Congressional candidate Darrell Issa is calling on Governor Gavin Newsom to suspend the $800 minimum tax on businesses in California. In a series of tweets, the former congressman implored the governor to take action to protect California’s businesses.
Today, I'm calling on Governor Newsom to suspend the $800 minimum tax on companies doing business in California.
Many small businesses may operate at a loss for the first time in years.
— Darrell Issa (@DarrellIssa) April 14, 2020
This regressive tax is hurting small businesses now more than ever due to the COVID-19 crisis. Business owners are already paying some of the highest tax rates in the country, and this minimum tax is creating a stranglehold on small businesses already struggling to get by. Commerce in the state is already being hindered by this “pay to play” model, and businesses are being forced into neighboring states to make a living.
Issa also noted the absurdity of the idea that doing business in California is a “privilege” rather than a fundamental right.
California's official language declares the minimum business tax is for, "The privilege of doing business in California." Doing business is not a privilege however, it's a fundamental American right.
— Darrell Issa (@DarrellIssa) April 14, 2020
Many small businesses run the risk of operating at a loss for the first time in years, and are unsure how to move forward in this economy. In light of the situation at hand, state officials must protect them. Issa is right in calling for action in our nation’s time of need.
