Garcetti Hails Elimination of Business Tax to Create Jobs

LOS ANGELES — The Business Tax Advisory Committee, which was reconvened through action by Council President Eric Garcetti, today unanimously recommended eliminating the city’s business tax over a four-year period. The Committee voted last month to formally recommend eliminating the tax.

The recommendation comes on the heels of a report by USC Professor Charles Swenson, CPA, Ph.D.  Swenson was charged with independently analyzing the effects of potential reforms to the Los Angeles business tax system, including reducing or eliminating the tax. The report concludes that future reforms could drive significant job and economic growth.

Garcetti is a leading advocate for reforming Los Angeles’ business tax system to create jobs. After leading the enactment of several major reforms –including an across-the-board business tax reduction, elimination of the tax on Los Angeles’ small businesses (approximately 60 percent of businesses), and incentives targeted to keeping and attracting highly-mobile businesses –  Garcetti prompted City Council action to reconvene the Business Tax Advisory Committee to make recommendations on further reforms.

“It’s unacceptable for the city budget to be so reliant on a tax that restrains job growth and drives companies out of Los Angeles,” Garcetti said. “My focus is on turning our economy around and moving Los Angeles forward despite the national crisis. I commend the Committee for devoting such an incredible level of work and expertise to improving the our economy.”

Lloyd Greif, Chairman of BTAC and CEO of Greif & Co., a Los Angeles based investment bank, said:  “After 75 years, it’s time for the City’s gross receipts tax to go the way of the buggy whip.  It is the most visible embodiment of LA’s reputation for being business unfriendly.  With the prudent, four-year phase out of the business tax that BTAC has recommended, companies throughout the region and nationwide will know that LA is serious about being open for business. Eliminating the business tax will bring new employers to Los Angeles, 131,000 new jobs and all of the indirect revenues from property and sales taxes plus permit and licensing fees that stem from heightened levels of economic activity.”

Los Angeles’ business tax is among the highest of its kind. It is a “gross receipts” tax, meaning that taxes are calculated not according to profits, but according to the amount of money that passes through a business. That means businesses that make little money — or even lose money — are still taxed, dissuading new businesses from locating in LA and driving businesses to move to other cities.

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Los Angeles City Council President Eric Garcetti issued the following statement regarding the unanimous passage of resolutions that put the City of Los Angeles officially on record in support of Assembly Joint Resolution 6, which supports H.R. 210 – “Filipino Veterans Fairness Act of 2011 Joint Resolution” and Assembly Bill 199, which would encourage teachers in the Los Angeles Unified School District (LAUSD) to include the history of Filipino veterans in World War II as part of social science lesson plans.

“We must make sure our courageous Filipino Veterans and their families get the benefits they have earned. And we must teach the next generations about this important part of our American history so that their story is never forgotten. It’s time to do the right thing and pass these resolutions,” said Los Angeles City Council President Eric Garcetti.

Copies of the city’s resolutions are available here:
http://cityclerk.lacity.org/lacityclerkconnect/index.cfm?fa=ccfi.viewrecord&cfnumber=11-0002-S107
http://cityclerk.lacity.org/lacityclerkconnect/index.cfm?fa=ccfi.viewrecord&cfnumber=11-0002-S108

Garcetti Hails Report that Backs His Push for More Reforms to Create Jobs

LOS ANGELES — The Business Tax Advisory Committee, which was reconvened through action from Council President Eric Garcetti, today received and released a final report from USC Professor Charles Swenson, CPA, Ph.D., who was charged with independently analyzing the effects of potential reforms of the Los Angeles’ business tax system, including eliminating the tax. The report concludes that future reforms could drive significant economic growth.

Garcetti is a leading advocate for reforming Los Angeles’ business tax system to create jobs. After leading the enactment of several major reforms, Garcetti prompted City Council action to reconvene the Business Tax Advisory Committee to make recommendations on further reforms. Those proposals are forthcoming, and the committee will use the report issued today in developing them.

“This report validates the reforms we have achieved, and the future reforms we are calling for,” Garcetti said. “The economics may be complex, but the fundamentals are simple: Los Angeles needs jobs, and business tax reform will create jobs. I look forward to driving new job and business growth by working with the Business Tax Advisory Committee on our next round of reforms. I want to thank the committee and Dr. Swenson for the invaluable work they have provided to the people of Los Angeles.”

“The City has charged us with the responsibility to recommend business tax reforms that will create jobs, spark new business growth, and build a stronger Los Angeles for all, employers and employees alike. This report is a huge step in the right direction, and it lays a solid analytical, fact-based foundation upon which we can craft a strong set of proposals to significantly boost Los Angeles’ economy. In these tough economic times, we must focus on job creation, and it’s clear that meaningful business tax reform can deliver the growth we need,” said Lloyd Greif, Chairman of the Business Tax Advisory Committee and CEO of Los Angeles investment bank Greif & Co.

Los Angeles City Council President Eric Garcetti today announced that he has selected Ms. Yolanda Brown as the Council District 13 Pioneer Woman of 2011. Ms. Brown is the Parish Life Director for the Blessed Sacrament Church in Hollywood.

“Yolanda is a shining example of the pioneering spirit,” said Garcetti. “She truly is a leader and guiding force in Hollywood.”

