Current Happenings

If you sold a small-business in California after 2008, pay up!

A California Court of Appeals has decided that a tax policy which halved the capital gains tax rate for small-business owners who had more than 80% of their resources in California is "unconstitutional" and will now seek back taxes from more than 2,500 small business owners. The court found the former incentive to create small business in California violates interstate commerce because investors in similar out-of-state firms can't get the same breaks.

Tax Franchise Board spokesman Daniel Tahara says, "Once discrimination is found to exist, that discrimination must be cured." Economics think that the disappearance of the tax incentive will cause a drop in at least 100 million dollars annually from investors running away. Another example of the absurdity that comes from trying to make everything "equal." Mr. Tahara's quote could be put on the front of the t-shirts of progressives everywhere. Chasing business in the name of equality. Yet another reason to move out of California.  

-Source "Back-Tax Hit Sparks Fury" WSJ April 13-14, 2013