Shall the City specify that certain partnerships and other businesses are subject to the City’s payroll expense tax and expand the payroll expense tax exemption for small businesses so that businesses with annual payroll expenses of $250,000 or less would not have to pay the tax?
This proposition seems awfully similar to what Senator Obama is proposing in his tax plans. No tax for small businesses making $250,000 or less. Tax the shareholders and partners.
It is a plan to “spread the wealth” around if you will.
I will probably abstain from voting on this issue. Why can’t we just tax both? More money for the City’s coffers.
You should read this one more carefully. Prop Q is a tax increase on the small businesses that are the lifeblood of our city. It is disguised as a tax cut, but is really a substantial tax increase on businesses with as few as 3 or 4 employees. Prop Q redefines ‘payroll’, deviating from the state and federal definitions so that the City can start charging a 1.5% income tax on the profits of small businesses. It’s not a tax on small businesses that *make* over $250,000 per year, it is a tax on small businesses that *pay their employees* over $250,000 per year. That’s pretty much every business you know.
The City coffers don’t need this money…the owners of the small businesses you depend on every do.
Vote no on Q!