Winners and Losers – April 23

Winners and Losers – April 23

Tim Anaya – Senior Director of Communications and PRI’s Sacramento Office

Winner:  CA Businesses Who Received PPP Loans – Businesses in CA that received PPP loans won’t be facing a state tax headache after all, thanks to action this week by the State Senate to allow many small businesses with at least a 25 percent revenue loss to fully deduct forgivable PP loan expenses and avoid a huge state tax bill.

Loser:  Investors – Investors – and the jobs and innovation they support thanks to their buying stocks and infusing capital into startups – are poised to be the big losers of the next Biden tax increase plan.  According to the New York Post, combined state and federal capital gains tax rates for Californians could climb as high as 56.7 percent.  The stock market dropped 300 points Thursday when the first press reports of Biden’s plan hit Wall Street. 

Evan Harris – Media Relations and Outreach Manager 

Winner: April Showers – Sunday looks like it will bring a rare late-April storm to California, with the state poised to enter the end of spring and begging of summer in a drought. The only time California had zero precipitation in April was 1898.

Loser: Single-Payer Health Care in California – On Wednesday, the California State Legislature pulled back a proposal for a state single payer health care proposal. The bill author said that the bill “will be brought forward later and expects it to get approved.” 

Rowena Itchon – Senior Vice President 

Winner: “43” – Former president George W. Bush just released a new book of his paintings titled “Out of Many, One: Portraits of America’s Immigrants”.  The book is a collection of stories and paintings highlighting the inspiring journeys of America’s immigrants.  As an immigrant, I will be buying a copy.

Loser: Ralph’s workers and Jewish and low-income communities – Kroger decided to close the Ralph’s (Pico Boulevard and Beverwil Drive) serving a largely Jewish community after the LA City Council required grocery stores to pay workers $5 more per hour for four months. The grocery store, which specialized in carrying kosher foods, could no longer operate profitably.  Another Ralph’s that serves a low-income community in South LA is also closing.   

Kerry Jackson – Fellow, Center for California Reform 

Winner: Out-of-staters – For those who have been fully vaccinated, California theme parks now welcome guests visiting from elsewhere.

Loser: Prospective Southern California Homebuyers – The median price was up 14.5% last month over March 2020, reaching a record $630,000. It was the eighth straight month of double-digit increases.

McKenzie Richards – Development Associate

Winners: The Privacy of Californians Who Sign Recall Petitions – State Senator Josh Newman (D – Fullerton) introduced Senate Bill 663 which would publish the names and addresses of voters who sign recall petitions. After mounting public backlash, the bill was removed from consideration this week. Newman, who was recalled from office in his first term before being re-elected in 2020, says he plans to reintroduce the bill after Governor Newsom’s ongoing recall efforts end.

Loser: First-time California Homebuyers –First-time homebuyers are being outbid by big developers more now than ever before. As the cost of homes continually rise throughout the state, some first-time buyers simply cannot afford to put 20% or more down to compete with what big developers are able to offer sellers. The answer: the state must reform CEQA and other laws that are preventing new houses from being built, which would result in lower housing cost for all.

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Nothing contained in this blog is to be construed as necessarily reflecting the views of the Pacific Research Institute or as an attempt to thwart or aid the passage of any legislation.