Governor Brown Announces Job Growth Proposal

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August 25, 2011 In light of California's persistent economic stagnation, Governor Brown announced a new proposal today to spur job growth. Among other things, the California Jobs First plan includes an exemption for the purchase of manufacturing equipment by specified businesses, and the application of the Mandatory Single Sales Factor (SSF) to businesses in California. Prior to Legislative action in 2009, businesses were required to use the SSF when computing their tax liability and restoring it would increase the tax burden for certain companies. The increased revenue from this change would then be used to balance the impact of the proposed tax credits and exemptions. You can read more about the proposal here and here. Governor Brown proposed the mandatory SSF in his first budget, and was unable to get the Republican votes needed for the tax change. It remains to be seen whether the tax exemptions and credits in this revamped proposal will garner Republican votes.