Business

Opinion: Proposed Business Tax May Head to the November Ballot. Will It Help or Hurt?

Published

4 years ago

July 9, 2020

On July 14, the Oakland City Council will consider a proposal for a major change in the Oakland Business Tax. According to the proposed rate schedule, businesses could see rate increases as high as approximately 300% – 500%.

Why should you care? Because you will pay for the increases. Unless a business shuts down, tax increases are always passed through to consumers.

Oakland is facing a $122 Million deficit and according to proponents of the measure, major new taxes are necessary to stave off insolvency. Years of mismanagement, major losses in litigation, and failure to live within its means have brought the city to this crisis.

But this tax proposal is not the answer. Businesses that are reeling from the Coronavirus Pandemic have laid off, furloughed, or cut the pay of thousands of workers. As they try to figure out how to continue in these horrific times, the city is dumping fuel on the fire that may cause far greater damage.

If the city miscalculates the ability of businesses to absorb large tax increases and that results in businesses shutting down or leaving Oakland, the city will not receive increased tax revenues. Worse, it will lose the money that is currently being paid. That will only increase the deficit and hasten the financial demise of the city.

Sadly, the City Council received very little support from city staff in understanding city revenue projections in our post-pandemic situation. When asked how much money the city could raise from businesses that are struggling through the pandemic, the city’s finance department expert said that he did not know. He was unable to make any projections on business receipts during and after the pandemic. This prompted two questions: Will Oakland businesses be able to survive at all, and, if so, will they be able to pay new absorbent taxes?

Businesses at risk include industrial companies that pay family-sustaining wages to workers who do not have advanced college degrees. A miscalculation on tax increases that drives these companies out of Oakland will also drive those jobs away.

There is also the question of whether Oakland can attract new businesses and jobs when it is creating major tax disincentives. Will developers be able to attract new companies when Oakland proposes unprecedented tax increases.

We have worked with District Two Councilmember Nikki Bas, one of the proposed ballot measure authors. We appreciate her willingness to listen to our concerns and her acknowledgment that our issues are real. She made some modifications to the tax proposal, but not nearly enough to eliminate our fear that the proposed tax will hurt business and the city much more than it will help.

If large businesses close or leave, they will take their jobs with them. Unfortunately, major tax increases make it highly unlikely that new businesses will come and bring replacement jobs with them. Certainly, they will not bring family-sustaining industrial jobs to Oakland.

District Three Councilmember Lynette Gipson McElhaney raised many concerns about the underlying assumptions and rationale for the tax increases and the effect they could have on the city and its residents. She was joined by numerous stakeholders who asked the authors to slow down so that the potential effects of the proposed measure could be thoroughly analyzed.

The Council subcommittee acknowledged shortcomings in the analysis and directed staff to rush through additional analysis. They know that additional amendments should be considered, still, they forged ahead to bring the matter to the full Council on July 14.

The stakes are very high. This tax proposal could be a major blow to Oakland. There are still a few days to fix this and arrive at a win for everyone. We urge every concerned citizen to tell the Council to consider all relevant factors and do not put a measure on the ballot that at best is half baked.

Again, why should you care? Because you will pay the price and suffer the consequences!

Greg McConnell, The McConnell Group

Posts by Greg McConnell, The McConnell Group

Bay Area

State Controller Malia Cohen Keynote Speaker at S.F. Wealth Conference

California State Controller Malia Cohen delivered the keynote speech to over 50 business women at the Black Wealth Brunch held on March 28 at the War Memorial and Performing Arts Center at 301 Van Ness Ave. in San Francisco. The Enterprising Women Networking SF Chapter of the American Business Women’s Association (ABWA) hosted the Green Room event to launch its platform designed to close the racial wealth gap in Black and Brown communities.

Published

4 days ago

April 20, 2024

Oakland Post

American Business Women’s Association Vice President Velma Landers, left, with California State Controller Malia Cohen (center), and ABWA President LaRonda Smith at the Enterprising Women Networking SF Chapter of the ABWA at the Black Wealth Brunch.

By Carla Thomas

The Enterprising Women Networking SF Chapter of the American Business Women’s Association (ABWA) hosted the Green Room event to launch its platform designed to close the racial wealth gap in Black and Brown communities.

“Our goal is to educate Black and Brown families in the masses about financial wellness, wealth building, and how to protect and preserve wealth,” said ABWA San Francisco Chapter President LaRonda Smith.

ABWA’s mission is to bring together businesswomen of diverse occupations and provide opportunities for them to help themselves and others grow personally and professionally through leadership, education, networking support, and national recognition.

“This day is about recognizing influential women, hearing from an accomplished woman as our keynote speaker and allowing women to come together as powerful people,” said ABWA SF Chapter Vice President Velma Landers.

More than 60 attendees dined on the culinary delights of Chef Sharon Lee of The Spot catering, which included a full soul food brunch of skewered shrimp, chicken, blackened salmon, and mac and cheese.

Cohen discussed the many economic disparities women and people of color face. From pay equity to financial literacy, Cohen shared not only statistics, but was excited about a new solution in motion which entailed partnering with Californians for Financial Education.

