution picture of the business. We're only looking for a brief description of the challenges their business is facing in coping with the costs of health care - anything from 3 sentences to 2 paragraphs will be perfect and we don't have to have a picture. These profiles can be e-mailed directly to me at mbrogan@nsba.biz. I've attached the e-mail request I used here for you.
2) The survey link below is active until middle-to-late next week. If you can send this survey along to any of your members, I'd greatly appreciate it.
Please feel free to contact me with questions or suggestions. Thank you in advance for your help on this!
Regards,
Molly
202-293-8830
Some of the findings are:
85% say the state is generally heading in the wrong direction
81% say the economy for small business is poor or very poor
61% of you said your revenues were declining
52% said you are reducing employees or reducing employee hours.
As for issues:
Health Insurance-80% said this was the top or high priority
Quality of Public Education- 70% said this was the top or high priority
Regulations- 61% said this was the top or high priority
Repairing State Infrastructure- 61% said this was the top or high priority
Access to Capitol-57% said this was the top or high priority
Awarding State Contracts to Small Business- 57% said this was the top or high priority.
See complete survey results by going to our website www.smallbusinesscalifornia.org
I would like to thank Jim Ross and Jim Ross Consulting in SF for all the help he has provided us in making this survey possible.
Our partner the National Small Business Association is asking for help in developing a website on how small business owners are dealing with the increasing cost of health insurance.NSBA would appreciate any help you can provide and maybe you would be willing to provide a profile. See below. If I can provide any additional information please give me a call.
Scott HaugePresidentSmall Business California2311 Taraval StreetSan Francisco, CA 94116shauge@cal-insure.com415-680-2188
NSBA is in the process of developing a Web site which will focus on how small-business owners are dealing with the increasing cost of health insurance. The site will include information about NSBA's health care policy, resources and other policy statements that are in-line with NSBA's (including documents from NSBA CORE members), links to relevant legislation, data and statistics from both outside sources and the NSBA health care survey (see below), and profiles of small-business owners on the challenges they're facing.
I'd greatly appreciate any input you might be able to provide--reports, studies, statements from your organizations, etc... I'd also like to ask for your help in getting out two requests to some of your folks.
1) We're in the process of getting small-business profiles and, ideally, would like to get a high-resolution picture of the business. We're only looking for a brief description of the challenges their business is facing in coping with the costs of health care - anything from 3 sentences to 2 paragraphs will be perfect and we don't have to have a picture. These profiles can be e-mailed directly to me at mbrogan@nsba.biz. I've attached the e-mail request I used here for you.
2) The survey link below is active until middle-to-late next week. If you can send this survey along to any of your members, I'd greatly appreciate it.
Please feel free to contact me with questions or suggestions. Thank you in advance for your help on this!
Regards,
Molly
202-293-8830
COBRA and Stimulus Package
I mentioned that under the COBRA provisions in the stimulus bill small business will have some additional obligations for employees that have been involuntarily terminated. I have received additional information since that email and would like to pass it on to you.
First this will not only apply to Federal COBRA but state COBRA so if you had two or more employees from September 2008 and have laid off employees you will need to notify those employees that they are eligible for a 65% subsidy on their insurance. This notification provision will be required until Jan 1 2010.
If you have 20 or more employees and your employees have opted for COBRA you will be required to advance 65% of the premium and then submit to the Government for reimbursement. When you submit your request to the Government you will need to file a report that includes and attestation of the involuntary termination of the covered employee, the calculation of the offset, a report of estimated offsets for the next reporting period, the TINs of covered employees, the amount of the subsidy to each individual and information as to whether the subsidy provided was for individual or family coverage.
If you have 2 to 19 employees your insurance company is probably billing the exemployee. Needless to say insurance companies are scrambling right now to figure out how they will do this especially given the required information that they must provide to receive reimbursement.
Another provision you should be aware of is that exemployees will have a second chance to take up this COBRA option so in effect it seems to me that if you have laid off employees you will need to advise them of this option.
If you want more detailed information please look on our homepage at www.smallbusinesscalifornia.org
Scott HaugePresidentSmall Business California2311 Taraval StreetSan Francisco, CA 94116shauge@cal-insure.com415-680-2188
First this will not only apply to Federal COBRA but state COBRA so if you had two or more employees from September 2008 and have laid off employees you will need to notify those employees that they are eligible for a 65% subsidy on their insurance. This notification provision will be required until Jan 1 2010.
