Business-tax proposal could raise $1.1 billion

State legislators may suspend a business-tax deduction to pump an additional $1.1 billion into California’s coffers — a proposal that small businesses fear could hurt their bottom line.

Currently, businesses that lose money one year can take a tax deduction in the next year they turn a profit. Under the proposal from the Assembly Budget Committee, that deduction would be tabled for three years — but could be claimed in year four.

Although the proposal would affect all businesses in California, smaller firms say it will hit them the hardest.

Ninety-nine percent of businesses operating in San Francisco are small businesses with fewer than 100 employees, according to Al Dixon, director of the San Francisco Small Business Development Center.

bwinegarner@sfexaminer.com

Bay Area NewsLocalTransittransportation

If you find our journalism valuable and relevant, please consider joining our Examiner membership program.
Find out more at www.sfexaminer.com/join/

Just Posted

Indoor dining at John’s Grill. (Kevin N. Hume/S.F. Examiner)
State’s mask mandate to continue until June 15 reopening despite CDC guidance

By Eli Walsh Bay City News Foundation California will wait until next… Continue reading

International Bird Rescue helped save Bay Area birds that were contaminated by mysterious goo in 2015. (Mike Koozmin/S.F. Examiner file photo)
International Bird Rescue marks 50 years of wildlife protection

Group established in wake of massive oil spill continues essential rehabilitation, research

A cyclist heads past an artistic sign onto Page Street, a Slow Street, at Stanyan Street near Golden Gate Park on Monday, April 12, 2021. (Kevin N. Hume/S.F. Examiner)
Push to make street closures permanent meets with resistance

Hastily thrown together during the pandemic, Slow Streets program now struggles to build support

Agnes Liang, who will be a senior at Mission High School, is running for one of the two student representative seats on the San Francisco Unified School District Board of Education. (Kevin N. Hume/S.F. Examiner)
Turbulent year on school board leaves student delegates undeterred

Around this time last year, Shavonne Hines-Foster and Kathya Correa Almanza were… Continue reading

Most Read