The past few decades Americans have watched as their jobs have gone overseas, especially in the manufacturing industry. California has been hit even harder by taxes mandated on manufacturing equipment. California State Assemblyman, South City’s own Kevin Mullin, recently addressed this concern as he works to bridge the partisan divide in Sacramento. Below is Honorable Mullin’s press release.
The Assistant Speaker pro Tem is working to build bipartisan coalition to improve California’s economic competitiveness
Sacramento – Assemblymember Mullin has drafted legislation that will exempt California’s remaining manufacturers from sales tax on equipment used for manufacturing. The intent of the bill is to put California businesses on equal footing with other states.
“Nearly every other state in our nation exempts equipment used for manufacturing from sales and use taxes,” said Assemblymember Mullin. “This puts California’s manufacturers in our state at a distinct disadvantage.”
According to a recent study released by Next 10, “California’s job growth has been more sluggish than many other states. This is true overall, and for manufacturing employment specifically.” Additionally, the Nonpartisan Legislative Analyst has noted that exempting the sales and use tax “would reduce ‘tax pyramiding’—an economically distortionary feature of our tax code whereby manufacturers pay sales tax on their equipment and their customers then pay additional sales tax on the final product itself. Moreover, such a policy change would bring California more in line with sales tax policies of other states.”
Assemblymember Mullin has circulated a letter to all members of the California State Senate and Assembly encouraging them to join him on this important effort to increase California’s economic competitiveness.
“Increasing the rate of our economic recovery is a high priority for both Democrats and Republicans in the legislature,” said Assemblymember Mullin. “Encouraging growth in manufacturing jobs is one of the best ways our state can increase employment for high quality, middle class jobs.”
If you would like to contact Assemblyman Mullin:
Contact
Capitol Office:
State Capitol
P.O. Box 942849
Sacramento, CA 94249-0022
Tel: (916) 319-2022
Fax: (916) 319-2122
District Office:
1528 South El Camino Real
Suite 302
San Mateo, CA 94402
Tel: (650) 349-1900
Fax: (650) 341-467