This is not the first time the Democrats have tried to raise taxes on a majority vote, and, guess what, on most occasions in the past they have been successful in their efforts.

Let’s start with Sinclair Paint. In that case, the Supreme Court authorized the passage of an assessment on all paint manufacturers for child health programs on a majority vote. The bill received no Republican votes, yet the tax was passed and collected, challenged in court, and the tax was legitimized by Ron George and the California Supremes. The Court’s reasoning was this: Paint manufacturers put lead in the paint 50 years ago, lead paint affected the health of some children, therefore a fee on paint manufacturers (even if those manufacturers did not make lead paint) for all children’s health programs (even if those health issues are not related to lead-based paint health problems) is a fee, not a tax, because it is assessed to remedy a problem created by the people upon whom the fee is assessed. Using this logic, quite frankly, almost any tax could be justified as a fee.

Another example–the so-called revenue neutrality rule adopted by the Legislative… Read More

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

So California can’t sell its bonds because the outside world has no confidence in our leadership’s ability to manage the state’s finances. And now public works projects are shutting down—projects that the public approved at the governor’s urging. If only he had shown as much leadership throughout his tenure in fighting for budget reform. Instead, when that issue wasn’t an easy win and didn’t come with accolades from the Democrats and the media, he shifted his attention to global warming. For once, a politician’s chickens are coming to roost when he is still in office. I’m glad that the Schwarzenegger is having to deal with this mess. He could have avoided it—or at least the deficit wouldn’t be this big and his options would be better—if he had stayed true to his word when he first ran for office and shepherded through real budget reform early on.

… Read More

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

One important step in solving the state’s budget crisis is to eliminate wasteful resources and look for potential opportunities to create new revenue without raising taxes.

One significant opportunity is to sell the 432 acres of pristine California land that houses San Quentin State Prison. This state property sits on a prime bay front section of Marin County and has the potential to provide the state with substantial revenue.

**There is more –… Read More

A reminder that once a year, the elves here at the FlashReport take our annual vacation. Every year, the FlashReport publishes daily through the Friday before Christmas, and we restart our daily routine on January 2. For those looking at a calendar, that means that this Friday will be the last time our main page is updated for the year. This is traditionally a very slow time for political news.

That said, this particular year, because of the chaos caused by the chronic overspending of legislative Democrats, and the resulting budget mess, we will be keeping the FR blog open through the holidays, and will encourage our readers to check in regularly (normally we would shut that down, too!).

When we come back after the holidays, look for one new major feature on the site, and we’ll also be revamping our blogger row, with some new, awesome contributors joining our blog team.

As always, if you have any thoughts or suggestions about how we can improve FR, please share them with us. You can e-mail me here.… Read More

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…