Brown Wants Tax Changes To Promote Job Growth
SACRAMENTO (AP) -- Gov. Jerry Brown is proposing a tax plan designed to promote job growth, closing one corporate tax loophole while offering an incentive for businesses to hire in California.
Brown spokesman Gil Duran says Brown will detail the proposal later Thursday.
Under the plan, the governor will ask lawmakers to change a tax formula passed in 2009 that benefited large, out-of-state corporations. The move would force those companies that sell goods in California but do not employ many residents to pay more in sales tax.
He wants to use the estimated $1 billion to be generated to provide sales tax exemptions for startup manufacturers and existing firms as an incentive to hire. He also proposes expanding employee tax credits for companies.
California has the nation's second highest unemployment rate.
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