State Board of Equalization Member Bill Leonard, a longtime FR friend, sent the following letter over to the President of the California Taxpayers’ Association, upon hearing that they had endorsed the Governor’s budget proposal that includes a massive, multi-billion dollar sales tax increase…
Teresa Casazza, President
California Taxpayers’ Association
Dear Teresa,
I am sorry that I was unable to reach you this morning, but I did want to let you know as soon as possible that I oppose the decision of your organization to support general tax increases. If this position does not violate the charter of your organization, it should.
I must admit to you that I fail to understand the Board’s motivation or logic, and I am left with every variety of speculation. With California’s taxpaying individuals and businesses operating at a low margin as it is, the idea of raising the state sales tax 14% does not make economic sense. With both presidential candidates talking about lowering the tax burden on working families, the Cal-Tax position does not make any political sense either. Nor can I imagine that this decision will help at all to move the debate on the state budget itself.
While I share your board’s concern that the budget needs to get done, it would be more helpful for Cal-Tax to offer its own middle ground between all five parties rather than recycle a plan from last month. Since the Governor’s August compromise has already been rejected by all four legislative caucuses, this move only serves to remind everyone that the plan has no legislative sponsor.
I am extremely disappointed with this decision by Cal-Tax. Cal-Tax has been the universally acknowledged leader in thoughtful analysis of tax policy and has been steadfast in holding the line on tax increases, revenue enhancements, fee adjustments, or whatever euphemism has been used. Holding the line on government tax increases is an honorable and full-time challenge. Your organization has earned the thanks of all California taxpayers. Yet, in this one vote you have thrown away that sterling reputation.
Sincerely,
Bill Leonard
California Taxpayers’ Association
Dear Teresa,
I am sorry that I was unable to reach you this morning, but I did want to let you know as soon as possible that I oppose the decision of your organization to support general tax increases. If this position does not violate the charter of your organization, it should.
I must admit to you that I fail to understand the Board’s motivation or logic, and I am left with every variety of speculation. With California’s taxpaying individuals and businesses operating at a low margin as it is, the idea of raising the state sales tax 14% does not make economic sense. With both presidential candidates talking about lowering the tax burden on working families, the Cal-Tax position does not make any political sense either. Nor can I imagine that this decision will help at all to move the debate on the state budget itself.
While I share your board’s concern that the budget needs to get done, it would be more helpful for Cal-Tax to offer its own middle ground between all five parties rather than recycle a plan from last month. Since the Governor’s August compromise has already been rejected by all four legislative caucuses, this move only serves to remind everyone that the plan has no legislative sponsor.
I am extremely disappointed with this decision by Cal-Tax. Cal-Tax has been the universally acknowledged leader in thoughtful analysis of tax policy and has been steadfast in holding the line on tax increases, revenue enhancements, fee adjustments, or whatever euphemism has been used. Holding the line on government tax increases is an honorable and full-time challenge. Your organization has earned the thanks of all California taxpayers. Yet, in this one vote you have thrown away that sterling reputation.
Sincerely,
Bill Leonard
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