Meg
Whitman:
My
tax
strategy
will
spark
immediate
job
growth


The Desert Sun

April 15, 2010

When California hits hard times, Sacramento politicians predictably raise taxes.

The problem is that higher taxes make our situation worse. Today Californians are shutting their
businesses, losing their homes and moving to other states. Why? High taxes and out-of-control
fees are driving both jobs and job creators out of our state.

I've had a 30-year career in business, and I built a company in California. I know what it takes to
drive industries forward. I believe I know what has to be done to lead us to recovery and get
Californians back to work.

I will not raise taxes

It starts with a pledge that I will not raise your taxes. And it requires a true commitment to cut
spending.

I have a road map to help create 2 million private-sector jobs by the beginning of 2015. It's an
ambitious goal, but my team and I have dissected the state's economy, identified the growth
opportunities and constructed a policy agenda that will put us on track for success.

With California facing a $20 billion deficit, we have to be strategic and responsible in how we
deliver tax relief. And we must keep an eye toward fostering innovation, entrepreneurship and
small-business creation. Those are the things that will both create new jobs and new revenue to
put our state budget back in order.

I'm putting forward a tax-cut strategy that is affordable and focused on job creation. It's an
achievable tax cut, not an empty campaign-year promise that can never be delivered.

Here's my plan

Eliminate the factory tax in California. California is only one of three states that do not offer a tax
credit or exemption on the sales tax manufacturers pay on the equipment they buy.

Think about it: a company has to pay a lot more to buy a piece of equipment here than in 47 other
states, including other Western states we compete with. That is a real job-killer.

I will also accelerate the depreciation of new business equipment to encourage farmers,
manufacturers and others to expand, invest and hire. Since 2000, California has lost 600,000
manufacturing jobs, equivalent to 32 percent of the industrial base. That must stop.

Eliminate the start-up tax that requires small businesses to pay an $800 fee when they hang out a
shingle. Small businesses employ nearly 80 percent of working Californians. We should encourage
small-business creation, not tax entrepreneurs right out of the gate.

Increase the research & development tax credit for California businesses from 15 percent to 20
percent to promote investment in new technologies and industries of the future. This will fuel
innovation and keep California on the cutting edge of the global economy.

Provide several targeted tax incentives: an incentive to encourage businesses to locate around our
universities and foster close collaborations; a tax credit to create green tech jobs; and a $10,000
tax credit for buyers of new and existing homes. This last tax credit will shore up our real estate
industry, increase home values and make it easier for young families to purchase their first homes.

Eliminate the state capital gains tax. Capital gains play a unique role in fostering economic activity,
especially by entrepreneurs in new-technology areas, and shouldn't be taxed. Texas, Washington
and Nevada, states we compete with for jobs, have no capital gains tax. The average
unemployment in states with no capital gains tax is 9 percent; in California it's 12.5 percent. My
primary opponent, Steve Poizner, opposed a cut in the federal capital gains tax rate, and only
suggests reducing it on a state level. I will eliminate it.

Income tax cuts coming

As California's economy recovers and spending has been brought under control, I will move ahead
with across-the-board income tax cuts. I will also put a freeze on all new regulations, while my
administration works to smooth and untangle the mess of overlapping and conflicting regulations
that now come out of Sacramento. My plan is laser-focused on creating jobs for Californians. And it
will work.

But don't just take my word for it. Ask the experts. After spending a year closely examining both
my record and that of my primary opponent, the Howard Jarvis Taxpayers Association endorsed me
as the best choice for California's hard-pressed taxpayers.

The path to a new California is clearly before us. It starts with creating the new jobs and innovative
businesses we must have through smart tax cuts and conservative fiscal principles. If elected, I will
lead our state toward a prosperous, secure future.

Paid
for
by
Meg
Whitman
for
Governor
2010


20813
Stevens
Creek
Blvd,
Suite
150

Cupertino,
CA
95014

www.megwhitman.com