The only thing in Sacramento shorter than a budget “solution,” is the memory of the previous budget solution.
Here, what happened only a few months ago, becomes ancient history. Some would attribute that to short attention spans; others would say it’s a cynical attempt to reprogram the public debate. In any case, in the past few days with all the hoopla over the latest budget solution that “does not raise taxes,” it is clear that the spinners have amnesia. Taxes have been raised on Californians to historically high levels in the previous solutions. And California’s employers and investors – those who provide and hope to create the jobs that will ultimately pull us out of the recession – are already paying significantly higher amounts to the state, driving us off the charts in rankings of states with the worst business climates.
Over the past nine months, taxes have been increased or accelerated on California taxpayers by more than $20 billion. Increased revenues account for more of the measures to reduce the budget deficit than have measures to cut actual spending. The result? Alarmingly high tax rates for California.
As recently as last October of 2008, to resolve the 2008-09 budget, the Legislature enacted more than $6 billion in tax increases, penalties, and accelerations on businesses and investors. Then, in February of 2009, to resolve the 2009-10 budget, the Legislature enacted $12.5 billion in broad-based tax increases on Californians. More than a third of the sales and vehicle taxes will be paid directly by businesses and a significant portion of the income tax increases will be paid by small business owners and proprietors.
This week, to resolve the deteriorating 2009-10 budget, the Legislature will consider more than $2 billion in accelerated tax collections on businesses, investors and working Californians – in effect a forced, no interest loan from what remains of the state’s productive sector.
Government unions and their allies should refresh their memories. Those who are providing the jobs in our state are already doing more than their share to offset years of irresponsible overspending by government.