Assemblywoman Dahle proposes a tax credit for small businesses that hire and train first-time employees ages 18-25.
SACRAMENTO – California now boasts the highest corporate taxes, income taxes, sales taxes, and fuel taxes in the country. With its soaring tax rates and significant regulatory burdens on business, our state is no easy place for small businesses to thrive.
At the same time, young adults are facing a tough labor market, and one in three reports that they cannot secure a job. The unemployment rate among this population is more than double what it was in 2000, yet recent projections indicate that by 2025, we will have over 1.5 million jobs that will go unfilled because our workforce lacks the skills necessary to meet the economic demand.
How can we start to tackle this problem?
Passing AB 2041 would be a start. Assemblywoman Megan Dahle (R-Bieber) introduced legislation that helps both small businesses and labor market newcomers alike by creating a personal and corporate income tax credit for microbusinesses (10 or fewer employees) who hire first-time employees between 18-25 years of age.
“Small businesses are uniquely poised to offer a solution to the high unemployment rates facing labor market newcomers and the need to train up a skilled workforce to meet market demands.” Said Dahle. “As a small business owner who has hired and trained young people in their first job, I have seen first-hand how mutually beneficial these relationships can be. With the cost of running a business continuing to rise in California, we need to preserve employment opportunities for young workers to get the training and experience they need to be successful. AB 2041 does just that.”
Could the solution to California’s skilled workforce shortages and dwindling employment opportunities for young adults be on the horizon? The Assembly Revenue and Taxation Committee will consider AB 2041 this spring.
Assemblywoman Megan Dahle represents the 1st Assembly District in the California Legislature, which includes portions of Butte and Placer counties, along with Lassen, Modoc, Nevada, Plumas, Shasta, Sierra, and Siskiyou counties.