Tordillos looks ready to join Mahan's tax-and-spend bloc
SJ D3 CM-elect, Anthony Tordillos (l) and NYC mayoral hopeful Zohran Mamdani (DSA) (r). Left photo by AnthonyForSanJose, right photo by Dmitry Shein, CC BY-SA 4.0, via Wikimedia Commons.
Councilmembers Mulcahy & Casey, along with Mayor Matt Mahan, have disappointed the local business community by coming out in favor of making it easier to tax already tax-burdened San Joseans. D3 CM-elect Anthony Tordillos appears to be a likely addition to the tax-happy team, at least from his campaign statements (via SJ Spotlight). Also: a primer about regressive taxes for the council newcomer from onemoneyway.com.
Tordillos on business taxes:
Examine San Jose’s rather regressive business tax, which unfairly punishes small businesses and lets big corporations pay significantly less than they do in cities like San Francisco. Doing so will help our small businesses thrive and ensure big corporations finally pay their fair share.--Candidate Tordillos, San Jose Spotlight
Read the whole thing here.
The Benefits of regressive taxes for businesses, onemoneyway.com:
Simpler Administration
One of the main benefits of regressive taxes, such as VAT and excise duties, is their simplicity in administration. Because these taxes are applied at the point of sale, businesses can easily calculate them using straightforward accounting practices. Unlike income or corporate taxes, which require detailed financial statements and complex deductions, regressive taxes are transactional. This means that businesses can reduce the costs associated with tax compliance, such as hiring specialised tax consultants or setting up complex tax-reporting systems.
For SMEs, the ease of collecting and remitting VAT reduces the administrative burden, freeing up resources for other operational needs. Furthermore, in countries with stable VAT systems, businesses enjoy predictable tax structures, which help them plan more effectively for future costs.
Stable Revenue Generation
Regressive taxes provide governments with a steady and reliable source of revenue, which is critical for maintaining public infrastructure, social programs, and economic stability. This, in turn, benefits businesses indirectly. Stable government revenues enable consistent investment in public services, such as transportation, utilities, and infrastructure, which are essential for business operations.
For instance, European companies benefit from the robust infrastructure financed by regressive taxes, such as well-maintained roads, bridges, and ports facilitating trade and logistics. This stability helps create a business environment that supports growth and expansion.
Lower Political Resistance
Unlike progressive income taxes or corporate tax hikes, regressive taxes typically face less political opposition. Because they affect the entire population and are less noticeable on an individual basis, governments are more likely to implement them without facing significant backlash. For businesses, this means fewer abrupt changes in tax policy, which allows for long-term financial planning.
For instance, large corporations often face lobbying or public pressure when income tax increases are proposed. However, regressive taxes like VAT usually generate fewer headlines, giving businesses a more predictable tax environment. Companies can operate without the concern of sudden tax spikes that could impact profitability.--onemoneway.com
Read the whole thing here.
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