These are creepy times for taxpayers — the creepiest in memory.
Between the state and local ballots, there are hundreds of measures
that would increase the burden on taxpayers. If all or most of these
tax increases and bonds pass, it will be Halloween every day as
taxpayers are compelled to dole out big dollar treats to our
political class.
Much of the cause of this tsunami of tax increase proposals is due
to the Obama phenomenon. Political consultants have told their
clients in government that this is an ideal time to put tax measures
on the ballot because the presidential candidate is driving
low-income voters to the polls who will be inclined to support
higher taxes for those they see as more prosperous than themselves.
Cynical politicians have gleefully taken the advice, and are
proceeding with a policy that can best be summed up as — with
apologies to Admiral Farragut — "Damn the economy! Full taxation
ahead!" How else can they ignore the fact that our state is in a
recession and taxpayers are in a vice?
Unemployment is at 7.7 percent, and predictions are that it will go
up from here. The home foreclosure rate is setting records, and we
continue to see an out-migration of citizens according to the State
Department of Finance. And California already rates sixth in the
nation in tax burden.
The Wall Street meltdown is threatening the savings of many and
threatening those already retired. Additionally, CalPERS and other
funds that provide for public employee retirement have lost, in some
cases, as much as 25 percent of their value over the past year.
The chickens are coming home to roost. Bad judgment by elected
officials who agreed to contracts with public employee unions based
on unrealistic projections of economic growth is resulting in
billions of new obligations for already stressed taxpayers who now
must guarantee a secure retirement for government workers as their
own fortunes sink.
Adding to the uncertainty is the possibility that if Barack Obama is
elected president there will be arguments out of Washington that
anyone who is already paying income taxes is "rich" and should be
prepared to contribute to the welfare of those who pay no taxes.
Unfortunately, in spite of our dire circumstances, California’s
airwaves are being saturated with false advertising portraying state
bond measures as benefiting the economy or as having no impact on
taxes. Propositions 1A, 3 and 10 would result in $32 billion in
additional debt, including interest, which must be paid from the
general fund. This means that there will be less for other important
state programs. Powerful interests supporting education,
transportation and law enforcement will not sit idly by while their
budgets are cut to pay off bonded indebtedness, which is so high —
even without this new borrowing — that Wall Street considers
California a poor credit risk. The clamoring for new tax increases
will be deafening.
So, in a way, this election is the opposite of Halloween. Instead of
innocent children wearing spooky costumes, those knocking on
taxpayers’ doors are tax increase monsters trying to look benign by
hiding behind false images of children, a green economy and high
speed transportation for all.
Taxpayers would be wise not to open the door.