![]() As part of our work assessing the impact of public policies on the labor market, we reviewed the impact analysis performed for the council by Blue Sky (included in the October 2021 Task Force report) and subsequent estimates that the current proposal will cause the loss of between 1,600 and 3,400 jobs. Furthermore, the tools used to create estimates of the job impacts of tax changes are much less reliable than they are often presented to be. In truth, there is limited research evidence in support of the assertion that local taxes play a significant role in business location decisions. ![]() When policymakers propose to increase taxes, they are commonly met with claims that such changes will discourage businesses from locating or expanding and may even cause businesses to move jobs to other jurisdictions. The current proposal being put forward by Council Members Bas and Fife would raise an estimated additional $40 million for the city’s general purpose fund, and would go before voters in November 2022. The City Council is considering a proposal to restructure the city’s gross receipts tax to create tiers based on the amount of gross receipts, as well as a new administrative headquarters payroll-based tax. Like many cities, Oakland is examining how its business tax structure aligns with the city’s goals and needs. We also discuss the importance of strengthening the city’s revenue base to support Oakland’s continued recovery from the impacts of the COVID-19 pandemic and the importance of improving public services to support business growth and retention.Īs local economies continue to recover from the pandemic downturn, policymakers are focused on how best to use public policy tools to support resilient and equitable economies. In this post we evaluate the possible economic impacts of a proposed restructuring of Oakland’s Gross Receipts Tax, including an evaluation of job impact estimates made by the task force consultant-Blue Sky Consulting Group-and research on what factors affect business location and expansion.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |