Big biz readies fight over wealth taxes + Recall showdown + Weber (apparently) wins
Good morning and welcome to the A.M. Alert!
CALCHAMBER EXPANDS ITS ‘JOB KILLER’ LIST
Via Hannah Wiley...
It’s a list that few Democrats care about being on, but one that the business community pays close attention to.
The California Chamber of Commerce updated it’s so-called “Job Killer” list on Wednesday, and placed three tax measures on the file.
Two proposals, Assembly Constitutional Amendment 8 and Assembly Bill 310, would modify California’s tax code to impose a 1% tax on households with a net worth exceeding $50 million, or at least 1.5% on those exceeding $1 billion.
Assemblyman Alex Lee, the San Jose Democrat who wrote the bill, projects that it would apply to less than 1% of households in California, but would raise about $22.3 billion in new revenues per year.
Assemblyman Miguel Santiago’s Assembly Bill 1253 also ended up on the list. The Los Angeles Democrat’s proposal would impose a surcharge on anyone worth more than $1 million in California, to start, but raise the levy as wealth increases.
The chamber argued in letters to the authors that the increases would “further encourage” wealthy Californians to “leave for states with less punitive tax systems.”
Both Lee and Santiago, along with their co-authors, have argued that the proposed taxes would help California more equitably recover from the COVID-19 pandemic by funneling additional money into public resources like schools.
“Instead of advocating for thousands of small businesses who are hurting right now, the CalChamber is expending its energy to protect the billionaires and the top wealthiest 0.07%,” Charlsie Chang, communications director for Assemblyman Lee said in a written statement. “From March 2019 to January 2021, collective wealth of California billionaires grew about $250 billion, roughly $50 billion more than the size of the state budget at the same time that women and low-income workers suffered disproportionate levels of job loss. Our modest proposals ask those with net worths of more than $50 million, whose wealths have grown exponentially during a pandemic, to pay their fair share and allow for the robust reinvestments we need to build back better.”
RECALL TÊTE-À-TÊTE
Via Lara Korte...
Politicos on both sides of the Newsom recall had a spirited debate during a forum with the Sacramento Press Club on Wednesday. Panelists included Democratic strategist Katie Merrill, longtime Newsom adviser Ace Smith, Rescue California leader Anne Dunsmore and CalChamber’s Martin Wilson.
Here’s what they had to say about how we got here and what Californians can expect in the coming months:
“You’re sorely mistaken if you believe that this is a straight up referendum on Gavin Newsom... This will be a national debate about which is the direction California should go with? Is it a direction where we are actually caring about our people and taking care of them? Or is it a direction where we go towards the division in the hate that we saw in the Trump years? That’s the fundamental question.”
- Smith on the role of Donald Trump in the recall.
“We’re not going to win the Hispanic vote, but we’re going to get an uncomfortably large margin that you need to keep. And I don’t think you’re going to get the women, those soccer moms. Their kids aren’t allowed to play soccer anymore, so now they’re just mad moms. And that’s what you’re looking at. That’s why it’s been so easy for this movement to succeed because it’s run by demographics that should be in your back pocket.”
- Dunsmore on why Democrats should be worried.
“With all due respect to the former Lt. Gov. Cruz Bustamante, if they would like to follow his career path post-2003, by all means.”
- Merrill on the possibility of a Democrat running in a Newsom recall. Bustamante made the gamble to run against Democratic incumbent Gray Davis in the 2003 recall, and not only lost to Arnold Schwarzenegger, but failed to regain traction in the Democratic party following the campaign.
“I think the business community is probably skeptical and trying to understand the dynamic that’s going on out there. But there’s elements of the employer community that are very frustrated, and were certainly very frustrated with the lockdown efforts, and some of those businesses aren’t coming back.”
- Wilson on how the business community views the recall.
If you didn’t catch the forum live, you can watch it on the Sacramento Press Club’s Facebook page
BONUS: This morning at 8 a.m. the California Latino Legislative Caucus, led by Sen. María Elena Durazo, D-Los Angeles, will host a press conference to condemn the recall. We’ll keep you updated on what members say, or you can watch for yourself on the caucus’ Facebook page.
AD 79 SPECIAL ELECTION RESULTS
With 100% of precincts reporting, Dr. Akilah Weber appears to be the winner of the special election for Assembly District 79 — the seat vacated by her mother, Shirley Weber, upon taking the job of Secretary of State.
Weber, a Democrat, claimed 52% of the vote, enough to avoid a runoff election against the next highest vote-getter, Republican Marco Contreras, who got 33% of the vote.
TAX POLICY AND RACIAL EQUITY
The California Budget and Policy Center is out Thursday morning with a new report examining the history of California’s tax and revenue policies and how they have affected communities of color.
“Legacies of historical racist policies and ongoing discrimination in areas such as education, employment, and housing have barred many Californians of color from economic opportunities. As a result, Californians of color — particularly Black, Latinx, and American Indian Californians — are less likely to have high incomes and to have built enough wealth to be able to weather periods of income loss, retire comfortably, and pass on wealth to their children. These barriers have also made Californians of color more likely to have experienced health and economic consequences of the COVID-19 crisis,” the report, authored by Kayla Kitson, opens up.
The report concludes that the state has a history of racist policies that have led to a significant disparity in racial income in the state, that tax breaks have historically benefited people with higher incomes, that costly tax breaks for homeowners are less likely to benefit Californians of color, that refundable tax credits boost incomes for low-income Californians of color, and that taxing wealth and high incomes would reduce racial inequity while raising more revenue for the state.
You can read the report for yourself by visiting here.
QUOTE OF THE DAY
“How many times have politicians in Sacramento taken a victory lap on the wildfire issue? Californians can see thru the BS, especially when it’s their house burning down. My guess is that another victory lap is in store this year with another record fire season to follow.”
- Assemblyman James Gallagher, R-Yuba City, via Twitter.
Best of the Bee:
Hundreds of workers have taken an English class over the last year from the Hospitality Training Academy, a partnership between labor union UNITE HERE Local 11 and employers. As the industry lost jobs by the thousands in California, the academy trained laid-off workers so that when they return they can use their skills to get to a better career, via Jeong Park and Kim Bojórquez.
Broadband expansion advocates are pushing California Gov. Gavin Newsom to use $2 billion in federal money to not only bring high-speed internet to communities without access, but also to have the state provide low-cost or free broadband access to low-income households, via Kate Irby.
On Tuesday, U.S. Army veteran and triple amputee Jose Martinez urged California lawmakers to help others like him by advancing a bill that would decriminalize psychedelic drugs like mushrooms and LSD. He told the Senate Public Safety Committee the therapies could be used to prevent suicides, via Andrew Sheeler.