Sherman Oaks, CA – The United Chambers of Commerce of the San Fernando Valley and Region Government Affairs Committee passed motions on several issues at their meeting on Monday, February 12th, 2018. The motions were approved by the Executive Board of Directors on Monday, February 26th, 2018.
ACA-22: Middle Class Fiscal Relief Act
The Middle Class Fiscal Relief Act “would impose a surcharge of 10% on the net income of all corporations that is over $1,000,000,” and would deposit the income into the Middle Class Fiscal Relief Fund. Funds from this surcharge could be allocated for specific purposes, including fiscal benefits to lower and middle-income Californians. Potential uses include:
- Expanding the Earned Income Tax Credit
- Provision of other tax rebates or tax relief
- Expanding access to child care and early education
- Providing for affordable healthcare
- Expanding higher education financial aid
The ACA-22 Bill was proposed in reaction to the Tax Cut & Jobs Act, which was recently passed by Congress and signed into law by President Trump. The motion to oppose the ACA-22 was made by Committee Co-Chair Richard Fisk, and seconded by Committee-member Sean McCarthy. One Committee Member described the motion as, “just another tax on business, making the state less and less friendly to businesses.”
SB-827: Housing projects in “transit-rich” areas
SB-827 seeks to provide certain development bonuses and exemptions for “transit-rich housing projects” – housing projects that are built within 1/2 a mile of a “major transit stop” or within 1/4 mile of a “high-quality transit corridor”. The bill is presented as a step to address California’s severe housing shortage and transportation issues.
However, the bill threatens to override certain local land-use regulations, reducing the ability of local governments to control development in their jurisdictions. A motion to oppose SB-827 was made at the meeting, and passed by unanimous vote.
SB-993: Sales tax: Services
SB-993, introduced by State Senator Hertzberg, would impose a sales tax on services provided by businesses. Some services, such as healthcare, would be exempted from the tax. Revenue from the tax would be used to fund California’s various middle-class relief, infrastructure, and other initiatives.
However, it was argued that a service sales tax would be very difficult to calculate or enforce, and would wreak havoc on wide swaths of the state’s business community. A motion to oppose SB-993 was made at the meeting, and passed by unanimous vote, including 2 abstentions.
The United Chambers of the San Fernando Valley and Region is a coalition of 32 business organizations including 18 Member Chambers, representing over 21,000 businesses that provide over 387,000 jobs. United Chambers deals with Valley-wide, County-wide and Regional issues and promotes the San Fernando Valley’s overall welfare, progress and economic prosperity.