Speaker Grinch hauled all of the State Assemblymembers down to the floor yesterday for a 6+ hour waste of time session. During their lengthy stay in the legislative chambers, care to guess what was achieved? The Democrats put up BILLIONS of dollars in tax increases for a vote — and only Democrats supported them. I am VERY PLEASED to convey to FR readers that 100% of Assembly Republicans voted against their blatant attempt to punish California’s taxpayers for their spending addiction.

Once again, Democrats put up these tax increases without putting up the votes for a permanent spending cap (you know, in order to make sure that the chronic overspending must come to a halt), nor any of the other major reforms in state law that would improve our state’s business climate, to stimulate growth in the economy.

I guess later today the GOP proposal will get a vote on the Assembly Floor, where we can predict that all of the Republicans will support it (I would hope so!) and all of the Democrats will oppose it.

And in the "upper" chamber, there is a disturbing rumor that they have concocted some scheme to increase taxes by calling… Read More

From what I have been told, today the State Legislature will take up a Democrat-only drafted budget "fix" that includes BILLIONS in tax increases, and they will do so using trickery that will require only a majority vote for passage. As I mentioned in an earlier post, there is a current court ruling that says that the State Constitution’s requirement for a 2/3 vote for a tax increase does not apply to what bureaucrats call a fee.

You and I as lay persons would think of a fee as like what you pay to go into a state park. Okay, fine, so increasing a fee for services received by someone going into a park takes a majority vote? Right. But this idea of differentiating a "fee" from a "tax" has been taking to extreme and massive levels by Sacramento liberals. For example, what you and I call the car tax — that you pay annually when you register your car — they would call a fee. They would argue that the funds from your "car fee" go to provide services with a nexus to your driving (roads, etc). And they then make the case that this fee requires only a majority, not a 2/3 vote.

Apparently the… Read More

In response to Jennifer Nelson’s post below, the Governor’s office has responded. Below is a brief commentary from David Crane, Special Advisor to Governor Schwarzenegger on Jobs and the Economy…

FR readers HAVE to check out the details on how Democrats plan on raising income taxes, the car tax, gas taxes and more — without a 2/3 vote.

This is sick.

I’ve been intently looking for a statement from our Republican Governor announcing that such an end-run against the spirit of the 2/3 vote for new taxes would be DOA. Still waiting..… Read More

This was published in today’s edition of Investor’s Business Daily. It outlines a few of my thoughtsand ideason the path towardsrestructuring our financial regulatory system.

Bold Changes Should Prevent Another CrisisBy REP. JOHN CAMPBELL

The credit markets continue to unfreeze. The general economy continues to sink. There are new stock market lows and unemployment highs and we don’t know where and how it will all end.

But it will end. And we need to start thinking about what regulatory structure will replace the one that failed us so miserably this time. We came perilously close to an abyss (or collapse or Armageddon, depending on who is describing it).

I looked down into that abyss and what I saw was way scarier than any Stephen King movie. Therefore, I think we need dramatic changes to ensure that this sort of calamity does not befall us again.… Read More

Despite what you are hearing in the news these days, taxpayers are not to blame for California’s recurring budget crisis. Trust me on this one.

Overspending is built into our state’s budget system and the Democrats have long insisted that Republicans in the Legislature are simply obstructionists blocking the passage of state budgets filled with spending increases. They argue that if the two-thirds vote requirement was abolished, California would have on-time and fully-funded budgets. Even Governor Schwarzenegger has suggested that he might support eliminating the two-thirds vote requirement for passing a budget bill.

The voters of California reaffirmed their strong support of the two-thirds threshold by rejecting Proposition 56 in March of 2004 by a resounding 66% to 34%.

Well, we have learned that in California politics, if at first you do not succeed, just rig the system to get what you want—that is exactly what the Democrats are trying to do with their budget proposal. They have devised and schemed up a proposals that rob or eliminate voter-supported initiatives—such as Proposition 42 funds for transportation projects—and added fees on the… Read More

Today I am pleased to offer this guest editorial from longtime FR friend State Senator Jeff Denham…

Last week, Assembly Speaker Karen Bass threatened that shemay very well "lock down" the California State Assembly next week, for the Christmas Holiday. In legislative parlance, a lock down is when the members of the Assembly are literally forced to stay in the Legislative Chamber and not allowed to leave. I know, it sounds very immature, but it is true. I guess Bass’ theory is that Republican resolve to not punish California taxpayers in response to the chronic overspending of the Speaker’s party is so fragile that the threat of missing church for Christmas mass, or missing a chance to sip eggnog, or not being able to watch their kids open presents under the family tree will cause some GOPers to suddenly embrace billions of dollars in devastating tax increase.

Below is a marquis that one of our loyal readers put together that really captures the essence of Speaker Bass and this very stupid idea.

You’re a mean one, Speaker Bass!!

Care to read comments, or make your own about today’s… Read More