Republican Insurance Commissioner and Gubernatorial candidate Steve Poizner sat down with reporters with the Sacramento Bee this morning. He made a common sense suggestion on how to keep the state from going insolvent without ANY tax increases. Rather than pursuing an 18 month solution, perhaps we should look more short term, so that we don’t have to raise taxes? A novel thought.… Read More

Kudos to CalTax for picking up on the Board’s reluctance to give up extra resources with regard to the new Flavored Malt Beverage regulation (link).

When we adopted the regulation last year, over my objections, the Board told the Department of Finance to expect $38 million in revenue for the fiscal year. As I warned repeatedly, it turns out the regulation is unenforceable and easily dodged.

The companies this regulation sought to punish simply changed the formula in their products so they no longer contain distilled alcohol. As a result, year-to-date, the state has collected only $6,000 of revenue. (Yes, that means our expert revenue estimates were off by 6,333%) To gear up to collect this tax we asked the Department of Finance for more money. Finance now understands how ridiculous this tax is and they want the BoE to completely withdraw the request. I agree with Finance. With a hemorrhaging state budget this should be a very simple decision to save the state money.

The BoE is asking for $1,328,000 (General Fund) in Fiscal Year 2009-10. Now that we… Read More

Today GOP Gubernatorial aspirant Meg Whitman gave the first of three major speeches she intends to make this week. With all of the politics taking place in Sacramento right now, I don’t really have much time to cover and analyze her remarks — right now. We’ll be able to pivot back to 2010 politics soon enough (Whitman conducted a couple of interviews with newspapers that are certainly worthy of commentary).

Whitman spoke today in the Silicon Valley (which she would know well) at the Tech Museum of Innovation in San Jose. I have attached below a link to her speech. If you’re following this primary, you should read it — as it is Whitman’s first major address as a candidate.

Ironically, I was last at the Tech Museum a couple of years back, to attend the swearing-in ceremony of newly elected Insurance Commissioner Steve Poizner. How poetic. (*Note,… Read More

Given that Senate Republican Leader Darrell Steinberg has lectured his colleagues to "bring their toothbrushes" as a statement of his willingness to "lock down" the State Senate until somehow, out of pure physical exhaustion, he can gather votes for his major tax increase (good luck) —members of the State Assemblyare well prepared if Speaker Karen Bass follows uses the same sort of strong-arm tactics the legislature’s lower chamber.

Assemblyman Bill Emmerson, an orthodontist by profession, has provided his Assembly colleagues with toothpaste and toothbrushes.

In a note with his small gift of hygiene products to his colleagues, Emmerson wrote, “I hope this small tube is enough to get you through these trying budget negotiations.”… Read More

Our esteemed editor Jon Fleischman posted a John Fund commentary on the state budget crisis, in which Fund mentioned speculation that Darrell Steinberg and Karen Bass might pass a tax hike on a majority vote.

I say: please, go right ahead. Not only would it be declared unconstitutional, but California voters would be presented with an enormous, purely Democratic tax hike.

I’m all for clarity, and in this case such a rash action by Bass and Steinberg would make it crystal clear to California voters that the Democrats are the party of higher taxes, the party of raiding working family budgets rather than restraining the state spoending spree.… Read More

This morning we praised Senator Cox as being one of 13 GOP Senators who are keeping every family in California safe from billions in new taxes. Now the word is that he is in heavily, unilateral negotiations to try and “strike a deal” — not good. Republicans united can move forward a no taxes plan, such as the one simply articulated by Steve Poizner today. Senator Cox, please help Republicans reject this plan!… Read More

Benjamin Franklin spoke these words 222 years go at the Constitutional Convention, but he may as well have been commenting on the rhetoric coming from those trying to foist a $14 billion tax hike on Californians to pay the the recklessness of our rulers:

Hence, as all history informs us, there has been in every state and kingdom a constant kind of warfare between the governing and the governed; the one striving to obtain more for its support, and the other to pay less. And this has alone occasioned great convulsions, actual civil wars, ending either in dethroning of the princes or enslaving of the people. Generally, indeed, the ruling power carries its point, and we see the revenues of princes constantly increasing, and we see that they are never satisfied, but always in want of more. The more the people are discontented with the oppression of taxes, the greater need the prince has of money to distribute among his partizans, and pay the troops that are to suppress all resistance, and enable him to plunder at pleasure. There is scarce a king in a hundred who … Read More

This morning, around forty Republican legislators have to look back at the bleary mess that was their President’s Day Weekend (and somewhere in there was Valentine’s Day, too), wondering exactly what happened to them. With the seeming speed of the flip of a switch, Republican representatives to the “Big 5” signed off on a Big 5/Big Taxes budget “deal” that would make any professional sausage maker proud.

The problem with the plan is that at its center is a massive increase in taxes (sales tax, car tax, car fee, income tax) that totals over $14,000,000,000.00 (multiply that out a few years to really see that number grow – all of those zeros, by the way, make it BILLIONS). Completely conceded in this Big 5/Big Taxes plan is the notion that Republican lawmakers were elected to office with a pledge to protect Californians from higher taxes (let alone tax hikes of this record-making magnitude). There are two underlying assumptions to this plan that are flawed – the first of which is that there is simply no way to balance the state’s books without a tax increase. The second is that there is no way to get a plan that will resolve the issue that will… Read More