At the request of the Senate Governance and Finance Committee, the Board of Equalization’s Research and Statistics Section today released a report showing the State of California could reap up to $122.6 billion by imposing sales and use tax on services.

The size and scope of California’s service-related industry is mind-blowingly large, and the last thing overtaxed Californians need is another tax. In fact, these numbers are dangerous in the hands of legislators who want to raise taxes.

However, I hope this report stimulates conversation about how taxes can be simpler, and how we can attract more jobs to our state.

Although I strongly oppose Senate Bill 8 (Hertzberg), which would impose a $10 billion tax increase on service industries, I am open to considering a broader sales tax if it’s part of revenue neutral tax reform, such as abolishing the Franchise Tax Board and California’s income tax, along with other taxes that destroy jobs.

I’ve called for dynamic economic modeling that would show the benefits of such a change and look forward to being able to share those results with you… Read More

There is a strange disconnect that can be noted in the definition of economic recovery promoted by many on the political left when it comes to evaluating the economic performance of Democratic executive office holders. In the case of President Obama, many Democrats are eager to observe the resurgence of the stock market and the return to pre-recession baseline revenue levels as evidence of a restored economy. More recently, as the headline unemployment rate has declined, they’ve claimed the official reduction in unemployment as a landmark of economic recovery. Yet even as progressive rhetoric stresses income equality and champions the financial plight of the poor and… Read More

California has raised its minimum wage four times over the past 13 years, with each increase outpacing the federal minimum wage. California’s current minimum wage is 138% of the federal level, and with the impending statewide increase mandated by current law in 2016, California will have the highest minimum wage in the country.

Despite clear negative impacts on both California’s economy and low income citizens, Senate Bill 3 (Leno) would mandate an additional statewide increase to $13 per hour with annual, auto-scheduled wage increases thereafter.

With another increase already teed up for January 2016, pre-programing additional increases is reckless. The weight of economic data compels the conclusion that arbitrary minimum wage increases do more harm than good. Motivated by the understandable desire to help the state’s lowest wage earners, the reality is that they reduce access to jobs for those citizens who need them most and further suppress upward mobility for those clinging to the bottom rung of the employment ladder.

To read the entire column click here… Read More

Legend has it that upon being informed that the citizens of France had no bread to eat, Marie Antoinette, Queen-consort of Louis XVI of France, exclaimed “let them eat cake.”

California Governor Jerry Brown recently had his own “let them eat cake” moment: At a press conference last week announcing the need for a 25 percent cut in water consumption, Brownsaid, “People should realize we are in a new era. The idea of your nice little green lawngetting watered every day, those days are past.”

Brown showed his “let them eat cake” character once again.

Brown-the-elite

Jerry Brown enjoys an upper-crust Bay Area lifestyle, and is dependent on the very water projects he loathes and has shut down. Brown was the original push behind canceling crucial water infrastructure projects in the 1970’s and 1980’s, and has been supportive of diverting desperately needed reservoir water for fish, rather than food production in the Central Valley.

There is no doubt California is in a drought; we’ve been in one for several years. And California has had many droughts in its history, including when Brown was… Read More

[Publisher’s Note: As part of an ongoing effort to bring original, thoughtful commentary to you here at the FlashReport, we are pleased to present this column from Asm. Travis Allen.]

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The Governor’s recent proclamation that Californians must cut water usage by 25% certainly caught the attention of Californians and pundits nation-wide. Featuring threats of fines of up to $500 per day, and even restrictions on personal shower habits, Governor Brown wasted little time getting right to class warfare over our green lawns. Unfortunately, he and the ruling Democrat party once again took a pass and resorted to draconian rationing measures and heavy handed fees, while offering no leadership and no real solutions to California’s current water crisis.

While it is true that we are in a drought, the little known fact outside Sacramento is that our water problems could be… Read More

Free education… financial aid… student loans… low-cost auto insurance… free health care… free legal aid… California may be the Golden State, but not for legal residents and citizens. California’s more than three million illegal aliens are enjoying many benefits the state’s legal residents and taxpayers do not. And it comes at a very heavy financial burden — legal residents are not just paying for their own health care, rent, transportation, food and education, they are paying for illegal aliens’ as well.

The purpose of immigration laws is to serve our raison d’État – our national interest, or the “reason of State” of the United States – our country’s economic, military, and cultural goals and objectives. Contrary to the behavior of many politicians, the U.S. does not have unlimited resources. The multitude of illegal aliens flocking to the U.S. is damaging our raison d’État.

The United States has a colossal problem with illegal aliens. But the political left doesn’t like using the word “illegal,” so after President Obama was elected, leftists renamed illegal aliens “undocumented immigrants,”… Read More

The 2015 report on economic competitiveness between states is out, and it still doesn’t look good for California. The Rich States, Poor States report by the American Legislative Exchange Council annually ranks states on economic competitiveness. For the 8th year in a row, Utah wins. And for the 8th year in a row, California ranks poorly on the economic freedom and competitiveness scale.

‘Rich States’ embrace free market reforms and cut taxes.

‘Poor States’ raise taxes on income, have high property taxes,… Read More

Current policy solutions enacted to address California’s water crisis provide an object lesson in how corruption masquerading as virtue is impoverishing the general population to enrich a handful of elites. Instead of building freeways, expanding ports, restoring bridges and aqueducts, and constructing dams, desalination plants, and power stations, California’s taxpayers are pouring tens of billions each yearinto public sector pension funds – who invest 90% of the proceeds out-of-state, and the one big construction project on the table, the $100B+ “bullet train,” fails to justify itself under virtually any credible cost/benefit analysis. Why?

The reason is because infrastructure, genuinely conceived in the public interest,lowersthe cost of living. This in-turn causes artificially inflated asset values to fall, imperiling the solvency of pension funds – something that would force them to reducebenefits. Beneficial infrastructure is also a threat to crony capitalists who don’t want a business climate that attracts competitors. Affordable land, energy, and water encourage economic growth. Crony capitalists and public sector unions alike hide… Read More