California Business Leaders Launch Ad Campaign Warning of

A coalition representing some of California's largest companies has launched an advertising campaign warning voters about a potential "tax bomb" of new state and local taxes that could appear on the November ballot. The group, Californians Against Wasteful Spending and Higher Taxes, released a 60-second ad on social media this week that uses a simulated bomb squad raid to illustrate the impact of these proposed tax hikes.

The advertisement opens with scenes of people evacuating a building as bomb squad officers approach what is depicted as an explosive device. The ad asserts that "every Californian is going to pay more" and that "the entire state could get destroyed" by these new taxes, referencing the roughly 2 million people who have left California in recent years.

The coalition, a project of the California Business Roundtable, which represents executives from major employers in the state, aims to raise voter awareness before Election Day. Rob Lapsley, president of the California Business Roundtable, stated that the goal is to ensure voters "understand what’s coming" and to combat the perception that California is already burdened by high taxes. "We are the highest tax state in the country and all we are doing is continuing to pass taxes," Lapsley said.

The ad criticizes politicians for demanding more taxpayer money for programs, even if they are ineffective, and concludes with the message "No to higher taxes." Lapsley emphasized the contradiction between political discussions about affordability and the continuous introduction of new taxes, arguing that this practice makes California increasingly unaffordable. He also raised concerns about businesses' ability to continue creating jobs and retaining workers in the state.

According to the coalition's website, Sacramento has already spent significant funds, including a $100 billion surplus in the last five years, on what it describes as a "reckless spending spree" with billions lost to waste and fraud. The group claims state spending has increased by 79% since 2019. They argue that new taxes will exacerbate problems by driving away jobs and revenue, disproportionately affecting individuals and businesses.

Another business-backed organization, the Coalition for California, has also criticized state spending. This group points to specific instances of financial expenditure and alleged mismanagement, including $31 billion lost to unemployment insurance fraud, the High-Speed Rail project exceeding its budget by billions, and $37 billion spent on homelessness without measurable improvement. The coalition asserts that despite these expenditures, California continues to face challenges with homelessness, infrastructure, and education.

The California Business Roundtable represents CEOs and executives from companies employing over 500,000 people. Lapsley hopes the ad will underscore the importance of jobs and affordability for employees in California.