SPLIT CITY, SPLIT GROSS TAX RECEIPTS?Byline: Harrison Sheppard Staff Writer SHERMAN OAKS - Supporters of San Fernando Valley San Fernando Valley Valley, southern California, U.S. Northwest of central Los Angeles, the valley is bounded by the San Gabriel, Santa Susana, and Santa Monica mountains and the Simi Hills. secession released a business platform Monday that called for cutting the new city's gross receipts tax A gross receipts tax, sometimes referred to as a gross excise tax, is a tax on the total gross revenues of a company, regardless of their source. It is similar to a sales tax, but it is levied on the seller of goods or services rather than the consumer. in half within 18 months of incorporation to create a more business-friendly environment. The existing Los Angeles city gross receipts tax in its present form would provide more than $100 million in revenue to the Valley if it became a city, but the tax is one of the biggest complaints among businesses in Los Angeles. Secession supporters said they believe the new city can cut the tax while compensating for the loss of more than $50 million in tax revenue with increased sales tax sales tax, levy on the sale of goods or services, generally calculated as a percentage of the selling price, and sometimes called a purchase tax. It is usually collected in the form of an extra charge by the retailer, who remits the tax to the government. and greater efficiencies in government. They also think smaller governments on both sides of the Santa Monica Mountains The Santa Monica Mountains are a low transverse range in southern California in the United States. Geography They run for approximately 40 mi (64 km) east-west from the Hollywood Hills in Los Angeles to Point Mugu in Ventura County. will be positive developments for both cities. ``We believe it creates a healthy competition between the Valley city and the city on the other side of the hill that will lead to a more business-friendly environment on both sides of the hill,'' said attorney Fred Gaines, chairman of the Valley Industry and Commerce Association. But secession opponents noted that only the mayor and city council of the proposed new city can cut the tax, and only two out of the 121 candidates were present to support the business platform Monday. Rusty Hammer, president of the Los Angeles Area Chamber of Commerce, which opposes secession, said it is easy to make promises, but it is not clear they can deliver. He noted that most businesses in Los Angeles object to the tax, and the city is in the midst Adv. 1. in the midst - the middle or central part or point; "in the midst of the forest"; "could he walk out in the midst of his piece?" midmost of efforts to reform it. ``To say the cut in one is going to result in an increase in revenue in the other, without some kind of model that demonstrates that is kind of like voodoo economics Voodoo Economics A slanderous term used by President George H. W. Bush in reference to President Reagan's economic policies known as Reaganomics. Notes: Before President Bush became Reagan's Vice President, he viewed his eventual running mate's economic policies less then ,'' Hammer said. ``Where's the evidence or proof that one is going to lead to another? You can say anything, but where's the proof?'' |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion