Saturday, October 30, 2010

McCarthy: Business friendly laws and taxes push Texas ahead of California in luring industry

  Rep. Kevin McCarthy (R-Bakersfield) provides us with his weekly update from Capitol Hill. In his words:

 "It was great to be in Taft last weekend and help Bob Leikam, the owner of Taft’s Domino’s Pizza, break the Guinness Book of World Records for the most medium pepperoni pizzas sold in 24 hours – final tally:
6,838.  I also spent time out in Atascadero this week and was able to attend the groundbreaking ceremony for the restoration of City Hall. As you remember, it was damaged during the 2003 San Simeon earthquake,
but now it will reclaim its place as an historic icon on the Central Coast and reopen in time for Atascadero’s bicentennial.

  "Last week, we discussed the new $12 fee on vehicle registrations in the Central Valley that will be leveled on hard working families as a result of the Clean Air Act, which is enforced by the EPA.  This $29
million fine is being imposed even though the Valley has made significant improvement in cleaning up its air quality over the past few years.  My office has contacted the EPA and is examining the penalty.  While I certainly support breathing clean air and continuing to improve air quality, I believe there are unique factors beyond our control such as the pollution that blows in from the north, the Valley’s geography which prevents air circulation, and the traffic that utilizes the 99 and the 5, California’s two strategic north-south
transportation corridors.  What is needed is an assessment of the fairness of this penalty and whether it will make our air significantly cleaner so we meet compliance or whether it’s an outdated fine that will be charged to us annually regardless of any legitimate changes we make to clean the air.

  "Reading an editorial in the Wall Street Journal this week, I was struck by the claim that Texas is the new California.  Part of the evidence that was listed is that Texas’ major cities have now become
attractive places for investment and entrepreneurship and have brought in industries like aeronautics, venture capital, high tech, and even industrial manufacturing.  Further evidence of this was when Texas
added 153,000 jobs while California lost 43,700 last year.  Reasons behind this trend are an out-of-control state budget and an unfriendly tax environment, coupled with the facts that Texas is a right to work
state and there is no income tax translating into a 10% “cost advantage” over our state.  Personally, I do not want California to lose its economic edge and competitiveness.  Let’s work together to restore California to its place of economic leadership and entrepreneurship.

  Quick reminder – my office will host an Academy Forum next Saturday, November 6th for those students interested in attending one of our nation’s U.S. Service Academies.  RSVP by emailing: or call my office: 327-3611.  The forum will be from 10 to 11am at the Kern County Board of Supervisors’ Chambers.

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