Jerry Brown and a Return to Tax Commissions
Governor-elect Jerry Brown’s goal of reforming and restructuring California will surely follow the well-worn path of tax reform. Brown’s two immediate predecessors, Gray Davis and Arnold Schwarzenegger, both called together state commissions to study restructuring the state tax system.
California’s roller-coaster budget ride is created by its current mix of taxes, particularly the state’s heavy reliance on the steeply progressive income tax. Brown’s effort to smooth the ups and downs of California’s budget problems will bring him around to the tax system.
Davis’s commission, known formally as the California Commission on Tax Policy in the New Economy, was headed by current Los Angeles City Councilman Bill Rosendahl. Among other recommendations, the commission suggested that sales tax rates be lowered but extended to services, that the vote requirement to raise special taxes on the local level be reduced, and that a long look be taken at periodically reassessing non-residential property to market value.
A Second Chance for Governor Brown and California
During the last six months, Governor-Elect and former Governor Jerry Brown pledged to voters and taxpayers throughout California that he had both the experience and the courage to lead California out of its economic malaise and financial doldrums. The voters endorsed his candidacy because they believe that California’s economy and budget deficit are fixable. His combination of experience and courage gave them hope. Now is the time for Governor-Elect Brown to build on that support and take immediate action.
The phrase “it’s the economy stupid” has been used by many elected officials, candidates and pundits over the years, but it has never had a greater ring of truth than today. Last Tuesday’s elections and exit interviews emphasized that Americans are frustrated by the lack of jobs and economic growth and they want their elected officials to respond. California voters also indicated support for efforts to improve their environment and opposition to tax increases.
Given this backdrop, a future of economic growth, new jobs, larger tax revenues and a cleaner environment will depend entirely on the ability and willingness of businesses to invest in California.
Name Calling Won’t Change Facts About Green Jobs
In the aftermath of a decisive win for clean energy last week, supporters of the status quo have resorted to more distortions and name-calling, claiming the promise of green jobs was a lie. I am not surprised by this uneducated and irresponsible statement, as it just a sampling of the misinformation that was disseminated by proponents of Proposition 23 during the election campaign.
For example, despite Ms. Kerns’ claims, Solyndra isn’t shutting down its plant – the company is consolidating its operations and is sticking to its plans to increase production next year. (Source)
Let me offer a few additional facts about a California industry actually creating jobs in the midst of this economic downturn. Hundreds of solar companies – contractors, distributors, and manufacturers – throughout California have been growing their businesses, mostly without fanfare or press releases. Here are a few of the manufacturers who have been in California for some time but seldom receive the attention of the press: