Friday, August 26, 2011

Riverside Press: Governor's jobs plan similar to previous Senate proposal

Governor's jobs plan has a familiar look

Riverside Press Enterprise Politics
 on August 25, 2011 4:54 PM 
Earlier this year, Senate Minority Leader Bob Dutton, R-Rancho Cucamonga, introduced legislation to create a partial sales-tax exemption on purchases of equipment used for manufacturing and software development.

The measure passed one committee and went no further, largely because of concerns about its cost.
The concept was back in action Thursday, as Gov. Jerry Brown and Democratic leaders unveiled a "California Jobs First" package that includes a partial sales-tax exemption on purchases of new manufacturing equipment.

"The exemptions will drive innovation, investment and growth by targeting many of California's most dynamic industries, including manufacturing, biopharmaceuticals, clean energy and software," according to the governor's office.

In February, state Sen. Bill Emmerson, R-Hemet, introduced a bill to expand eligibility for a $3,000-per-employee hiring-credit program.

Created as part of the 2009 budget deal, the credit is for companies with 20 employees or less, with total credits capped at $400 million. As of March, however, $360 million remained unspent.

Emmerson's bill would have let companies with up to 50 workers qualify for the credits. The measure passed one committee and stopped.

"Academic literature suggests that no state tax policy can affect high unemployment in this state," according to a Senate committee analysis of the bill.

Thursday's jobs plan calls for expanding the hiring credit to small businesses with up to 50 employees. Also, the credit for each new hire will increase from $3,000 to $4,000.

"These changes will encourage small businesses to hire immediately, as the credit will expire at the end of 2013," the governor's office said.

Dutton said the governor is swiping GOP ideas.

"A lot of the things the governor is talking about now are things that I and other Republicans have been talking about for over five years now," Dutton said.

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