“I want everyone to reach their full potential,” she said. “Just a few weeks ago in Sacramento, I partnered with an organization, Californians for Financial Education.

“We gathered 990 signatures and submitted it to the [California] Secretary of State to get an initiative on the ballot that guarantees personal finance courses for every public school kid in the state of California.

“Every California student deserves an equal opportunity to learn about filing taxes, interest rates, budgets, and understanding the impact of credit scores. The way we begin to do that is to teach it,” Cohen said.

By equipping students with information, Cohen hopes to close the financial wealth gap, and give everyone an opportunity to reach their full financial potential. “They have to first be equipped with the information and education is the key. Then all we need are opportunities to step into spaces and places of power.”

Cohen went on to share that in her own upbringing, she was not guided on financial principles that could jump start her finances. “Communities of color don’t have the same information and I don’t know about you, but I did not grow up listening to my parents discussing their assets, their investments, and diversifying their portfolio. This is the kind of nomenclature and language we are trying to introduce to our future generations so we can pivot from a life of poverty so we can pivot away and never return to poverty.”

Cohen urged audience members to pass the initiative on the November 2024 ballot.

“When we come together as women, uplift women, and support women, we all win. By networking and learning together, we can continue to build generational wealth,” said Landers. “Passing a powerful initiative will ensure the next generation of California students will be empowered to make more informed financial decisions, decisions that will last them a lifetime.”

Oakland Post

Posts by Oakland Post

Business

Black Business Summit Focuses on Equity, Access and Data

The California African American Chamber of Commerce hosted its second annual “State of the California African American Economy Summit,” with the aim of bolstering Black economic influence through education and fellowship. Held Jan. 24 to Jan. 25 at the Westin Los Angeles Airport Hotel, the convention brought together some of the most influential Black business leaders, policy makers and economic thinkers in the state. The discussions focused on a wide range of economic topics pertinent to California’s African American business community, including policy, government contracts, and equity, and more.

Published

5 days ago

April 20, 2024

Oakland Post

Toks Omishakin, Secretary of the California State Transportation Agency (CALSTA), answers questions from concerned entrepreneurs frustrated with a lack of follow-up from the state. January 24, 2024 at the Westin Los Angeles Airport Hotel, Lost Angeles, Calif. Photo by Solomon O. Smith

By Solomon O. Smith, California Black Media

The California African American Chamber of Commerce hosted its second annual “State of the California African American Economy Summit,” with the aim of bolstering Black economic influence through education and fellowship.

Held Jan. 24 to Jan. 25 at the Westin Los Angeles Airport Hotel, the convention brought together some of the most influential Black business leaders, policy makers and economic thinkers in the state. The discussions focused on a wide range of economic topics pertinent to California’s African American business community, including policy, government contracts, and equity, and more.

Toks Omishakin, Secretary of the California State Transportation Agency (CALSTA) was a guest at the event. He told attendees about his department’s efforts to increase access for Black business owners.

“One thing I’m taking away from this for sure is we’re going to have to do a better job of connecting through your chambers of all these opportunities of billions of dollars that are coming down the pike. I’m honestly disappointed that people don’t know, so we’ll do better,” said Omishakin.

Lueathel Seawood, the president of the African American Chamber of Commerce of San Joaquin County, expressed frustration with obtaining federal contracts for small businesses, and completing the process. She observed that once a small business was certified as DBE, a Disadvantaged Business Enterprises, there was little help getting to the next step.

Omishakin admitted there is more work to be done to help them complete the process and include them in upcoming projects. However, the high-speed rail system expansion by the California High-Speed Rail Authority has set a goal of 30% participation from small businesses — only 10 percent is set aside for DBE.

The importance of Diversity, Equity and Inclusion (DEI) in economics was reinforced during the “State of the California Economy” talk led by author and economist Julianne Malveaux, and Anthony Asadullah Samad, Executive Director of the Mervyn Dymally African American Political and Economic Institute (MDAAPEI) at California State University, Dominguez Hills.

Assaults on DEI disproportionately affect women of color and Black women, according to Malveaux. When asked what role the loss of DEI might serve in economics, she suggested a more sinister purpose.

“The genesis of all this is anti-blackness. So, your question about how this fits into the economy is economic exclusion, that essentially has been promoted as public policy,” said Malveaux.

The most anticipated speaker at the event was Janice Bryant Howroyd known affectionately to her peers as “JBH.” She is one of the first Black women to run and own a multi-billion-dollar company. Her company ActOne Group, is one of the largest, and most recognized, hiring, staffing and human resources firms in the world. She is the author of “Acting Up” and has a profile on Forbes.

Chairman of the board of directors of the California African American Chamber of Commerce, Timothy Alan Simon, a lawyer and the first Black Appointments Secretary in the Office of the Governor of California, moderated. They discussed the state of Black entrepreneurship in the country and Howroyd gave advice to other business owners.

“We look to inspire and educate,” said Howroyd. “Inspiration is great but when I’ve got people’s attention, I want to teach them something.”