Monday, March 22, 2010

Mayor signs my proposal to reduce taxes on Internet-based businesses

This morning, I joined Mayor Villaraigosa at where he signed my proposal to reduce taxes on Internet-based businesses to help attract new and keep existing entrepreneurs in the city. Internet-based businesses can easily pick up and move anywhere in the country. We want to keep these jobs here for Angelenos and this business tax reform will help us do that.

The ordinance created a new tax category for Internet-based businesses, which had previously been included in the "Business and Professions" classification, which is taxed at a higher rate. Businesses that use the Internet as the primary means to provide services (such as a search engine) may apply under the new category.

In addition to direct jobs that this new tax category will help to create, Internet-based jobs have also demonstrated a multiplier effect. According to the Los Angeles Economic Development Corporation, one new job in Internet publishing, broadcasting and web search portals creates 2.8 additional jobs.