Business

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

Published

6 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

Activism

Oakland Post: Week of April 1 – 7, 2026

The printed Weekly Edition of the Oakland Post: Week of April 1 – 7, 2026

Published

4 hours ago

April 6, 2026

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Oakland Post: Week of March 18 – 24, 2026

The printed Weekly Edition of the Oakland Post: Week of March 18 – 24, 2026

Published

2 weeks ago

March 22, 2026

Oakland Post

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Advice

Financial Wellness and Mental Health: Managing Money Stress in College 

While everyone’s financial situation is unique, several common sources of stress have the potential to strain your financial health. These include financial and economic uncertainty, existing debts, unexpected expenses, and mental or physical health changes. Financial stress may differ from situation to situation, but understanding the factors contributing to yours may help you begin to craft a plan for your unique circumstances.

Published

3 weeks ago

March 17, 2026

Oakland Post

Sponsored by JPMorganChase

As a college student, managing financial responsibilities can be stressful.

If you’ve found yourself staying up late thinking about your finances or just feeling anxious overall about your financial future, you’re not alone. In one survey, 78% of college students who reported financial stress had negative impacts on their mental health, and 59% considered dropping out. While finances can impact overall stress, taking steps to manage your finances can support your mental, emotional and physical well-being.

When it comes to money, the sources of stress may look different for each student, but identifying the underlying causes and setting goals accordingly may help you feel more confident about your financial future.

Consider these strategies to help improve your financial wellness and reduce stress.

Understand what causes financial stress

2. Determine your financial priorities

Start by reflecting on your financial priorities. For students this often includes paying for school or paying off student loans, studying abroad, saving for spring break, building an emergency fund, paying down credit card debt or buying a car. Name the milestones that are most important to you, and plan accordingly.

3. Create a plan and stick to it

While setting actionable goals starts you on the journey to better financial health, it’s essential to craft a plan to follow through. Identifying and committing to a savings plan may give you a greater sense of control over your finances, which may help reduce your stress. Creating and sticking to a budget allows you to better track where your money is going so you may spend less and save more.

4. Pay down debt

Many students have some form of debt and want to make progress toward reducing their debt obligations. One option is the debt avalanche method, which focuses on paying off your debt with the highest interest rate first, then moving on to the debt with the next-highest interest rate. Another is the debt snowball method, which builds momentum by paying off your smallest debt balance, and then working your way up to the largest amounts.

5. Build your financial resilience

Some financial stress may be inevitable, but building financial resilience may allow you to overcome obstacles more easily. The more you learn about managing your money, for instance, the more prepared you’ll feel if the unexpected happens. Growing your emergency savings also may increase resilience since you’ll be more financially prepared to cover unexpected expenses or pay your living expenses.

6. Seek help and support

Many colleges have resources to help students experiencing financial stress, like financial literacy courses or funds that provide some assistance for students in need. Talk to your admissions counselor or advisor about your concerns, and they can direct you to sources of support. Your school’s counseling center can also be a great resource for mental health assistance if you’re struggling with financial stress.

The bottom line

Financial stress can affect college students’ health and wellbeing, but it doesn’t have to derail your dreams. Setting smart financial goals and developing simple plans to achieve them may help ease your stress. Revisit and adjust your plan as needed to ensure it continues to work for you, and seek additional support on campus as needed to help keep you on track.

 JPMorgan Chase Bank, N.A. Member FDIC