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Advantage Payroll Services president Rob Basso on clawing back taxes from small business investors in California.
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-- in today's extended West Coast minute outraged and California small business investors under attack.
As the Golden State -- them for back taxes after a California court the runs out legal tax breaks they talk.
Over the last four years.
Joining us now small business owner Abbott kept rob bass -- -- advantage payroll services are right 1990 please state law this is what they were legally doing here.
You get a tax break if you invest in the company that I gross assets less than fifty million dollars in your cap gains was cut cap it was a bonus.
Getting people to invest in California companies now they're saying.
Forget this is and we what does this is a small business.
If it's it's deplorable what what -- saying is don't invest in small business in the state of California.
They're clawing back four years a 120 million dollars in tax incentives and their inspect expecting these small business investors that put their money in life on the line to grow these businesses to then take the money back it is -- deplore.
What about what's happening with these taxpayers about 2000 residents in California -- an attempt Lucent the government here should not punish innocent law abiding tax payers.
Retro actively just because.
They had the power to do so.
He -- a good example I've got a special incentives in New York State for my small business if they go back five years I can -- half a million dollars to the State of New York.
I've done everything I'm supposed to do.
Within the guidelines of these rules like follow below the losses -- -- -- existed then these people followed the law as it existed now to getting penalized for being good American tax.
And there are certainly going to be -- that legal fights to come from those residents but they're getting sticker -- they were handed his notices.
At the end -- December for the franchise tax board in California and said you're gonna have to pay up.
Any chance do you think that this goes back.
To the court well -- the small business investor and -- It's possible in 2000 there was a lawsuit brought the US Supreme Court.
Actually ruled wanted one of the on tax laws that we're actually passed in the -- California as unconstitutional.
And basically said OK you can't write off interest expense that's out of state income.
Now they went back and they said okay well we're just gonna change the war.
California could go back the FTB could actually go back and actually make this change and make sure that these people don't have to pay the tax is absolutely possible for them to do.
And we should we should say -- the feeling is making go back for years that the -- you can only go back on at somebody for four year all of they could if -- if they could go back for the they absolutely would but they can't and that's luckily they've got along the side of the -- Supreme Court could step in.
All of that's -- need for we should say that the California -- it is unconstitutional for the state legislature in California.
To agree to let these breaks happen -- if you're gonna give it to small businesses in California does investors.
You've got to give its all US investors print markets have been.
They they could do that but you know want it it basically ruins the entire fact of what the law -- they were trying to make sure -- investment was saying in staying in the state of California.
Look at what what governor Rick Perry's doing running huge ads for the state of Texas to get people to invest in Texas and not saying California.
Through huge appetite for the Melissa sellers that's -- because so fascinating about -- -- small business owners an estate that's want think these are residents of California who took legal tax breaks up to support local businesses epic fall below other accounts while the law.
Another gonna have to go back to their accounts and -- guess what four years we're now being hit.
It's so wrong for small business owners and for investors in America it's -- -- be big problems I hope that they change it and they make sure that people -- -- equally it's it's just deplorable rob we have reached out to some of the players all this other industries gonna continue rob that's that they can -- -- coming -- coming appreciate.
The.
