Business community attacks tax proposals

Pub date January 30, 2009
SectionPolitics Blog

By Steven T. Jones

San Francisco’s business community has launched a coordinated campaign against calling a special election in June for new revenue measures, which the Board of Supervisors will consider at Tuesday’s meeting.

The board voted 8-3 this week to declare a fiscal emergency and consider various tax measures to help offset $118 million in midyear budget cuts made by Mayor Gavin Newsom and to close a deficit for the next fiscal year projected to be more than $550 million. All eight supervisors will be needed to call the election.

But the San Francisco Chamber of Commerce and Scott Hauge (who didn’t return my calls for comment) of Small Business California have both blasted out calls to oppose the move, using the same talking points and nearly identical language that complains, “City Hall is rushing to hold a June 2009 Special Election so it can put proposals for hundreds of millions of dollars in new taxes before San Francisco voters.”

In reality, current proposals call for less than $100 million in new taxes. Business leaders and Mayor Gavin Newsom (who also opposing the June election) have known since at least Halloween about the size of this deficit (which is roughly half of the city’s discretionary spending) and could have worked with progressives on the procedural issues they’re citing. So this has nothing to do with “a rush,” but is one more example of fiscal conservatives offering knee-jerk opposition to any new taxes.

Still, the business community will be putting intense pressure on the board, particularly the swing votes: Supervisors Bevan Dufty and Sophie Maxwell. So if you think the people should have a say in sparing some of the deepest cuts to city services by making rich people, drivers, or profitable businesses pay a little more in taxes, now’s the time to make your voice heard.