Parsky’s Leap of Faith
Gerald Parsky is about to engineer one of the great leaps of faith in modern California policy making. The chairman of the Commission on the 21st Century Economy is assembling bipartisan support for a proposal to radically reshape a state tax system that has been more or less in the same form for nearly 70 years.
This makeover is sailing on the wings of good intentions, on an imperative for action, and on compromise – but most assuredly not on data or analysis. Mr. Parsky knows this, which is why the recommendations to the Legislature and Governor are for "consideration" and for further study, as opposed to outright implementation. This serious panel has brought forth the next Big Thing, but is gingerly – almost sheepishly – nudging it to the world of practical politics.
If, as expected, Mr. Parsky assembles a sufficient majority of Commissioners to support the plan, it will probably look like this:
· Create a new Business Net Receipts Tax (BNRT). The tax base is a business’ gross receipts from all sources less purchases from all other businesses.
Getting a Jump on Economic Impact
Now that we’ve lived with environmental impact reports for decades, isn’t it time the business community insists that state and local governments get economic impact reports before passing new laws, ordinances and regulations?
After all, new rules routinely get approved throughout California with nary a thought to how they may destroy jobs or otherwise rough up businesses.
One big example: AB 32. It was passed by the state in 2006 to reduce greenhouse gas emissions. The intent was laudable enough, but apparently the economic consequences were not seriously considered. Only two months ago, a couple of academics released a study that said when AB 32 is fully implemented, there will be a 10 percent loss in gross state output, 1.1 million jobs will vanish, California families will face increased costs of $3,850 a year and small businesses on average will see increased costs of almost $50,000.
Civility!
"Your mind is on vacation and your
mouth is working overtime." – Mose Allison.
What possesses one member of
Congress at a joint session, while listening to a prime time Presidential
address, to suddenly yell out: "You’re a liar!" – words that were quickly eaten by his own post-address
apology and Obama’s prompt next-morning acceptance of same.
When it happened, the TV camera was
fixed on the President at the lecturn, with Speaker Pelosi sitting behind, on
the viewer’s right, and VP Biden, also sitting behind, on the left. Pelosi looked like she had been punched
in the stomach if you play back a video recording of the speech, but wisely did
not call order or single out the single Congressman who let his mouth
obliterate his reason on national TV.
How did we get here?