While the state of California languishes with businesses leaving the state in droves, there is a glimmer of hope that there is a legislative solution to this problem. In fact, some would argue that the answer has been in front of the the California government for over three years.
That answer is known as Proposition 39 or as it is referred to, Prop 39. This proposal has been in the state legislature for over three years but it’s approval has been held up and in effect, blocked by staunch opposition to it’s tax implications. What many people are looking for is more information about Proposition 39.
In essence, Prop 39 is a bill that effectively closes a loophole in California corporate tax law that allows for more favorable tax rates to companies that sell goods to Californians but don’t employ Californians.
Perhaps the biggest issue is that this is yet another tax and most people would agree that there has been far too taxing going on. Few people know this better than the residents of California. However, where Prop 39 differs from other tax legislation is Prop 39 does several specific things with the generated tax revenue.
First of all, this bill will add more than $1 billion to the California general fund. With California looking at a possible budget shortfall of $10 to $25 billion for this year and for future years, a fresh stream of revenue is badly needed.
Secondly, revenue from Prop 39 is going to be used to increase funding to California schools. If any state needs improved funding, considering all the budgetary issues, it would be California.
Lastly, and perhaps most importantly, it puts local California businesses on an even playing field with out of state businesses. In addition, Prop 39 is projected to create thousands of new high paying jobs, especially in the Eco jobs market.
With green businesses and industries having more equitable conditions to work under and not being outdone by large out of state companies, it’s predicted that Eco businesses will grow and begin hiring new employees. This is welcome news for a state that has been ravaged by the current rise in unemployment. It is also good news for the Eco jobs market that is thriving in California and around the entire nation as well.
As green jobs continue to proliferate, legislation like Proposition 39 can help to continue to champion the cause for California based green industries. Proposition 39 will be coming up for a vote by California residents later this year. It’s a chance for the embattled Proposition to have it’s fate decided by the citizens of California once and for all.