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Reasons to Say Yes to Proposition 39 of the 2012 Ballot

As a quick summary, Proposition 39 would eliminate the two options that companies currently have in declaring their taxable income. Before, companies can choose which income they would declare so they’ll pay a lower tax. If this proposition will be approved, taxes will now be based on total sales which will apply to all companies. Although many companies would be affected, I’d like to point some advantages that this proposition will bring.

Tax system will become consistent, clear and fair – This is the main point why this proposition was created. Since there will now be a single basis for taxable income, every company will be pay taxes according to the total sales. While there is a possibility that several companies will be paying more than what they usually pay, there is a possibility that there are also companies who will now be paying less. The bottom line here is that everyone is taxed fairly without exception.

Encourage companies to build infrastructures and offices without additional penalties – This is for me the big advantage that companies will have if this proposition is approved. Before, some companies like Amazon and Apple are hesitant to build offices in California because they will be taxed according to their assets. If this proposition 39 will be approved, they might be paying more taxes based on total sales but they won’t be paying additional taxes if they decide to build offices and facilities in California.

Increase revenue for the government – as we all know, taxes are what the government uses to implement their programs. If this proposition will be approved, more taxes revenue is projected to be collected by the government. This increase in tax revenue can translate to better services, better public structures and more money to be spent on programs that will benefit the general public. Everyone in the state including the companies will benefit from the additional taxes that will be collected.

Increase budget for education and clean energy – California is one of the active states that is pushing for cleaning energy. If Proposition 39 will be approved, more money will be spent to educate the people about the importance of renewable energy resources. This can also mean a bigger budget for education. A bigger budget means more schools will be constructed and education will be made available to more students.

If I’m the owner of a company, it won’t matter to me if the government will charge more taxes as long as I can see that the tax revenues are spent well by the government. Personally, I’m not looking at what will the company get in return as long as more people including my family and children get better public services from the government. From what I see in this Proposition 39, it’s a win-win situation for the companies, for the government and the people of California. If you think that Proposition 39 benefits you, your family and everyone in California, then go ahead and vote yes to Proposition 39 in the 2012 ballot.

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