Earlier this month, Archbishop José H. Gomez appointed Brown to serve as the Parish Life Director for the Blessed Sacrament Church. In that position, she is now entrusted with the leadership of the entire parish, in both administrative and pastoral capacities. Prior to her work with Blessed Sacrament, Brown served for seven years as a Pastoral Associate for the Dolores Mission Church in Boyle Heights. She also had a career in banking and finance before being compelled to seek a higher calling.

Brown holds a MA in Theology from Loyola Marymount University and an MBA in Finance from Pace University. She is currently working toward a PhD in Ministry from Catholic University.

The City of Los Angeles established the Pioneer Woman awards in 1988 to recognize extraordinary women.

Garcetti to provide funding for inaugural year of office he created

LOS ANGELES — The City Council today unanimously approved a panel of 13 research firms and organizations that will provide the City with rigorous, independent research to guide job creation and economic development initiatives through the new Office of Economic Analysis, which was proposed by Los Angeles City Council President Eric Garcetti and that will be funded by his office during its inaugural year. After a successful first year, Garcetti will seek to permanently establish the office.

“The Office of Economic Analysis will provide rigorous, independent research to help us maximize job and economic growth,” Garcetti said. “Job creation is as complex as it is vital during these tough times. The Office of Economic Analysis will ensure the City’s economic
policies are efficient and effective.”

Garcetti also praised the Los Angeles Chamber of Commerce for championing the Office of Economic Analysis.

“We look forward to having this additional tool to assess the impact that pending legislation would have on the creation of jobs in the City of Los Angeles. This information should be very valuable and helpful,” said Gary Toebben, President and CEO of the Los Angeles Area
Chamber of Commerce.

After a Request for Qualifications (RFQ) process, the following 13 firms were approved to provide research services through the Office of Economic Analysis:

AECOM
Aspen Environmental Group
BAE Urban Economics
Blue Sky Consulting Group
EPS, Inc.
HDR Engineering, Inc.
HR&A Advisors, Inc.
ICF International
Kosmont Companies
Parsons Brinkerhoff
The Rose Institute
Tecolote Research, Inc.
Urban Community Economics

Council kicks-off LGBT Heritage month

The Los Angeles City Council kicked-off Lesbian, Gay, Bisexual, and Transgender (LGBT) Heritage Month by passing a package of resolutions that put the city officially on record in support of pending LGBT community-related federal and state bills.

“By standing up for LGBT rights, we stand up for the basic rights to which every American is entitled. Today we reaffirm the City of Los Angeles’ commitment to laws that recognize and protect all of our diverse communities,” said Council President Eric Garcetti.

“With LGBT Heritage Month we celebrate the remarkable accomplishments of the LGBT community and its heroic activists. We also commemorate this month by focusing on what we as a city, including our Mayor and City Council, can do to champion such grand and courageous efforts. That’s why I’m so proud that we are beginning this special month by voting to support the causes and protect and advance the rights of the LGBT community, through our outspoken, strong and caring endorsement of crucial state and federal legislation that helps achieve justice, equality, safety, opportunity and progress,” said Councilmember Paul Koretz.

“As the rest of the country struggles to define equality, the City of Los Angeles found that the easiest way is to continue at the very heart of the word. The actions of the Mayor and my Council colleagues today will recommit us to our tradition of acceptance in the City of Los Angeles, and set an example for others, while the LGBT community continues to fight for very basic civil and human rights. When it comes to inclusion there are critical battles ahead of us, but today I feel like we truly belong,” said Councilmember Bill Rosendahl.

“We must continue to protect the rights of all Los Angelenos. The federal and state bills that we supported today reinforce this goal, sending the message that the City of Los Angeles is and will continue to be a place that supports equal rights for everyone regardless of ethnic background, religion, or sexual orientation. It’s simply the right thing to do,” said Council President Pro Tempore Jan Perry.

“It’s important for the City of Los Angeles to go on record in support of equality for the LGBT community, and hopefully our actions will encourage other cities to do the same,” said Councilwoman Janice Hahn.

The city resolutions support the following state and federal bills:

• Senate Joint Resolution No. 2: Urges the President, Congress, and Secretary of Defense policy requiring service members discharged under Don’t Ask, Don’t Tell to repay the costs of their military education and training
• Federal legislative action to grant Joseph Sekajugo Bokombe, a gay man from Uganda, a visa extension and possible permanent residency so that he not be sent back to Uganda where he faces the threat of violence because of his sexual orientation
• AB 887: Amends state law to specifically enumerate protections based on gender identification and gender expression protections
• SB 117: Prohibits state agencies from entering into a contract of $100,000 or more with businesses that discriminate based on sexual orientation in providing employee benefits
• SB 747: Requires state regulatory boards that license or certify health care personnel to mandate a continuing education course in LGBT cultural competency in heath care
• AB 9: Requires California schools to report to law enforcement instances of the bullying of students
• AB 620: Requires California Community Colleges, California State University and the University of California to train faculty and staff on LGBT issues, provide services to address LGBT student needs, and add sexual orientation, gender identity, and gender expression to campus anti-discrimination policies
• SB 416: Adds questions regarding sexual orientation, gender identity, gender expression, domestic partnership status, and gender of a spouse to voluntary demographic information collected in California statewide surveys
• SB 182: Adds gender identity and sexual orientation questions to the state’s annual Judicial Applicant Data Report for judicial applicants, judicial appointees and nominees, and justices and judges
• SB 48 (FAIR Act): Adds the LGBT community to the list of under-represented groups for inclusion in textbooks and other school instructional materials