Blogs of the LA Area Chamber

Last Tuesday, the Los Angeles City Council directed Chief Administrative Officer Miguel Santana to begin work on a new pension tier for new civilian hires. We applaud this action and urge the City Council to create a new tier that will greatly reduce the pension obligations of the City in future years.

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California has long been known as the Golden State — the destination for entrepreneurs and dream-seekers and home to Hollywood and Silicon Valley. Through groundbreaking environmental leadership, we have also earned a reputation as the green state. In 2010, California celebrated the 40th anniversary of the California Environmental Quality Act (CEQA), which over the years has contributed to cleaner air, cleaner water and better environmental protection for our communities. 

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The citizens of California are angry about public pension abuse and largesse. How else can you interpret the overwhelming votes for pension reform in San Diego and San Jose?

In October of last year, Gov. Jerry Brown provided a roadmap for state pension reform that was fair for state employees and for California Taxpayers. The Chamber immediately endorsed the plan. But as the clock runs out on the 2012 legislative session in Sacramento, the State Senate and State Assembly have yet to respond.

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The No. 1 tax complaint of businesses in Los Angeles is the gross receipts tax. Statements like "overly burdensome" and "complicated and confusing" are part of every conversation. While the City has enviable assets that represent the foundation for the return to a booming economy, businesses cite the gross receipts tax structure as one of the top reasons for locating or expanding elsewhere.

The City of Los Angeles has the highest gross receipts tax rate in L.A. County and one of the highest in the nation. The tax structure was put in place decades ago when employers were less mobile. In today's 21st Century economy, companies that pay the tax at the highest rate are the most mobile and the easiest to locate outside the city limits or in another state.

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