Republican candidate Kashkari focused on state corporate taxes
SAN DIEGO (CNS) – Republican gubernatorial candidate Neel Kashkari, during a stop Tuesday in San Diego, proposed a decade-long moratorium on state corporate taxes for companies that move to California and bring at least 100 new jobs, or open new manufacturing facilities.
Kashkari, who hopes to unseat Gov. Jerry Brown, announced his jobs plan during a campaign event at a skin and personal care products manufacturer.
The former U.S. assistant treasury secretary said that under his plan, any existing business currently operating outside the state that moves to California and generates at least 100 new jobs would be free from paying state corporate taxes associated with the income generated by its new operation for 10 years.
The same benefit would be extended to companies currently operating in the state that open a new manufacturing plant – on income generated by the facility. He said anti-fraud and abuse protections would be put in place on both planks.
Kashkari and other candidates have blasted Brown for policies they contend have hurt the state's economy and stymied job creation.
California's unemployment rate last month was 8.5 percent, according to the state Economic Development Department. The figure is not seasonally adjusted.
“Governor Brown may be running on his decades of experience in government, but the fact is that his failed leadership has been devastating for millions of California families – especially the 17 percent of Californians who are struggling for work,” Kashkari said. “Jerry Brown's legacy is the destruction of the middle class, and we won't let him get away with it.”
Critics of official unemployment numbers say they do not accurately reflect people who are long-term unemployed or are under-employed, such as part- time workers who would prefer full-time jobs – and often cite higher numbers.
Dan Newman, a spokesman for the Brown campaign, said in an emailed statement that “in the last four years, California has created over a million new jobs, unemployment has dropped to its lowest level since 2008, massive deficits are now solid surpluses, our credit rating is rising, and our job growth is outpacing the nation.”
The campaign of Assemblyman Tim Donnelly, R-Twin Peaks, did not immediately respond to a request for comment.
Among other provisions of Kashkari's plan:
– asking voters to cancel the high-speed rail project and divert those bond funds to water infrastructure needs;
– supporting development of the Monterey shale formation;
– creating a task force to identify impediments to developing the state's energy and environmental sectors;
– having all regulations reviewed 10-years after adoption to see if they remain viable;
– reforming the state's Environmental Quality Act to prevent abuse by special interests;
– making overtime kick-in after a 40-hour work week to provide scheduling flexibility; and
– capping non-economic personal injury rewards at $250,000 to match the state's medical malpractice regime.