Sacramento Democrats, desperate to avoid the kind of reduction in the size and scope of state government in California that are needed to balance the state’s books, are unbelievably still pursuing tax increases as a "solution" to chronic overspending, and a tax code that is predictably volatile as it disproportionately taxes the income of California’s wealthiest citizens.
In yesterday’s Los Angeles Times there is a story about how Democrats are supportive of a $1.50 per pack increase in cigarettes which, according to their analysis, would result in a $1.2 billion increase in tobacco tax revenues to the state’s general fund.
This is a stupid idea. As we have pointed out many times, Californians are among the most overtaxed people in the entire country, and the last thing we need is higher taxes, frankly, on anything. Never mind the fact that this takes us back down the path of the "sin tax" where all-knowing politicians in Sacramento hoist taxes on activities that they decide are "bad" for our collective community. Ironically, of course, taxes like these create income streams on which government becomes dependent, of activities that these "pious" legislators think is wrong. Suddenly the state has an interest in increasing the frowned-upon behavior — in order to attain more revenues.
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May 26th, 2009 at 12:00 am
John:
I have agreed with nearly all of your anti-tax positions but have to disagree with this one.
The LA Times article noted that minority-group opposition to this proposed increase, supposedly because it is “regressive” and “hits their community more heavily as persons of color tend to smoke more”. What was unstated was that the same groups place higher demands on public services, especially health services, often as a direct result of their habit.
Instead of opposing this increase, let’s embrace it, but with one condition: the rapacious income tax increases earlier this year need to be repealed entirely. In fact, make the legislators an offer they can’t refuse: an unlimited tax increase of tobacco products, but only if it is used, dollar for dollar, to cut income taxes.
You’ll probably think I’ve smoked something else. But seriously, a tobacco tax increase has the twin advantages of providing a relatively stable tax source (unlike the more volatile income and capital gains taxes) AND it can essentially be seen as a “user fee” in that the funds collected would be paid by the same people whose habit places heavy demands on state health services. This is a deal worth making.
May 26th, 2009 at 12:00 am
As a child I abhored the story of the sinking ship, sailors screaming for help, the captain courageously at the helm as the water rose above his knees…the RATS were the first ones off the ship gleefully riding floating pieces of debris in dangerous seas…
Fast Forward: Is it every business for themselves…is it every man for himself?
Or is it let the conservatives do the heavy lifting fighting tax increases, moral decay, blurring of ethics while liberals, so called independants,moderates and RINOS snipe,bicker and mollify citizens into economic and social culture oblivion….
You are witnessing the worst side on mankind here in California….there are no visionaries or statesmen just weak spined “me generation” weanies in both parties.
I am abhored once again!