CAWA JOINS FIGHT TO STOP MORE TAXES
ON CALIFORNIA BUSINESSES AND INDIVIDUALS

Californians have already been hit with $12.5 billion in new taxes in 2009 alone.  Now more proposals are underway to raise taxes and fees by billions more. These proposals will have a direct impact on your bottom line as a business owner.  That is why CAWA has joined the fight to stop higher and more taxes by joining two active coalitions:  Californians Against Higher Taxes and Californians Against Higher Property Taxes.

The California business community understands that more taxes will not solve the state budget crisis; they will only hurt business, families, cost jobs and stifle economic recovery.  Unfortunately policymakers in Sacramento are proposing a number of additional tax increases including: 

~ Split Roll Property Tax for Non Residential Property - will increase taxes on your buildings, warehouses and manufacturing plants including rent hikes for those of you that lease property.

~ Energy Tax - proposed as a "pollution tax" - will drive up your costs for gas prices and thus delivery of parts.

~ Business Net Receipts Tax (BNRT) and related changes to existing tax structure - you would subtract from  your gross receipts the costs you pay to other businesses for the purchase of materials and services (like auto parts and tools), then pay a tax of about 4 percent on the difference.  You could not subtract the key expenses of payroll or interest payments.  While the BNRT would be paid by businesses in every industry, small businesses with annual gross receipts of less than $500,000 would be exempt.

In addition, other proposals by special interests want to raise taxes that will increase the costs of consumer goods, vehicle licenses, beverages and internet purchases. They even want to tax services such as nursery schools, auto repairs and funeral services!  Other tax proposals on the table include higher property taxes, increased taxes on small business and independent contractors, and increased taxes on high-tech and biotech companies.

Decisions on some of these proposals are currently being considered by the Commission on the 21^st Century Economy and a decision is expected soon. 

You Can Help!  CAWA and the business community in California believe that the solution to Californian's revenue problems will come from robust economic growth and job creation.  For more information about the detrimental effects these tax increases will have on your business and California's economy or to become a member of these coalitions visit:

Californians Against Higher Taxes
www.morejobsnottaxes.com

Californians Against Higher Property Taxes
www.stophigherpropertytaxes.org

For more information contact CAWA Director of Government Affairs,
Jennifer Zins at Jennifer@pzallc.com or  916.871.0603.

Founded in 1955, CAWA is a nonprofit trade organization representing automotive jobbers, warehouse distributors, retailers, manufacturers and manufacturer's representatives in California, Nevada and Arizona.  CAWA's mission is to provide communications, education, legislative and regulatory advocacy and group purchasing of services for its members while promoting the automotive aftermarket industry.

For additional information about CAWA and for the latest industry news, go to www.cawa.org.