Thursday, October 14, 2004

K foes to mayor: "Take a hike"

"Small Business Community Tells Mayor Newsom "No Deal" On Proposition K
Appreciates Mayor's acknowledgement that measure is fundamentally unfair to small business. Announces willingness to work with the Mayor after the election.

San Francisco- San Francisco's small business community today announced it has rejected the Mayor's last minute proposal to try to push through a legislative solution to resolve the fundamental unfairness of Proposition K before the November 2nd vote.

Scott Hauge, a business owner and leader of the coalition opposed to Proposition K, said, "This proposal comes way too late for us to accept it." He added, "We went to the Mayor before this tax was put on the ballot, and he refused to discuss it with us. Now, at the last minute and facing the prospect that this measure might fail, he is trying to change his proposal."

Hauge also talked about the strong support the coalition against Proposition K has among small business owners, saying "I sent an email to 600 small business owners detailing the Mayor's last minute proposal, and the response was better than 4 to 1 against accepting it."

Other leaders of the coalition also raised objections to the Mayor's last minute attempt at a deal. Stephen Cornell owner of Brownies' Hardware said, "It is in the best interest of San Francisco's small business community to defeat Proposition K. After the election we will sit down with the Mayor and come up with a solution to the City's budget problems. This is something we were willing to do before this Proposition was put before the voters, and it is something we are willing to do after the election."

Assembly Speaker Pro Tempore Leland Yee said "I support small business and I understand the fundamental unfairness of this tax measure. I am encouraged by the willingness of small business to pay their fair share and will be willing to bring business and labor together to find the means for the City to meet its budget crisis."

Proposition K is a ballot measure in San Francisco that will create a new business tax. This tax is a .1% tax on gross receipts, which is all money a business takes in regardless of expenses or if the business is losing money. It also changes San Francisco's payroll tax to include pass-through entities such as partnerships. It was placed on the ballot by the Mayor and the Board of Supervisors.

Mayor Gavin Newsom recently proposed a self-styled legislative "Hail Mary" to change the effect of Proposition K. Under Mayor Newsom's proposal, the threshold for application of the gross receipts tax would be raised from $500,000 to $2 million. This last minute solution would have its final reading at the Board of Supervisors on Election Day - but only if no member of the Board of Supervisors requests that it have a committee hearing."

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