Utah Is Laughing
Last month I was invited to address a joint tax committee of the
Utah Legislature to discuss the relative strengths and weaknesses of
various methods of taxing real property. Specifically, Utah is
considering adopting an "acquisition value" based system — such as
Proposition 13 — to replace its traditional "current value" system
that taxes property based on what it is worth now rather than the
purchase price.
Although the legislators had lots of questions, I was amazed at
their level of knowledge, their business acumen and their concern
for taxpayers. More than that, they were unfailingly polite and none
of them tried to set me up for a "gotcha" moment.
Having testified before the Utah Legislature once before several
years ago — and having a similar enjoyable experience — I thanked
the committee’s co-chairs for the invitation and noted that the
experience was different from some of my appearances before the
California Legislature.
At the mention of the California Legislature, several members of the
committee laughed. The Chairman grinned and said that "we love the
California Legislature — they do more for Utah business development
than anyone else."
Gay Marriage, the Peripheral Canal … and Bo Derek
Catching up on a number of items at week’s end …
The Field Poll indicates a close election on Proposition 8, the gay marriage elimination amendment. The poll says as of now 51% oppose the amendment and 42% favor it. Surprisingly, the highest percentage of opposition to this measure was the baby-boomer generation, although by only a close 2% over the 18-29 year olds. Fox & Hounds blogger Joe Mathews has opined that gay marriage will eventually be accepted because of the strong support for the issue by the younger generation, yet here are the baby-boomers leading the way.
There will probably be a number of ballot proposition issues that will go down to the wire in November. Given that the Field Poll says at this point Sen. Obama is ahead of Sen. McCain by 24% in the presidential race, wouldn’t it be ironic if what drove voters to the polls in California this historic election year was not the presidential election but ballot issues?
Everyone Should Be Part of Our Government
Democrats’ efforts to impose significantly higher taxes on the state’s businesses and wealthiest individuals is but the most recent incarnation of the tyranny of the majority prophesied by leading thinkers in our nation’s founding. The concept that a majority can abusively (or tyrannically) take the property of others for the interests of the many has long been the focus of constitutional scholars and philosophers in our society.
And yet the desire to dramatically fine narrow segments of our society to fund the general government, at the exclusion of others and, in many instances to subsidize others is one of the common mantras of state and local finance. Today the legislature pursues businesses and the successful to fund a government whose spending is accountable to no one.
It happens at all levels of government. Local governments tax hotel residents to fund local programs like parks and senior centers. Senator Obama proposes a new shift to a more progressive federal tax system that would eliminate the tax liability of some ten million Americans. The state legislature targets a narrow group of people who already account for a disproportionate share of the state budget.