The Corner

California’s Tax Man Cometh

California’s governor, Jerry Brown, has been involved in an amusing spat with Rick Perry over whose state is more welcoming to business. Brown has been in rare form, calling Texas’s campaign to poach California businesses a “cry for help” and “not a burp. It’s barely a fart.” He also dissed the Dallas Cowboys.

Despite Brown’s colorful rhetoric, California’s record is abysmal. The Tax Foundation ranked the state 48th in the nation in its 2013 State Business Tax Climate Index. And a new report from the California Business Round Table found that 69 percent of the state’s business leaders think California is the toughest place in the nation to do business.

And then there’s this development.

For 19 years, California offered a tax break for residents who owned shares in small businesses that based most of their workers and assets in-state. That tax break was ruled unconstitutional. So now California’s Franchise Tax Board is trying to claw back-taxes—plus interest—from the 2,000 residents who received the incentive. That adds up to around $120 million.

Perry could just stay silent. California’s apparently hell-bent on losing the argument.

Jillian Kay Melchior — Jillian Kay Melchior writes for National Review as a Thomas L. Rhodes Fellow for the Franklin Center. She is also a senior fellow at the Independent Women’s Forum.

Most Popular

Culture

Courage: The Greatest of Virtues

EDITOR’S NOTE: The following is Jonah Goldberg’s weekly “news”letter, the G-File. Subscribe here to get the G-File delivered to your inbox on Fridays. Dear Reader (Or Listener), As the reporter assigned the job of writing the article about all of Sidney Blumenthal’s friends and supporters told his ... Read More
Immigration

My American Dream

This morning, at 8 a.m., I did something I’ve wanted to do for as long as I can remember: I became an American. I first applied for a visa in early 2011, and since then I have slowly worked my way through the system — first as a visa-holder, then as a permanent resident (green card), and, finally, as a ... Read More
U.S.

The Gun-Control Debate Could Break America

Last night, the nation witnessed what looked a lot like an extended version of the famous “two minutes hate” from George Orwell’s novel 1984. During a CNN town hall on gun control, a furious crowd of Americans jeered at two conservatives, Marco Rubio and Dana Loesch, who stood in defense of the Second ... Read More