Monthly Archives January 2013

Stunning: California Imposes 5-Year Retroactive Tax Bill on Startup Investors

Thanks to an entrepreneur, Brian Overstreet, we in California are just starting to learn that the state Franchise Tax Board has cancelled the Qualified Small Business (QSB) tax benefits and is retroactively denying the benefits for the past five years. Overstreet explained in a column in Xconomy that the QSB was designed to incentivize people starting business to keep them in California. If so, founders and early investors could exclude 50 percent of the taxable gain on the sale of their stock—meaning about 4.5 percent instead of 9 percent (now nearly 13 percent due to Proposition 30). “Without the QSB provision,
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California Politicians Owe Golfer Phil Mickelson an Apology

Political correctness in California has become so bizarre that a high-achieving citizen paying huge amounts in taxes is ostracized if he even mildly complains about those taxes. Pro golfer Phil Mickelson has suggested “drastic changes” were in store for him – including possibly moving out of California – because of changes in federal and state taxes that puts him in an absurdly high tax category. The big tax bite was the reason behind his decision not to be part of the new ownership group of the San Diego Padres. But the nation now has a class-warrior chorus that will defend
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California: Substantial Financial Sector Employment Losses

The Los Angeles and San Francisco areas are showing big losses in financial services jobs with work being shifted to other regions of the nation. In the 2007-2012 period, the losses in the Los Angeles area were 21 percent, while in the San Francisco area the losses reached 17 percent. Combined, their losses exceeded that of the New York combined statistical area, which had three times as many financial sector jobs in 2007. San Diego also experienced a 5 percent job loss, while Sacramento’s loss was miniscule. Overall, California lost 17 percent of its financial sector jobs between 2007 and
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