California Whines About Nevada Ads

September 24, 2009

            California authorities ought to grow up and/or learn how to compete. Especially Assemblyman Jose Solorio (D-Santa Ana).
            Seems Jose was recently “outraged by the nastiness of their tone,” with reference to internet ads recently posted by the Nevada Development Authority.
            Check out and draw your own conclusion. The ads are actually pretty clever, in our humble opinion. Moreover, the truth hurts.
            “I was pretty outraged by the nastiness of their tone,” quoth Jose in a recent L.A. Times column. “It’s one thing to compare states in a factual way, but when you’re doing nasty ads veiled in humor which dehumanize Californians, that’s over the top.”
            We guess Jose was offended by the monkey in one of the ads.
            Notes A. Somer Hollingsworth, chief exec of the Nevada Development Authority, “I understand what they’re going through, and I expected something like this…..We must have struck a nerve.”
            Struck a nerve, indeed!
            So, while the California defenders wring their hands and pontificate, consider the context. The California legislature recently passed a Budget Act, which among other things:
1.     Increases personal income tax rates by 0.25% beginning 1/1/09;
2.     Increases the alternative minimum tax rate by 0.25% beginning 1/1/09; and
3.     Expands and codifies the rules under which a corporation is considered to be “doing business” in California for purposes of the state franchise tax.
Is it any wonder that Nevada has found the time ripe to recruit potential
California emigres?
            And speaking of which, we hear San Francisco Chief Poobah Gavin Newsom (rumored to be interested in succeeding Ahnold) will introduce legislation this fall which would charge retailers a “fee” if they sell “sugary” beverages.
            Now, don’t confuse this proposal with others propounded by a variety of fat policers (including Obama)–this tag would hit the stores themselves, thus only indirectly the consumers of the offending beverages.
            The city attorney has apparently already warned Gavin that ‘The City’ would probably be sued over the matter, but Gavin nonetheless thinks it is worth the risk to try to mitigate what some think is a leading cause of obesity and diabetes.
            And if all of that’s not enough, wait ’til California latches on to the latest novel levy being suggested by the Massachusetts legislature: a surcharge on dogs! An annual $3 state surcharge on municipal licensing fees which dog owners must pay!
            And people wonder why folks and their businesses are migrating to Nevada!
CONSULT YOUR TAX ADVISOR – This article contains general information about various tax matters. You should consult your CPA regarding the implications to your own particular situation.
           Jeff Quinn, the author of this article, is a shareholder in Ashley Quinn, CPAs and Consultants, Ltd., with offices in Incline Village and Reno. He can be reached at 831-7288, and welcomes comments below.


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