Author: Jon Coupal

If Abraham Lincoln were delivering his Gettysburg Address today, he
might feel compelled to conclude, “… that government for the
government shall not perish from this earth.” He was “Honest Abe”
after all.

Let’s take a look at how Sacramento really operates.

Those in power in the Capitol — as well as many local politicians
— make skillful use of those who rely on government services to
advance their spending agenda. They use children, the disabled, the
elderly, and others who appear vulnerable, to justify increasing
taxes. When reasonable arguments are made that higher taxes in an
already high-tax state could lead to fiscal ruin and less for
everyone, politicians and bureaucrats use these dependent classes as
human shields.

In this season of thanksgiving, please don’t blame taxpayers if they
are distracted by the injuries being perpetrated against them by our
political class.

California ranks 6th nationally in tax burden, but taxpayers are
being assaulted by brain dead state and local politicians, who won’t
be happy until we are number one. Unemployment is at 8.2 percent and
rising, housing foreclosures are at a record level, and the economy,
which is bad for most of the rest of the country, is even worse in
our state.

Our government officials seem to be living in a fantasy world.
Facing a potential $28 billion shortfall over the next two years,
the response by the governor and most in the Legislature is to seek
to raise taxes while begging Washington for a bailout. Don’t be
surprised if their next plan is to have the state invest tax
proceeds in lottery tickets in the hope of striking it rich.

Seems that Governor Schwarzenegger wants to help out his old Hollywood friends with millions of dollars in tax breaks. He makes a case that lower taxes on film and television companies will reverse the trend of runaway production. Currently, California is losing out to at least 40 other states and Canada that are luring away production companies with very attractive tax incentives.

Five years ago, 66% of feature film production took place in California. Last year this was reduced to just 31% and the governor wants to help an industry that supports about 250,000 employees.

While a non-critical evaluation might make this tax cut seem a good idea — encourage a major business to remain in our state and retain taxpaying employees — it is coming from the same governor who is supporting tax increases on all Californians.

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?

Some months ago, a baby-boomer friend of mine told me his retirement
plan was to "work until I die." We both chuckled.

No one who has watched the equity in their homes and the value of
their investments virtually vaporize before their eyes in recent
weeks would find this funny. Many of those who were planning to
retire in the next 10 to 15 years are now looking at work as the
only way to see them through their "golden years." Those already
retired are especially vulnerable even though Social Security
payments are going up by almost six percent next year. And
generation X is anxious too. Those now at the midpoint in their
working careers are wondering if there is such thing as a "secure"
investment and they are starting to take seriously warnings that
Social Security — a system that relies on those who are working to
support those who are retired — may run out of money before they
retire.

For many, these are scary economic times as the value of homes and
investments declines. Adding to the anxiety, property tax bills are
arriving in mail boxes across the state.

Fortunately, as a direct result of Proposition 13, which limits
increases in a property’s assessed value to two percent annually,
most property owners have a good idea what their bill will be even
before opening the envelope. Still, the Howard Jarvis Taxpayers
Association recommends that taxpayers carefully examine their latest
property tax bill. Although not common, assessors do make mistakes.

Taxpayers should understand the various charges and make certain
that they are not being dunned for more than they are legally
obligated to pay. The best way to check a tax bill is to have your
previous year’s bill handy for reference.

Yesterday, the Howard Jarvis Taxpayers Association filed a lawsuit against the California High Speed Rail Authority for a very simple reason: Under the plain language of Prop 1A, which was placed on the ballot by Assembly Bill 3034, the Authority was required to prepare a business plan by September 1st. That plan is more than five weeks late, leaving voters and policy leaders without the critical information they need to make an informed decision on Proposition 1A.

It is really hard to imagine a more clear violation of law. The very first provision of AB 3034 states:

“The authority shall prepare, publish, and submit to the Legislature, not later than September 1, 2008, a revised business plan that identifies all of the following: the type of service it anticipates it will develop, such as local, express, commuter, regional, or interregional; a description of the primary benefits the system will provide; a forecast of the anticipated patronage, operating costs, and capital costs for the system; an estimate and description of the total anticipated federal, state, local, and other funds the authority intends to access to fund the construction and operation of the system; . . . . The revised business plan shall also include a discussion of all reasonably foreseeable risks the project may encounter, including, but not limited to, risks associated with the project’s finances, patronage, construction, equipment, and technology, and other risks associated with the project’s development. The plan shall describe the authority’s strategies, processes, or other actions it intends to utilize to manage those risks.”

Even in the best of times, the three major bond proposals on the
November ballot would merit a thumbs down. Propositions 1A, 3, and
10 would put taxpayers another $16 billion in debt to fund some
dubious projects.

Proposition 1A spends $10 billion as a down payment on a massive
bullet train project. Promoters, which includes the company
responsible for Boston’s infamous "Big Dig" disaster, claim the
project can be completed for about $50 billion. However, a just
released study by transportations experts, which includes a former
president of the High Speed Rail Association and a former member of
the Amtrak Reform Council, show that actual costs could easily
exceed $80 billion.

Since the founding of our republic there has been tension between
citizens who want to know about the conduct of their
representatives, and those in government who would prefer to do
their business in secret.

Secrecy is not always bad policy. Few would argue that Franklin
Roosevelt should have revealed the invasion plans for Normandy prior
to D-Day.

However, the responsibilities of most politicians are mundane and it
is hard to argue that the public should be denied knowledge of how
efficiently they are managing and spending taxpayers’ dollars.