

Ask HN: What do you think of prop 24? - wtracy

According to Ballotpedia, California Proposition 16 would eliminate the following three tax breaks:<p><pre><code>    * The "single-sales factor". This allows multi-state corporations to choose whether they will be taxed on property, payroll or sales.
    * Loss carry-backs. This allows corporations that are experiencing losses in California's current economy to get refunds for taxes paid up to two years previously.
    * Tax credit-sharing. This allows companies with more tax credits than they can use to distribute the tax credits to affiliates.
</code></pre>
How do you think this will affect start-ups?
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anigbrowl
I think you mean Prop 24:
[http://ballotpedia.org/wiki/index.php/California_Proposition...](http://ballotpedia.org/wiki/index.php/California_Proposition_24,_Repeal_of_Corporate_Tax_Breaks_\(2010\))

and [http://www.voterguide.sos.ca.gov/pdf/english/24-title-
summ-a...](http://www.voterguide.sos.ca.gov/pdf/english/24-title-summ-
analysis.pdf)

I'm not a US citizen, so I can't vote. But I might note that this proposition
does not so much eliminate tax breaks as prevent their introduction. The three
rule changes are all new tax policies which come into effect from FY2011
onwards.

In other words, the proposition aims to keep things as they are now. Draw your
own conclusions. I doubt these would have any significant effect on a startup
in its first few years of operation, it seems more likely to impact larger
established firms.

~~~
wtracy
Thanks, I fixed the title--I don't know where the heck I got 16 from.

