It goes without saying that if Democrats are engaged in budget negotiations, there is going to be another clandestine effort to sneak a tax increase into the final solution.
Senate Democrats are purportedly attempting to increase the current 5 cent deposit on small containers to 10 cents. What is the big deal with a measly 5 cents?
Since the smaller containers are approximately 88% of the beverage market, this increase would result in a $980 million additional tax on consumers.
A nickel will get you a billion, which is real money in budget discussions!
The reality is that the beverage container recycling fund has become insolvent because of borrowing for the state general fund. This is an absurd consequence caused by fiscal mismanagement, which again was not the fault of taxpayers.
The Senate leadership, along with environmentalists, is proposing the10 cent deposit as a way to avoid reductions associated with the beverage fund deficits and to generate more money for their pet causes.
The voters spoke clearly on May 19th. No more taxes! That includes another nickel a drink tax on nearly every soda, juice, and water that consumers purchase in California.
This is totally unacceptable!