California's $19 billion deficit include several measures that would delay tax incentives

SAN JOSE (KCBS/AP) -- The state budget proposals introduced this week to close California's $19 billion deficit include several measures that would delay tax incentives aimed at improving the job market, according to a group representing more than 300 employers.

"We're going to make it tougher by taxing you to have those employees facilities here" even though neighboring states do not, said the CEO of the Silicon Valley Leadership Group, Carl Guardino.

Democratic Assembly Speaker John Perez announced a complex tax swap and borrowing scheme designed to prevent deep cuts to schools, welfare and health care programs.

Democrats in the state Senate called for $5 billion in taxes—largely an extenuation of temporary tax increases approved last year—and delaying corporate tax breaks for two years.

Guardino said the proposals introduced on Tuesday and Wednesday will only strengthen California's reputation as a state unfriendly to business.

He said the state needs to do more to lure companies trying to compete not just internationally but with other states, adding that the state desperately needs private sector jobs to lower the 12.6 percent unemployment rate.