California’s Zero Rationale Tax Schemes: Sick Pay Tax
More evidence of governmental bungling and great example of poor governance and poor project management. George Runner, my California Senator, writes in his weekly Report:
….raise taxes, meddle with the free market and impose more onerous regulations on businesses. Assembly Bill 2716 essentially does all of the above. The bill, which passed the Senate Labor and Industrial Relations Committee yesterday on a 3-2 party line vote, would demand that all employers provide paid sick leave to every employee – in spite of the employer’s ability to pay and regardless of whether the employee works full or part time….
Like a mandated tax, AB 2716 would cost employers $4.6 billion in the first five years if it were to pass, according to a study by the National Federation of Independent Business Research Foundation.
The study also shows 370,000 California jobs would be lost within five years of AB 2716’s enactment….But this bill goes beyond being a job killer; it’s a cold-blooded economy killer. It would cost California companies an estimated $59.3 billion in sales in the first five years of enactment according to the same study….
As this bill moves through the Legislature, my colleagues need to understand the level of damage these types of mandates inflict on the engine of California’s economy.
They need to understand that when small businesses get hit with cost increases, they cannot automatically increase prices to make up the difference.
Note that this ridiculous bill has no rationale except to get more money for the government- it is clearly a tax without reason. Then you have to ask: how will the money be spent. There is absolutely no link to a specific project or strategy. Basically a lot of money chasing projects yet undeclared with no strategy with no idea how the money will be spent. The professionally done report revealing the negative repercussions of this bill doesn’t seem to phase anybody. Voters! read and weep- then act.
Does your state government operate like this? What do you think is the root cause of such behavior? This type of action violates every tenet of good project management and governance? Do you agree or disagree?
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