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September 1, 2009
Chamber Opposes "Nickel A Drink" Tax
 The
Garden Grove Chamber of Commerce opposes SB 558 (DeSaulnier)
which would authorize the Department of Alcoholic Beverage
Control to assess and collect a fee per drink from every person
who sells alcoholic beverages.
We believe that tax increases that single out a specific
industry or group to shoulder new taxes will kill good jobs and
harm industries essential to California’s economy. SB 558
proposes a harmful tax that can damage our hospitality industry
in Garden Grove and across the State. Furthermore, “nickel a
drink” tax is a catchy slogan it hides the fact that it will
impose a dramatic new burden on restaurants and other small
businesses in our city and throughout California at the worst
possible time.
The proposal will increase the burden on those who sell spirits,
beer and wine. SB 558 will create a fund on the backs of
businesses. SB 558 will not only force the business community to
pass along the extra tax to the consumer, it will place the tax
into a fund that may allow the Legislature to borrow from at
such times when the state is in a budget crisis. We feel this
may be another attempt by the Legislature to target tax
increases as a way of balancing the budget.
August 15, 2009
Chamber Opposes Alcohol Tax
The Garden Grove
Chamber of Commerce respectfully OPPOSES AB 1019 (Beall) which
imposes a $0.10 per drink tax on alcoholic beverages. We oppose
AB 1019 (Beall) for the following reasons:
The business community has consistently stated that the solution
to California’s revenue problems will only come from robust
economic growth and job creation. Accordingly, any changes to
the tax structure should take into account not only the need to
maintain necessary government programs but the need to foster
our state’s economic growth. Tax increases that single out a
specific industry or group to shoulder new taxes will kill good
jobs and harm industries essential to California’s economy. We
recognize that arriving at solutions to the state’s budgetary
problems is difficult, but such targeted tax increases will
hamper our economic recovery.
AB 1019 creates new government programs and spending that may
become locked into the state budget. If revenues drop, the costs
for these new programs continue and other new taxes or revenue
sources must be tapped to make up the difference.
August 1, 2009
Chamber Opposes Tobacco Tax
The Garden Grove
Chamber of Commerce opposes SB 600 (Padilla) which would impose
a new tax of $1.50 per pack of cigarettes or tobacco product. We
oppose SB 600 (Padilla) for the following reasons:
First, the business community has consistently stated that the
solution to California’s revenue problems will only come from
robust economic growth and job creation. Accordingly, any
changes to the tax structure should take into account not only
the need to maintain necessary government programs but the need
to foster our state’s economic growth. Tax increases that single
out a specific industry or group to shoulder new taxes will kill
good jobs and harm industries essential to California’s economy.
We recognize that arriving at solutions to the state’s budgetary
problems is difficult, but such targeted tax increases will
hamper our economic recovery.
Second, cigarette taxes are a declining revenue source. SB 600
creates new government programs and spending that may become
locked into the state budget. When revenues drop, the costs for
these new programs continue and other new taxes or revenue
sources must be tapped to make up the difference. Of 57 state
excise tax increases that were implemented between 2003 and
2007, only 16 of them met or exceeded the projected revenues.
Additionally, tax-paid cigarette sales in the United States have
been declining by 2.2% a year since 1990 and at a faster rate of
5.0% in fiscal year 2008.
Third, the resulting increase in the price of cigarettes
encourages consumers to seek alternative purchasing channels,
including illegal evasion. Law enforcement agencies have
concluded that there is a direct relationship between cigarette
tax increases and illegal trafficking. It may also accelerate
the growth of imports of counterfeit cigarettes manufactured in
China and many other countries.
August 1, 2009
Chamber Opposes New Tax Proposal
The Garden Grove
Chamber of Commerce respectfully opposes AB 89 (Torlakson) which
imposes a new tax of $2.10 per pack of cigarettes. We oppose AB
89 (Torlakson) for the following reasons:
First, the business community has consistently stated that the
solution to California’s revenue problems will only come from
robust economic growth and job creation. Accordingly, any
changes to the tax structure should take into account not only
the need to maintain necessary government programs but the need
to foster our state’s economic growth. Tax increases that single
out a specific industry or group to shoulder new taxes will kill
good jobs and harm industries essential to California’s economy.
We recognize that arriving at solutions to the state’s budgetary
problems is difficult, but such targeted tax increases will
hamper our economic recovery.
Second, cigarette taxes are a declining revenue source. AB 89
creates new government programs and spending that may become
locked into the state budget. When revenues drop, the costs for
these new programs continue and other new taxes or revenue
sources must be tapped to make up the difference. Of 57 state
excise tax increases that were implemented between 2003 and
2007, only 16 of them met or exceeded the projected revenues.
Additionally, tax-paid cigarette sales in the United States have
been declining by 2.2% a year since 1990 and at a faster rate of
5.0% in fiscal year 2008.
Third, the resulting increase in the price of cigarettes
encourages consumers to seek alternative purchasing channels,
including illegal evasion. Law enforcement agencies have
concluded that there is a direct relationship between cigarette
tax increases and illegal trafficking. It may also accelerate
the growth of imports of counterfeit cigarettes manufactured in
China and many other countries.
We believe AB 89 will harm the economy and further contribute to
this state’s budget shortfalls.
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