Call to Action - Proposal makes businesses into tax collectors and forces small biz to make interest-free loans to state.
California continues to have a severe budget crisis - $20 billion in the hole. Unfortunately, one of the solutions being proposed in Sacramento is yet another budget gimmick - an onerous 3% independent contractor withholding mandate on businesses and public agencies.
Any business/agency hiring an independent contractor (anyone who receives a 1099-MISC) will have to reduce every payment by 3%, and is responsible for remitting that money to the Franchise Tax Board, the state tax collection agency.
- Almost all companies, agencies and non-profits of any kind will have to withhold.
- Almost anyone who receives a 1099-MISC will be withheld upon, including builders, plumbers, real estate agents, attorneys and health care providers.
Under This Proposal:
- The 3% will be withheld even if the business owes no income taxes for the year due to losses/slim profit margins.
- The state gets to use the money-interest free until tax return time the next year.
- Money is taken out of the pockets of businesses that is needed to keep business afloat, make payroll and pay bills.
- Implementation will be extremely costly and complex for businesses and state and local government agencies.
- The mandate is ongoing and permanent for businesses/agencies.
All for a one-time money grab that is merely an acceleration/borrowing that generates very few new revenues for the state!
Call to Action:
- Add your business's name to the growing coalition against this proposal! To be added, simply e-mail laurie.lively@calchamber.com. Your business's name will be added to the coalition fact sheet.
- Write or call your legislators in the Assembly and Senate. Visit CalChamber's grassroots page to view a sample letter and/or look up your legislators' phone numbers.
- Spread the word. Forward blog and the fact sheet to other businesses that should be concerned.
Thanks for your help!
DelNorteCountyREOForSale.com & REOAgent95531.com
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