If you have 20 or more employees and your employees have opted for COBRA you will be required to advance 65% of the premium and then submit to the Government for reimbursement. When you submit your request to the Government you will need to file a report that includes and attestation of the involuntary termination of the covered employee, the calculation of the offset, a report of estimated offsets for the next reporting period, the TINs of covered employees, the amount of the subsidy to each individual and information as to whether the subsidy provided was for individual or family coverage.
If you have 2 to 19 employees your insurance company is probably billing the exemployee. Needless to say insurance companies are scrambling right now to figure out how they will do this especially given the required information that they must provide to receive reimbursement.
Another provision you should be aware of is that exemployees will have a second chance to take up this COBRA option so in effect it seems to me that if you have laid off employees you will need to advise them of this option.
If you want more detailed information please look on our homepage at www.smallbusinesscalifornia.org
Scott HaugePresidentSmall Business California2311 Taraval StreetSan Francisco, CA 94116shauge@cal-insure.com415-680-2188
Wednesday, January 28, 2009
2009 Small Business California Survey!
Last week I sent out our annual survey and the response has been a bit slow as we have just under 100 responses. Please take a few moments to complete the survey and forward to other small business owners. This is our chance to tell legislators and the Governor what small business is thinking and what are our concerns.
The results of the survey will be sent to every legislators and the governors office. It also sets the agenda for Small Business California.
Please help us help you.
http://www.zoomerang.com/Survey/survey-intro.zgi?p=WEB228QR44U46V
Scott Hauge
PresidentSmall Business California
2311 Taraval StreetSan Francisco, CA 94116
shauge@cal-insure.com415-680-2188
The results of the survey will be sent to every legislators and the governors office. It also sets the agenda for Small Business California.
Please help us help you.
http://www.zoomerang.com/Survey/survey-intro.zgi?p=WEB228QR44U46V
Scott Hauge
PresidentSmall Business California
2311 Taraval StreetSan Francisco, CA 94116
shauge@cal-insure.com415-680-2188
Thursday, November 06, 2008
Domestic Partners, Same Sex Marriage
You all have probably seen that it appears Prop 8 is going to pass. Did you know however that regardless of the passage of Prop 8 that if you have a Domestic Partner of one of your employees and they are paying their health insurance premiums through your group plan that the Federal government does not allow a deduction of the premiums from the Domestic partners income tax. In fact they will impute a cost on this. This is also true if you have a same sex marriage.
The state of California does allow a deduction.
I don't want to confuse the issue but I have found a number of small businesses treat the money the employee pays to the group plan for their employees and maybe children as if it automatically is pretax dollars. This is not the case unless you have a 125 plan or maybe a health reimbursement account set up.
Please consult your accountant on this and if you would like to receive information on how the Federal government imputes the tax please let me know.
Scott Hauge
President, Small Business California
shauge@cal-insure.com
415-680-2188
The state of California does allow a deduction.
I don't want to confuse the issue but I have found a number of small businesses treat the money the employee pays to the group plan for their employees and maybe children as if it automatically is pretax dollars. This is not the case unless you have a 125 plan or maybe a health reimbursement account set up.
Please consult your accountant on this and if you would like to receive information on how the Federal government imputes the tax please let me know.
Scott Hauge
President, Small Business California
shauge@cal-insure.com
415-680-2188
Small Business California
Small Business California recognized San Diego Gas& Electric and Frank Spasaro for their efforts in implementing On Bill Financing for small businesses. The ceremony was at the Army Navy Academy in San Diego which was one of the first organizations to take advantage of On Bill Financing. They received from San Diego Gas &Electric a loan at 0% interest and have paid it back in about one year using the savings on their energy bill. They said had it not been for On Bill Financing they would not have been able to take advantage of the cost savings available to them by the retrofit.
Small Business California created this program in California. While San Diego Gas & Electric is clearly in the lead on this, PG&E and Southern California Edison have come on board and will also be implementing an On Bill Saving program.
You may not be aware that Small Business California has Intervener status at the California Public Utilities Commission and we have pushed hard move this program forward. We are also playing a major role Nationally in pushing for On Bill Financing and have been in discussion with the SBA about this. Hank Ryan our Executive Director has been incredible in representing us on this issue.
On another front you all are aware that Small Business California sponsored SB 869 which goes after businesses that are not providing workers compensation coverage for their employees. The second batch of letters have been sent by the Workers Compensation Rating Bureau to employers that were provided to them by EDD. As was the case with the first 500 letters sent 15% of the businesses that received these letters had no workers compensation coverage. It is clear that there is major problem in California with businesses literally breaking the law and hurting legitimate businesses that are playing by the rules.
I hope you agree that Small Business California is making a difference for small businesses in California. If you haven't done so already please join our organization. The cost is $150 for businesses with less than $1 million receipts and $300 for those over $1 million.We need your help to. You can find out what we are doing by visiting our website at http://www.smallbusinesscalifornia.org/
The application for membership is available on the website.
Scott HaugePresidentSmall Business California2311 Taraval StreetSan Francisco, CA 94116shauge@cal-insure.com415-680-2188
Small Business California created this program in California. While San Diego Gas & Electric is clearly in the lead on this, PG&E and Southern California Edison have come on board and will also be implementing an On Bill Saving program.
You may not be aware that Small Business California has Intervener status at the California Public Utilities Commission and we have pushed hard move this program forward. We are also playing a major role Nationally in pushing for On Bill Financing and have been in discussion with the SBA about this. Hank Ryan our Executive Director has been incredible in representing us on this issue.
On another front you all are aware that Small Business California sponsored SB 869 which goes after businesses that are not providing workers compensation coverage for their employees. The second batch of letters have been sent by the Workers Compensation Rating Bureau to employers that were provided to them by EDD. As was the case with the first 500 letters sent 15% of the businesses that received these letters had no workers compensation coverage. It is clear that there is major problem in California with businesses literally breaking the law and hurting legitimate businesses that are playing by the rules.
I hope you agree that Small Business California is making a difference for small businesses in California. If you haven't done so already please join our organization. The cost is $150 for businesses with less than $1 million receipts and $300 for those over $1 million.We need your help to. You can find out what we are doing by visiting our website at http://www.smallbusinesscalifornia.org/
The application for membership is available on the website.
Scott HaugePresidentSmall Business California2311 Taraval StreetSan Francisco, CA 94116shauge@cal-insure.com415-680-2188
Wednesday, September 24, 2008
SB-Cal Activities
You all know that SB Cal is the lead small business organization in the state on energy issues. What you may not know is that we have intervener status at the California Public Utilities Commission. Hank Ryan our Executive Director represents us and in my opinion is the most knowledgeable person in the state on these issues. Yesterday he filed his comments to the CPUC regarding On Bill Financing. On Bill Financing exist in California due to his efforts. I also want to note that San Diego Gas &Electric is approaching $2 million in On Bill Financing and they have clearly been the leader with the Investor Owned Utilities.
Based on our survey the number 2 issue for small businesses in California is education and workforce development. Ginne Mistal, our board member in Redding, is working with the California Workforce Investment Board to develop best practices of local Workforce Investment Boards around the state.On September 11, she went to a meeting of the California Workforce Association and presented the questions SB-Cal and the California Workforce Investment Board developed. I might note that we had a lot of assistance from NORTEC who run some great programs in I believe 10 counties in the Redding, Chico, Yuba area.
Scott Hauge
PresidentSmall Business California
Based on our survey the number 2 issue for small businesses in California is education and workforce development. Ginne Mistal, our board member in Redding, is working with the California Workforce Investment Board to develop best practices of local Workforce Investment Boards around the state.On September 11, she went to a meeting of the California Workforce Association and presented the questions SB-Cal and the California Workforce Investment Board developed. I might note that we had a lot of assistance from NORTEC who run some great programs in I believe 10 counties in the Redding, Chico, Yuba area.
Scott Hauge
PresidentSmall Business California
Small Business Exemption
You all have heard by now that the Senate and Assembly passed a budget. The good news is we got an exemption for small businesses. The bad news is that instead of getting the exemption for businesses under $5 million it is for businesses under $500000.
We of course are disappointed with the reduction but without the leadership of Small Business California and the 35 associations that fought for the this there would have been no exemption.
Scott
We of course are disappointed with the reduction but without the leadership of Small Business California and the 35 associations that fought for the this there would have been no exemption.
Scott
Friday, July 25, 2008
Loss Carryover Letter
Dear CA Small Business:
Please copy and paste the letter text below to your company letterhead and send to me at shauge@cal-insure.com. Please fill in your name, title, and comany name. Thank you.
