GOP TO UNVEIL "NO TAXES" BUDGET FIX
Today State Senate and Assembly Republicans will unveil a proposal to resolve the state’s fiscal crisis without increasing taxes. Republican legislators are to be commented for putting ideas out there on the table. There has been a long-standing internal argument amongst GOP strategists about whether to put forward a GOP proposal or not. On one hand, some have said that putting up a list of GOP sponsored cuts serves only to alianate many for no reason, since Democrats would never let most of the proposed cuts see the light of day. On the other hand, to oppose tax increases without providing a road-map to resolve the crisis without them becomes a difficult argument to continue to make. I think it is a great idea, at this stage, for as many ideas as possible to reduce the size and scope of state government be put into the idea marketplace, and commend GOP legislative leaders in advance for their proposal due out today. We’ll share the details with FR readers as they become available.
THE UAW "SPIN" IS WRONG
I find it very annoying that the "spin" from U.S. Senate Republican Leadership is that the proposal to provide $15 billion in taxpayer funds to "bail out" American automakers is that the Union of Auto Workers wouldn’t agree to employee concessions. While it may have been the case that this major union would not agree to whatever demands were being made of them, the message from the GOP should be very clear — tax dollars taken forcibly from taxpayers should never be used to subsidize private companies, no matter their size. Republican Senators should be making the case for how filing bankruptcy, like any other companies that cannot pay all of their creditors, is the appropriate route for Chrysler, Ford or General Moters. By blaming the UAW, the implication (horrible if true) is that if the union did make concessions, Republicans would put up the votes for the bail out. If anyone deserves some blame, how about our President, who seems intent to put the American taxpayers head-first into the auto manufacturing business. Shame on him.
SURF CITY TO BUY UP HOUSES?
My home county of Orange is home to California’s "Surf City" — Huntington Beach. Apparently the City Council there is going to be considering tonight, and this is serious, whether to put the local government there in the business of buying up houses under foreclosure, fixing them up, and then making them available as affordable housing. This has to be one of the worst ideas I have heard in a long time. Sometimes politicians in local government shouldn’t ask whether they CAN do something, but whether they SHOULD. This is America, where we believe in a limited role for government at every level. Clearly the opportunity is available for the private sector to come in and buy up homes under foreclosure, and Surf City leaders should stay out of the way of that market-based process. Some have said that this kind of proposal is being floated to take advantage of federal funding that is available. Conservatives in local government should fend off efforts by Washington, D.C., to get local governments into areas where they don’t belong. We have some good Republicans on the council in "Surf City" — I only hope that there are enough of them to stave of this dumb idea.
December 15th, 2008 at 12:00 am
I’m so pleased that the GOP is putting up a budget proposal with no new taxes. There will no doubt be some argument about priorities, but that is a healthy debate. When my paycheck comes in, I know that’s all the money I’ve got to spend. The only remaining issue is what are my priorities. The state needs to think that way now.
December 15th, 2008 at 12:00 am
I agree with Jon – to oppose taxes without providing alternatives makes GOP appear to be devoid of any substantive alternatives. May I offer 8 of my own:
1. Combine the Franchise Tax Board, Board of Equalization and other Finance activities into one entity. When Gov. Wilson made the recommendation in the 1990s, it was estimated that this would save nearly $500 million annually.
2. Curtail welfare spending by eliminating state funding for a 5th year of the dole.
3. Limit the compensation of state workers eligible for public pensions to 40 hours per week. It is absurb that overtime is allowed to be taken into account when calculating pensionable earnings, especially for department executives.
4. Equalize the state revenue guarantee that returns property tax revenues to County Gov’t. Currently, Orange County receives substantially less than it sends to Sacramento than, say, LA county because OC’s taxes were lower when Prop 13 was passed.
5. Introduce an oil and gas severance tax. Most, if not all, other oil and gas producing states have one, including Texas and Alaska. Why shouldn’t CA?
6. Apply the Sales and Use tax equally to all goods and services in the state, including groceries and business services BUT lower the rate to ensure that the same overall amount of revenue is collected.
7. Suspend the Prop. 98 revenue guarantee to public schools, as is allowed for during times of financial emergency. Schools should share equally in the resolution of the state’s financial shortfall.
8. Work with the Gov’t of Mexico and others to incarcerate illegal aliens – mostly Mexican – in the prisons of their home countries, with strict safeguards to ensure that the full sentence is served. There are by many estimates ~ 20,000 illegals serving sentences in CA State prisons. This would help solve the overcrowding problem, and return illegals to their home countries.
9. Eliminate the requirement that businesses pay overtime after an employee works 8 hours/day. Instead, base overtime on a 40-hour work week, which is the standard in virtually every other state.
10. Return the Legislature to a part-time body. Little, if any, good has come from having a full time legislature, other than the employment (in the case of Democrats) of individuals who would most likely be unable to find other remunerative employment.
I hope this helps.
Bernie Torbik
Huntington Beach, CA
December 15th, 2008 at 12:00 am
Wow! The Grinch stole Christmas….oops….sorry, stole Holidays….or is it Soltice…..or Kwanza….or there is no Chris Kringle…. Surely libs cannot take such a big whack during this joyious season…or are some legislators on to something citizens have not been privy too….like we are in deeper due due….than already reported
December 15th, 2008 at 12:00 am
Bernie,
That’s a pretty good list. However, we want NO new taxes so #5 is a non-starter. Oil severence tax is just a gas tax in diguise and we don’t need that during a recession.
I really like the #3 and #8.
If we contract with Mexico to house their citizens and pay them, say, $20,000 per year to do so, we can bet that Mexico will make sure they stay incarcerated. Since it costs us $35,000 per year to incarcerate one person, we will save $15,000 per illegal alien and save $300 million per year.
This is the kind of creative thinking that we need in Sacramento right now. So, Bernie when are you running? (but lose the new taxes)