February 9, 2009

Chambers of Commerce Coalition of Santa Clara County opposes
proposed bag tax

A group representing more than a dozen chambers of commerce throughout Santa Clara County recently announced its formal opposition to a proposed countywide tax on shopping bags, a measure that would harm consumers and businesses.

”We come out in support or opposition of issues that affect the Businesses in Santa Clara County, “said Campbell Chamber of Commerce Executive Editor Betty Deal.  “In this case, we believe that the bag tax would be a detrimental to business and would not help the environment. It’s just wasted spending.”

Besides Campbell, the Gilroy, Hispanic, Los Altos, Milpitas, Sunnyvale, Morgan Hill, and Santa Clara Chambers of Commerce all voted to oppose the bag tax.

The proposal, put forth by an advisory panel—the Santa Clara County Recycling and Waste Reduction Commission—would impose a 25-cent tax on nearly every paper and plastic bag used in commerce conducted in Santa Clara County. The county has asked for input from the region’s cities and interested stakeholders.

“In this economy, now is not the time to seriously be considering more ways to take money out of the pockets of consumers and harm businesses that are struggling to survive,” said Coalition Chair Steve Van Dorn, President and CEO of the Santa Clara Chamber of Commerce and Convention-Visitors Bureau.

Outlining the Coalition’s opposition, Van Dorn cites the following reasons and concerns: The bag tax ignores the current crisis in our economy: It is unfortunate that a government entity is seriously considering a new tax to create a new program at a time when both business and government are in the midst of the biggest economic crisis since the Great Depression. Any tax of this sort is a prime example of a government that is out of touch.

The bag tax is anti-business: In addition to the adverse impact this tax could have on the area’s consumers, it also interferes with commerce. The burden of monitoring, managing and complying with a tax means yet one more regulation that stifles business. Furthermore, it puts businesses at risk of alienating their customers by imposing an unpopular tax at the cash register.

The bag tax is anti-consumer: Santa Clara County residents are already challenged by the extremely high cost of living in the region. While Silicon Valley is made up of many wealthy entrepreneurs and highly paid tech-industry employees, a large segment of our population is comprised of seniors on fixed incomes, working middle-class and low-paid ethnic minorities. For these consumers, a tax represents a real and unfair burden that hurts everyday people.

The bag tax creates more bureaucracy: Most of the tax is dedicated to establishing a new government program replete with all the bureaucracy, red tape and ballooning costs we typically see in government programs. At a time when both business and governments are tightening their belts and doing more with less, now is not the time to be creating more bureaucracy.

The bag tax does nothing to help the environment: There are no studies to prove bag taxes actually result in protection of the environment. In fact, several studies show that taxes and bans have had the opposite effect.

“Santa Clara County’s business community is genuinely concerned about the environment,” Van Dorn said, adding that many area companies are engaged in green industries with green jobs. “Many companies have voluntarily taken steps to boost recycling and limit waste. While we applaud the commission’s general objectives, the call for municipalities throughout our region to impose a bag tax is misguided and ill timed.”

In addition to the Chambers of Commerce Coalition of Santa Clara County, the following have also taken formal positions against the bag tax: California Retailers Association; California Independent Grocers Associ-ation; Neighborhood Market Association; Taxpayer’s Advocate, Inc.; California Restaurant Association; 7-11 Convenience Stores; California Industry Oil Marketers Association (they represent gas stations with convenience stores); Progressive Bag Affiliates of the American Chemistry Council; United Food & Commercial Workers Union; Goodwill Enterprises; California Taxpayer Protection Committee; 60 Plus Association.

For more information and to learn how to join the fight against the tax, the public is urged to visit www.stopthesantaclaracobagtax.org.