July 25, 2008
The Honorable Dave Cogdill and The Honorable Don Perata
California State Senate
Sacramento, CA 95814
The Honorable Karen Bass and The Honorable Michael Villines
California State Assembly
Sacramento, CA 95814
Re: Exemption for small businesses from loss carryover tax suspension
Dear Senators and Assembly Members:
I am a small business owner in California. I am very concerned about the proposal from the Senate/Assembly supporting the Net Operating Loss Carryover.
This proposal is being put forth as a big business tax loophole, but in reality it effects over 6 small businesses (under $5 million in receipts) for every 1 large company.
This measure would have a devastating impact on start-up businesses, small businesses interested in expanding and small businesses impacted by the cyclical economy.
I urge you to seriously consider the impact of this measure and if it does move forward, exempt businesses with less than $5 million in revenues. Thank you.
Regards,
Name
Title
Company
Please copy and paste the letter text below to your company letterhead and send to me at shauge@cal-insure.com. Please fill in your name, title, and comany name. Thank you.
July 25, 2008
The Honorable Dave Cogdill and The Honorable Don Perata
California State Senate
Sacramento, CA 95814
The Honorable Karen Bass and The Honorable Michael Villines
California State Assembly
Sacramento, CA 95814
Re: Exemption for small businesses from loss carryover tax suspension
Dear Senators and Assembly Members:
I am a small business owner in California. I am very concerned about the proposal from the Senate/Assembly supporting the Net Operating Loss Carryover.
This proposal is being put forth as a big business tax loophole, but in reality it effects over 6 small businesses (under $5 million in receipts) for every 1 large company.
This measure would have a devastating impact on start-up businesses, small businesses interested in expanding and small businesses impacted by the cyclical economy.
I urge you to seriously consider the impact of this measure and if it does move forward, exempt businesses with less than $5 million in revenues. Thank you.
Regards,
Name
Title
Company
Thursday, July 24, 2008
California Tax Measure Adversely Impacts Small Business: Please read!
Please see Press Release below:
Public Relations NEWS RELEASE
Client: Small Business California Date: July 23, 2008
San Francisco
Contacts: Paul von Beroldingen Scott Hauge, President
PVB Public Relations Small Business California
Off 415•751•1858 + Cell 415•264•8524 Off 415•680•2109 + Cell 415•699•9100
E-mail: paul@pvbpr.com E-mail: shauge@cal-insure.com
California Tax Measure Adversely Impacts Small Business
Organizations working on behalf of 3.2 million small businesses
request exemption from loss carryover tax suspension
SAN FRANCISCO, July 23 — Prestigious business organizations throughout California are urging Sacramento legislators and Governor Arnold Schwarzenegger to grant an exemption for small businesses in a proposed tax measure suspending net operating losses for three years.
The controversial tax measure — one provision in a state budget plan calling for $8.2 billion in new taxes — is designed to close a loophole for large corporations and generate $1.1 billion for the state. But small businesses earning less than $5 million in revenue may suffer the most negative effects.
“Although 80 percent of the total taxes would come from businesses with more that $5 million in revenues, more than six small businesses would be impacted for every large one,” according to Scott Hauge, founder and president of Small Business California, a business advocacy organization, and president of CAL Insurance & Associates in San Francisco.
“California’s economy is driven by 3.2 million small businesses that struggle to endure economic downturns, while investing in future growth and creating most of the new jobs at considerable personal and financial risk,” Hauge adds. “The issue is not just a ‘small business’ issue. It's really about the state's overall economy.”
Companies in California are permitted to carry forward net operating losses incurred in one year and use them as deductions against earnings in future years. The proposed budget would suspend the losses for three years. If a business operates at a loss — often the case with start-ups or businesses that add employees, expand inventory or upgrade equipment — it could not carry over that loss in subsequent years to mitigate the tax burden.
(more)
Tax Measure Adversely Impacts California Small Business — NEWS RELEASE Page 2 of 2
The list of 29 organizations signing a letter to state legislators requesting the exemption includes key chambers of commerce, local merchant groups, and statewide manufacturing and building associations:
Asian Business Association of Orange County
Associated Builders and Contractors of California
Building Owners and Managers Association of San Francisco
California Association of Competitive Telecommunications Companies (CALTEL)
California Association for Micro Enterprise Opportunity (CAMEO)
California Chapter of the American Contractors’ Association
California Employers Association
California Fence Contractors’ Association
California Metals Association
Engineering Contractors' Association
Flasher/Barricade Association
Golden Gate Restaurant Association
Los Angeles National Association of Women Business Owners
Marin Builders’ Association
Napa Chamber of Commerce
National Association of the Remodeling Industry San Francisco Bay Area
Oakland Metropolitan Chamber of Commerce
Plumbing Heating and Cooling Contractors of California
San Diego Chamber of Commerce
San Francisco Chamber of Commerce
San Francisco Council of District Merchants Associations
San Francisco Hispanic Chamber of Commerce
San Francisco Marina Merchants Association
San Francisco National Association of Women Business Owners
San Francisco Small Business Advocates
San Francisco Small Business Network
Small Business California
Small Business Majority
Small Manufacturers Association of California
# # #
NEWS MEDIA CONTACT:
Paul von Beroldingen Scott Hauge, President
PVB Public Relations Small Business California
Office: 415•751•1858 Office: 415•680•2109
Mobile: 415•264•8524 Mobile: 415•699•9100
E-mail: paul@pvbpr.com E-mail: shauge@cal-insure.com
Public Relations NEWS RELEASE
Client: Small Business California Date: July 23, 2008
San Francisco
Contacts: Paul von Beroldingen Scott Hauge, President
PVB Public Relations Small Business California
Off 415•751•1858 + Cell 415•264•8524 Off 415•680•2109 + Cell 415•699•9100
E-mail: paul@pvbpr.com E-mail: shauge@cal-insure.com
California Tax Measure Adversely Impacts Small Business
Organizations working on behalf of 3.2 million small businesses
request exemption from loss carryover tax suspension
SAN FRANCISCO, July 23 — Prestigious business organizations throughout California are urging Sacramento legislators and Governor Arnold Schwarzenegger to grant an exemption for small businesses in a proposed tax measure suspending net operating losses for three years.
The controversial tax measure — one provision in a state budget plan calling for $8.2 billion in new taxes — is designed to close a loophole for large corporations and generate $1.1 billion for the state. But small businesses earning less than $5 million in revenue may suffer the most negative effects.
“Although 80 percent of the total taxes would come from businesses with more that $5 million in revenues, more than six small businesses would be impacted for every large one,” according to Scott Hauge, founder and president of Small Business California, a business advocacy organization, and president of CAL Insurance & Associates in San Francisco.
“California’s economy is driven by 3.2 million small businesses that struggle to endure economic downturns, while investing in future growth and creating most of the new jobs at considerable personal and financial risk,” Hauge adds. “The issue is not just a ‘small business’ issue. It's really about the state's overall economy.”
Companies in California are permitted to carry forward net operating losses incurred in one year and use them as deductions against earnings in future years. The proposed budget would suspend the losses for three years. If a business operates at a loss — often the case with start-ups or businesses that add employees, expand inventory or upgrade equipment — it could not carry over that loss in subsequent years to mitigate the tax burden.
(more)
Tax Measure Adversely Impacts California Small Business — NEWS RELEASE Page 2 of 2
The list of 29 organizations signing a letter to state legislators requesting the exemption includes key chambers of commerce, local merchant groups, and statewide manufacturing and building associations:
Asian Business Association of Orange County
Associated Builders and Contractors of California
Building Owners and Managers Association of San Francisco
California Association of Competitive Telecommunications Companies (CALTEL)
California Association for Micro Enterprise Opportunity (CAMEO)
California Chapter of the American Contractors’ Association
California Employers Association
California Fence Contractors’ Association
California Metals Association
Engineering Contractors' Association
Flasher/Barricade Association
Golden Gate Restaurant Association
Los Angeles National Association of Women Business Owners
Marin Builders’ Association
Napa Chamber of Commerce
National Association of the Remodeling Industry San Francisco Bay Area
Oakland Metropolitan Chamber of Commerce
Plumbing Heating and Cooling Contractors of California
San Diego Chamber of Commerce
San Francisco Chamber of Commerce
San Francisco Council of District Merchants Associations
San Francisco Hispanic Chamber of Commerce
San Francisco Marina Merchants Association
San Francisco National Association of Women Business Owners
San Francisco Small Business Advocates
San Francisco Small Business Network
Small Business California
Small Business Majority
Small Manufacturers Association of California
# # #
NEWS MEDIA CONTACT:
Paul von Beroldingen Scott Hauge, President
PVB Public Relations Small Business California
Office: 415•751•1858 Office: 415•680•2109
Mobile: 415•264•8524 Mobile: 415•699•9100
E-mail: paul@pvbpr.com E-mail: shauge@cal-insure.com
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