April 11, 2012
TAX BREAKS AND CRONY CAPITALISM IN CA:
AB 1530
Clean Manufacturing and Job Creation Incentive Act of 2012.
If certain companies do what the State wants, the State government can play favoritism and reward those companies with tax breaks and at the same time, increase the impact of government in the marketplace. That is what California’s AB 1530 proposes. By giving the Department of Housing and Community Development more power to “designate” and “overview” where developments take place, the Department then gets to choose which companies get tax breaks and which companies do not, essentially picking winners and losers:
“(1) The Enterprise Zone Act provides for the designation and oversight
by the Department of Housing and Community Development of various
types of economic development areas throughout the state…Pursuant
to these provisions, qualifying entities in those areas may receive
certain tax and regulatory incentives.”
By letting the Department choose where these developments take place, the State is forcing companies to play by its rules, not the rules of the free market. Why should a department of State government decide who gets tax breaks and who does not? Should the free market decide where development takes place?
However, AB 1530 does not stop there. The bill would add even more power to government and the tax man:
“By imposing new duties upon local tax officials… this bill would impose
a state-mandated local program.”
Doesn’t the state have enough mandated local programs already? How many more do we need? The Libertarian Party says enough is enough; no more mandated programs, no more government intervention in the free market, and no more favoritism from Sacramento. Call your Assembly Member and say, “No on AB 1530.”
This bill is a bipartisan effort by Assembly Members Huffman (D) 6th District and Olsen (R) 25th District. Imagine that, Democrats and Republicans working together to wield more power and control over the marketplace.
Source:
http://www.aroundthecapitol.com/Bills/AB_1530/20112012/
C. Michael Pickens is a Libertarian who lives in Elk Grove, CA. He currently serves as northern vice-chairman of the CA Libertarian Party
A “tax break” is not the same thing as a subsidy or a loan guarantee. Since producers deserve to keep the full product and the revenue from it, letting companies lower their tax liability is a good thing, certainly better than a subsidy or a mandate.
Of course when the government gives tax breaks, that discriminates against others who don’t get tax breaks.
“Enterprise Zones” were first proposed by free market think tanks as an alternative to tax funded anti-poverty programs. If liberals & progressives accept ‘enterprise zones’ as a good thing, it is an admission that lower taxes and less regulation promote economic growth.
The real goal for Libertarians should be “one big enterprise zone, from sea to shining sea.”
But in the meantime, attacking “tax breaks” as statism does seem counter-productive.
Apparently, the legislators in Ca are busy trying o pass a whole new set of laws. It’s a good idea to start pointing out their nonsense as soon as possible.
I particularly like how short and concise the article is. If articles are too long, I often only read the first paragraph (it’s a bad habit I’ve learned from spending too much time on Facebook.)
I agree with the above article. It’s good.
Sounds like Sylondra and GM. Even the Republicans in CA are willing to bend over for the Obama Administration.