Much has been made about the mercurial nature of California’s current tax structure – most specifically the fact that a vast percentage of our state’s revenues are heavily reliant on income taxes – especially on those wealthiest Golden State residents. During times of “plenty” – such as the dot com boom, this system brought record amounts of taxpayer dollars into the state treasury. For the past few years, however, with the real estate bust, the collapse of the dot coms, and the country moving into a recession, we’ve seen state tax revenues plummet.
Governor Schwarzenegger signed an Executive Order creating a Commission on the 21st Century Economy – laying out the following mission for this group: “Stabilize state revenues and reduce volatility; Promote the long-term economic prosperity of the state and its citizens; Improve California’s ability to successfully compete with other states and nations for jobs and investments; Reflect principles of sound tax policy including simplicity, competitiveness, efficiency, predictability, stability and ease of compliance and administration; ensure that tax structure is fair and equitable.”
A tall order, indeed, and as we know, what comes out of a group like this depends in large measure on who is appointed to serve on it. I have to admit that I was less than impressed to see that this group would be populated by appointees of the Governor, the Senate President Pro-Tem, and the Assembly Speaker — A bit like asking the fox to design the security for the hen house.
Jon Coupal, President of the Howard Jarvis Taxpayers Association in a recent column summed up the appointments to the committee this way:
But the Commission — which has already blown through two deadlines to complete its report — also has its share of uber-liberals. Members like former legislator Fred Keeley who unabashedly has a pro-tax agenda. In addition to pushing for a "carbon tax," he also is seeking an amendment to Prop 13 which would increase property taxes on businesses.
If Coupal’s analysis wasn’t enough cause for concern, he does not even mention that Governor Schwarzenegger appointed to head up the Commission a notoriously liberal Republican, Gerry Parsky, who has for years waged battles against party conservatives.
This commission has already asked for and been granted an extension from their original timeframe in which they were to somehow develop the panacea for the ills of California’s unhappy tax code. They are due to come out with a final report shortly, and so I think that it is important to establish some important “markers” from which to judge the product of this Commission’s work.
**There is more – click the link**
August 25th, 2009 at 12:00 am
Well, Jon, I believe another criteria should be whether the change results in less or more revenue volatility: that is afterall the claimed reason for the group. I certainly agree with your other points.
August 25th, 2009 at 12:00 am
A constitutional revision only means bend over taxpayers….the final reeming!
Conservative Republicans should not even touch the side of the party unity bed with RINOS on tax policy for California….
Abandon RINOS including go along to get along nice guy Campbell and the naive and calculating EBAY WONDER. Who are these opportunists to set policy for conservative Republicans….big names, dumb ideas.
Stand for something except plain vanilla…….stand up for producers/tax payers for it is almost over….the moochers are bleeding us dry!!!!
Identify with winners day in and day out….the job creators, those who raise standards of living instead of your precious unimaginative, bloated staffs and lobbyist buddies.
Get something “right”.
August 25th, 2009 at 12:00 am
What we CANNOT do, under any circumstances, is trade lower marginal income tax rates for a new type of broad-based tax, like the business net receipts tax, sales tax on services, or some kind of modification of Proposition 13, such as split roll. Such a move would be a farce, as those marginal rates would very quickly be restored by a future legislature or proposition to “help the kids” or some other such thing, and we will have more taxes than before.
August 25th, 2009 at 12:00 am
Mr. Coupal and Mr. Fleischman:
I’ve noticed that a standard Tax Hike considered by these kinds of Blue Ribbon
commissions is to impose Sales Tax on items purchased over the INTERNET.
I hope HJTA will keep an eye on that type of anti-consumer tax policy.
Thank you, Mr. Coupal, for the great job you did on Proposition 1A.
Your frequent talks with talk hosts “John & Ken” on KFI radio were
most effective.
August 25th, 2009 at 12:00 am
A Commission is just another way for politicians to duck the job they are supposed to do.
Again Arnie has come up with another way to figure out how to take more private sector money and give it to the Hogs at the trough in the public sector.
The press release will go something like this.
This Blue Ribbon Panel of the “Where Going to stick it in your Shorts Commission” has come up with 4,675 ways to confiscate your money a nickel at a time, we have to pass the commissions recomendations 100% without debate or modification , you can trust the Bipartisan Experts at the ” Where Going to stick it in your Shorts Commission ” to have your best interests at heart.
LOLLLLLLLL !!!!!!!!!!!!!!!!!!!!