In 2009, lawmakers in California slipped in a loophole on a tax law that ensured that out-of-state companies would benefit from bringing their business to the state. However, what some Californian’s did not realize was that this major tax break would limit jobs for local workers can cost $1 billion per year.
Proposition 39 aims to close that loophole and fix these issues once and for all. The proposition has gradually gained more and more support from key figures. Now Mayor Antonio Villaraigosa of Los Angeles is among them.
This new endorsement by Mayor Antonio Villaraigosa is an important step forward for the proposition in two different ways.
First of all, this is a major political and public figure that has plenty of influence on the local citizens heading to the polls. There was a big buzz when Sacramento Mayor Kevin Johnson added his name to the list of Yes voters. That was because of the implications of these environmental initiatives and revenue gains on the local workforce of the city.
Sacramento is a major player in green energy. It is a slightly different story in Los Angles, but the impact is no less impressive. LA is a major city reliant on green energy and public funding to improve prospects for workers and residents across it vast districts. This includes all the public school that will benefit from the education funding.
There is a clause in this proposition that ensures a split of the revenue from this closure between education and environmental schemes for the first five years. This includes new energy efficient improvement to the public school building. A swing to a Yes vote in LA could, therefore, prove to be influential in many ways
Then there is the fact that this new endorsement is part of a larger snowball effect across the state.
It is not just mayors and big business leaders – such as Campaign Co-Chair for Yes on Proposition 39, Tom Steyer – that see the benefit here. There is a wide list of supporters across the state from multiple disciplines. They include medical organizations, such as the California Nurses Association, American Lung Association California.
Business leaders are also heavily involved. This includes the Valley Industry & Commerce Association, Latin Business Association, and California Labor Federation. There are also major news outlets, such as the Los Angeles Times, Sacramento Bee and Oakland Tribune. This is without mentioning all the other workers, environmentalist, and politicians ready to vote Yes on Prop 39.
Mayor Antonio Villaraigosa sees the proposition as a “win-win situation” for the state and urges others to follow his lead.
The LA mayor understands the potential of this new clause and the closure of the tax loophole. The sees the main objectives here as the chance to create tens of thousands of job opportunities as California switches to this new approach. They would seek to encourage investment in the state and local economic benefits, with a wider long-term impact. As the tide continues to turn in favor of a Yes vote, it is clear that many others across California have woken up to the implications of Prop 39 and the importance of this vote.