Which Tax?
What’s it going to be – income tax, sales tax, service tax, split roll property tax, oil severance tax, vehicle license tax or a combination of these taxes? Which tax will those who plan to raise taxes through a November ballot initiative choose? Last Friday, Governor Jerry Brown told the Associated Press, "We don’t have […]
GOP Straw Poll and Party Platform
At the California Republican Convention in Los Angeles this weekend, Congressman Ron Paul was a runaway victor in the Straw Poll with 45% of the vote. Governor Rick Perry, Paul’s fellow Texan, was second with 29%. Thursday, the Field Poll indicated that Mitt Romney was the choice of California Republicans with 28% of the vote […]
Jerry Brown Picks a Fight with Howard Jarvis Again
Here we go again – thirty-three years later Jerry Brown (the once and current governor) believes he can best Howard Jarvis in a battle over taxes. He didn’t win in 1978 when Proposition 13 was on the ballot. He may think the situation has changed, new demographics in California today, a wider gap between the […]
Dramatic Turn in Quest for a Spending Limit
With the legislature attempting to push the rainy day fund/spending limitation (ACA 4) off the 2012 ballot with SB 202, the effort to put a spending limit initiative on the 2012 ballot is heating up. Previously, there had been discussions about a tighter spending limit than ACA 4 provided. But the pace quickened now that […]
Another Interesting Twist with SB 202
We
know that SB 202 was a gut-and-amend bill that was introduced the last day of
the legislative session to move initiatives from the June ballot to November
largely at the behest of the public employee unions who believe they have a
better chance of defeating the Stop Special Interest Money Initiative.
We also
know that SB 202 included a provision to move from the 2012 ballot to 2014 the
rainy day fund measure (ACA 4) agreed to by the legislature during the 2009
budget deal. The reason was to stall the measure opposed by the unions who
don’t want spending capped. Whether the stall is for one election cycle or if
it becomes an annual vote by the majority to put off the measure remains to be
seen.
Another
possibility is that the Democrats, if they secure a two-thirds vote in the
legislature, would simply vote the measure out of existence before the people
get a chance to vote on it at an election.
Bill Language to Undermine People’s Initiative Released
SB
202 by Senator Loni Hancock designed to play games with the initiative
process to satisfy public employee unions finally shows itself just 15 hours
before the designated end of the legislative session. The bill states that any
initiative or referendum that qualifies after July 1, 2011 has to appear on a
November General Election ballot.
One argument put forth for the reason the bill exists is
that a larger turn out of voters should make decisions on initiative measures.
Funny that this motivation didn’t arise over the last four of five decades but
only now when some legislators are opposed to what is headed to the ballot by
initiative petitions.
Special Session for Overall Tax Reform is a Good Idea
In response to Governor Jerry Brown’s announcement that he reached
a deal with Assembly Democrats and a couple of Republicans to pass a tax
plan involving the single sales factor for multistate corporations and tax
reductions or incentives for personal income taxpayers and small business,
Republican Senate leader Bob Dutton made a good suggestion. Examine overall tax
reform in a special session.
Dutton did not want the complex deal to be announced at noon
on one day and be passed by both houses of the legislature the next day without
adequate time for study and debate. As Dutton put it, "There
is nothing more complex than tax reform, and trying to jam through a proposal
on the last day of session without transparency or input from the public and
tax experts is irresponsible."
Using the deal as
impetus, the idea of discussing the deal with a broader goal of looking at tax
reform is worth consideration by the governor. Many experts believe the
California tax system was built for another era. Changes could be made that
would encourage business and entrepreneurship, which in turn, would produce
revenue for the treasury.
Panel: The Key to CA Politics is Latino Vote
A panel at the Ronald Reagan Presidential Library prior to the Republican presidential debate focused on the problem for Republican candidates in California — the Latino vote.
Dan Schnur, head of USC’s Unruh Institute and the USC Dornsife/LA Times poll called the Latino vote President Barack Obama’s “life preserver” in the state. Referring to the recent poll he oversaw, Schnur said while Obama leads amongst white voters in California by a point or two, he holds more than a 2-1 lead with Latino voters giving the president a 15-point overall lead over a generic Republican opponent in the Golden State.
While Schnur argued that Republicans positioning on the immigration issue is hurting the party with Latinos, California Field Poll director Mark DiCamillo suggested Republicans face another challenge to capture the Latino vote — a difference in political philosophy. DiCamillo said Latinos look more favorably on government for help in securing education and health care. DiCamillo said Latinos generally share Obama’s vision of a more expansive government.
Debate Notes
Michele Bachman said at the Republican debate last night at the Reagan Presidential Library that repealing Obama health care along with jobs would be the chief issues of the 2012 presidential election.
Of course, that might depend on who the nominee is. Don’t count out the issue of Social Security, which gained prominence when Texas Governor Rick Perry called it a “Ponzi scheme” and a “monstrous lie” to younger Americans.
Former Massachusetts Governor Mitt Romney jumped on Perry’s comments, declaring, "Our nominee has to be someone who … isn’t committed to abolishing Social Security but who is committed to saving Social Security."
The Social Security debate will remain prominent. Even the former president responsible for Social Security is getting into the debate. The Franklin Roosevelt Presidential Library in New York currently has a special exhibit titled, “Our Plain Duty,” FDR and America’s Social Security.”
Taxation Principles Sacrificed for Mandatory Single Sales Factor
This piece was co-authored by Teresa Casazza, President of the California Taxpayers Association
The effort to raise more than a billion dollars in new taxes
by forcing some corporations to use the single sales factor apportionment formula –
even though the formula may not accurately determine how much income is taxable
in California – violates a number of
taxation principles, and only serves to enhance California’s reputation as a
bad place to do business.
State legislators and the governor are trying to create a
billion-dollar tax increase on some corporations by passing SB 116, which will
end corporations’ ability to choose between paying their state taxes through a
single sales factor or through a formula that includes property, payroll, and
sales factors.
Just two years ago, the Legislature agreed to change to the
optional tax plan to encourage business growth in the state. When an effort to
repeal the new law was placed on the ballot by initiative last year, the people
rejected the repeal effort, agreeing with taxpayer groups that said the
initiative would reduce job opportunities for Californians.