Friday, May 2, 2014

CAMPAIGN PROMISE UPDATE!

Do you guys remember one of my articles about the campaign promises of the final two candidates for the mayor of Los Angeles Eric Garcetti and Wendy Gruel? Both candidates were against the city business taxes and said they would abolish it. A very surprising promise by any democrat, right? But they promised...

Just to refresh your memories, Los Angeles demands a "gross receipt" based sales tax if your business is located in Los Angeles. This tax has nothing to do with earnings or losses of your company, it is based on the gross receipt of your yearly income. A totally absurd idea -- just ask any business man who has ever paid taxes after a losing year in business, like almost anybody in the construction industry for the last 4-5 years.

Fast forward. Eric Garcetti is the winner of the runoff with Wendy Gruel. A few weeks ago I was invited to a dinner with Garcetti, and another two hundred or so people. He was very nice, talkative, a very mayoral figure. When I found myself shaking hands with him, I just had to ask him about this promise. It caught him by surprise; he wasn't prepared for a question like that. The only answer he had was, that is a very difficult situation and he has no real answer how to replenish the city's lost revenue if they abolish this tax. He quickly turned to another person to shake hands with.

Just another campaign promise up in smoke.

Re-posted from our newsletter originally sent on 2/15/2014