Click on right here for a whole record of our election suggestions.
Santa Clara has not up to date its enterprise tax since 1992.
At present, the town’s prime 10 companies, which embody Intel, Utilized Supplies and Nvidia, have a complete market cap of greater than $1 trillion. But, below the present construction, every pays a most enterprise tax to the town of $500 a yr.
That’s ridiculous.
In the meantime, Santa Clara faces a $27 million finances deficit that might prohibit the town’s skill to fulfill its public security, infrastructure and fundamental providers wants, each now and for the longer term.
The Metropolis Council surveyed the enterprise neighborhood and voted in July to position a measure on the poll that may replace the enterprise tax. Voters ought to approve Measure H within the Nov. 8 election.
The present enterprise tax doesn't embody an annual adjustment tied to the buyer worth index. All instructed, it generates about $1 million yearly.
Measure H would generate an estimated $6 million a yr. It will institute a flat tax of $45 per worker on companies and $15 per rental unit on landlords. An organization with 10 workers, for instance, would pay $450 a yr.
The town estimates that 60% of the revenues generated by the enterprise tax would come from the biggest 168 of Santa Clara’s 6,000 companies. Measure H features a provision that may regulate the quantity of the tax yearly based mostly on the area’s shopper worth index.
Opponents, together with the Silicon Valley Central Chamber of Commerce, argue that as an alternative of elevating the enterprise tax, the town ought to dip into its reserves to fulfill its finances wants. However Santa Clara has already seen its reserves drop from 25% to a precarious 15% of the overall fund.
Measure H would create a enterprise tax that's in keeping with different cities and would assist it deal with finances shortfalls. Voters ought to approve Measure H.