Hettie Lynne Hurtes |

Business Tax Holiday for Los Angeles?

L.A. city officials today proposed a "business tax holiday" for new firms that open in Los Angeles. Under the proposal, which still has to be approved by the City Council, new businesses would be exempt from paying gross receipts taxes to the city for three years if they open or locate in Los Angeles.

USC professor Charles Swenson researched the benefits of a business tax holiday and said "the new policy will lead to the creation of up to 55,000 jobs and generate additional revenue for the city of Los Angeles." Councilman Richard Alarcon, who chairs the City Council's Jobs and Business Development Committee, was also supportive of the proposal.

Said Gov. Schwarzenegger: "For our economy to recover, we need the private sector to add jobs, and the proposed business tax holiday and recent expansion of the East Los Angeles Enterprise Zone are two surefire ways to do exactly that."