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

Activism

Oakland Post: Week of December 18 – 24, 2024

The printed Weekly Edition of the Oakland Post: Week of December 18 – 24, 2024

Published

2 days ago

December 20, 2024

Oakland Post

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BWOPA Honors Black Leadership and Legacy at 2024 Ella Hill Hutch Awards Dinner

On Dec. 5, BWOPA held its Annual Ella Hill Hutch Awards Ceremony, at the Fairmont Claremont Hotel in the Oakland/Berkeley Hills. At the event, the group comprised of Black women from various professional backgrounds, honored distinguished local and state leaders whose contributions have shaped civic engagement and advanced critical social issues impacting Black communities.

Published

4 days ago

December 18, 2024

Oakland Post

L-R: BWOPA State Executive Director LaNiece Jones; State Asm. Mia Bonta; BWOPA 2024 Man of The Year/Urban League SFBA CEO Ken Maxey; BWOPA State President Hon. Dezie Woods-Jones; State Senator Lola Smallwood-Cuevas; Rowena Brown, Oakland Councilmember At-Large, Elect; BWOPA State Regional Director Vashone Huff. Courtesy photo.

By Oakland Post Staff

Black Women Organized for Political Action (BWOPA) is a statewide non-profit advocacy and membership organization committed to solving problems affecting Black Californians.

On Dec. 5, BWOPA held its Annual Ella Hill Hutch Awards Ceremony, at the Fairmont Claremont Hotel in the Oakland/Berkeley Hills.

At the event, the group comprised of Black women from various professional backgrounds, honored distinguished local and state leaders whose contributions have shaped civic engagement and advanced critical social issues impacting Black communities.

The evening was hosted by Dr. Shawna Charles, founder of The Charles Communications Group (CCG) headquartered in Los Angeles. Charles served as mistress of ceremonies.

With a track record of elevating voices and empowering communities, Charles’ leadership and insight brought a certain dynamism to the celebration.

“Each year, this event not only celebrates the enduring legacy of our beloved BWOPA founding member, Ella Hill Hutch, but also reaffirms and amplifies our unwavering commitment to building and sustaining Black political power across California,” said Dezie Woods-Jones, BWOPA founding member and State president.

“Ella Hill Hutch’s trailblazing leadership continues to inspire us as we forge ahead, empowering Black women to lead, advocate, and shape a more equitable future for all,” added Woods-Jones.

This year’s event introduced the DWJ Rising Star Award, honoring young leaders like Solano County Board Supervisors-elect Cassandra James, Danielle Motley-Lewis, Naomi Waters and newly elected State Assemblymember elect Rhodesia Ransom (D-Stockton).

According to organizers, the awardees all exemplify “the next generation of changemakers.”

Other awardees included:

Lifetime Achievement Awardees: Congresswoman Barbara Lee (D-CA-12) and Alameda County Supervisor Keith Carson
Man of the Year: Kenneth Maxey, CEO of the Greater SF Bay Area Urban League
President’s Corporate Award: Yvette Radford, Kaiser Permanente
In the Spirit of Ella State and Chapter Awards: Dr. Carolyn Greene, Dr. Marcella K. Smith, Dr. Carolyn Drake, Tinisch Hollins, Jackie Jones, Gloria Burgess Johnson, Tamika L’Ecluse, Ellen Nash, Betty Reid Soskin, and Ay’Anna Moody.

BWOPA also celebrated local champions across its chapters, including leaders in voter education, healthcare, criminal justice reform, and community advocacy.

In a statement, BWOPA said, “Honoring Ella Hill Hutch’s legacy, BWOPA recognizes her pioneering efforts as the first Black woman elected to the San Francisco Board of Supervisors. Her tireless work amplifying underrepresented voices continues to inspire BWOPA’s mission to build Black political power across California.”

“We extend our heartfelt thanks to our members, partners and allies who believe in BWOPA’s vision to invest in building power for Black women’s leadership,” said LaNiece Jones, BWOPA State executive director. “Your support ensures that Black women have a voice at decision-making tables locally, regionally, statewide, and nationally, advancing diversity and equity in leadership spaces.”

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Council of Islamic Relations Applauds Alameda County Decision to Divest $32M from Caterpillar

The divestment from Caterpillar, a company criticized for its human rights abuses globally—including the destruction of Palestinian homes, infrastructure, and agriculture, as well as in the U.S. prison-industrial complex, border militarization, and immigration detention centers—is a significant step in ensuring that Alameda County’s financial resources do not perpetuate harm.

Published

1 week ago

December 14, 2024

Oakland Post

CAIR-SFBA Policy Coordinator Musa Tariq. Courtesy photo.

Special to The Post

The San Francisco Bay Area office of the Council on American-Islamic Relations (CAIR-SFBA), the nation’s largest Muslim civil rights and advocacy organization, this week welcomed the Alameda County Board of Supervisors’ decision to divest $32 million in public funds from Caterpillar and unanimously commit to adopting an ethical investment policy.

The Board’s decision follows months of advocacy by Bay Area Divest!, a coalition of community organizations calling for accountability in public investments.

In November, CAIR welcomed the reported freeze on the delivery of bulldozers to Israel as an “implicit admission” by the Biden Administration that the far-right Netanyahu government is using that equipment in the ethnic cleansing of Gaza.

CAIR-SFBA Policy Coordinator Musa Tariq said:

“This is a historic moment for Alameda County, demonstrating the power of community advocacy and the County’s leadership in ethical governance. The decision to divest from Caterpillar sends a clear message that public funds should not support corporations complicit in human rights violations.”

In addition to divesting from Caterpillar, the Board voted to move forward with developing a comprehensive Ethical Investment Policy, recommended by District 5 Supervisor Keith Carson.

This policy will include criteria to exclude “investments in industries, corporations, or governments that perpetuate harm to communities and the planet,” such as fossil fuel extraction, weapons production, and entities involved in war crimes, apartheid, and other severe human rights violations.

Alameda County has a proud legacy of socially responsible investment. In 1985, the County divested from South Africa to protest apartheid, and in 1996, it barred investments in companies doing business with Burma due to human rights abuses.

“This forward-thinking policy positions Alameda County as a leader in socially responsible investing,” added Tariq. “By committing to craft the policy within 90 days and implement it within six months, the County has set an ambitious and commendable timeline.”

CAIR-SFBA is an office of CAIR, America’s largest Muslim civil liberties and advocacy organization. Its mission is to enhance the understanding of Islam, protect civil rights, promote justice, and empower American Muslims.