For the legislative and political week July 12-16
Welcome to the July 12 edition of the NFIB California Main Street Minute from your NFIB small-business advocacy team in Sacramento.
- Today, July 12, the Senate Labor, Public Employment & Retirement Committee will take up Assembly Bill 1033, NFIB-supported legislation preserving the Small Employer Family Leave Mediation Program within the California Family Rights Act. The bill passed the Assembly 78-0 with NFIB’s chief legislative advocate, Kevin Pedrotti, providing key testimony.
- The big word out of Sacramento last week was no word. Gov. Gavin Newsom has yet to sign the budget trailer bill that includes Assembly Bill 150, NFIB priority legislation that, most importantly, contains the pass-through entity elective tax – a work-around the State and Local Tax (SALT) caps.
- Were you affected by the $10,000 limit placed on the amount of state and local taxes you could deduct from your federal taxes? That limit was put on by the 2017 Tax Cuts and Jobs Act, which also contained the Small Business Deduction, so maybe you weren’t. AB 150 would help restore the balance for those small businesses filing as S corporations, LLC’s and partnerships.
- More information about S corporations can be found on the S Corporation Association website, but, WARNING, it did jump the gun in its July 2 story, when it wrote, “good news for the State’s 600,000 S corporations who, along with California partnerships and LLCs, can now deduct the full amount of their state and local tax (SALT) payments on their federal taxes.” No, they can’t. Not until Governor Newsom signs the budget trailer bill.
- Another resource on the SALT parity issue is the Main St. Employers website, which has a whole page dedicated to the topic.
- The governor is expected to sign the budget trailer bill and when he does, NFIB will issue a press release thanking him for doing so.
- This Wednesday, July 14, is a big day in the State Capitol. It’s the last day for policy committees to pass bills on to the next committee. Two days later the Legislature begins its July 16-to-August 16 summer recess.
- After Wednesday, NFIB will publish on its California page a list of this year’s bills it has helped pass and defeat and report on the status of remaining measures it’s fighting for or against.
- If you haven’t done so, please take a few minutes to listen to NFIB California podcasts with high-level policy leaders. Listen here.
Nationally
- Today, July 12, NFIB releases the results of its latest COVID-19 poll of the membership, the 18th it has taken to date. In addition to responses to questions on loans, there will be results on supply-chain disruptions, labor shortage, and the vaccine.
- Tomorrow, July 13, NFIB releases its monthly Small Business Economic Trends report, also known as the Optimism Index.
- Wednesday, July 14, next webinar, SBA Paycheck Protection Program (PPP) Forgiveness, with special guest Shelley Brown, SBA lender relations specialist. Register here.
Next Main Street Minute July 19.
