The State Worker

Chronicling civil-service life for California state workers

June 17, 2009
Union: Study shows tax hike won't push out businesses

The American Federation of State, County and Municipal Employees is touting the findings of a new study as proof that California can raise taxes to balance its budget.

AFSCME notes that the study by Public Policy Institute of California indicates that the state's enterprise zone program, which gives tax incentives to businesses to spur job creation in certain economically distressed areas, "has no effect on job or business creation."

An AFSCME e-mail with a link to the study makes this connection:

These findings effectively repudiate the arguments of those who say that California cannot raise taxes to balance its budget, because doing so will cause valuable businesses and jobs to flee the Golden State.

Is this a reasonable conclusion or a politically motivated intellectual leap? You decide. Click here to read the 32-page PPIC report. If that's too time-consuming, click this link for a two-page summary.

AFSCME is hoping to get media outlets to publish an opinion piece about the study, which you can read by clicking here. And this link will take you to the AFSCME e-mail sent to media that introduces the opinion article.

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About The State Worker

Jon Ortiz The Author

Jon Ortiz launched The State Worker blog and a companion column in 2008 to cover state government from the perspective of California government employees. Every day he filters the news through a single question: "What does this mean for state workers?" Join Ortiz for updates and debate on state pay, benefits, pensions, contracts and jobs. Contact him at (916) 321-1043 and at


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