Ding dong! Could CARB be dead?

The Pacific Legal Foundation filed a lawsuit yesterday against the California Air Resources Board challenging California’s cap and trade regulation.

The cap and trade program was created by CARB ostensibly as part of AB 32, California’s Global Warming Solutions Act of 2006.

“The regulation creates a quarterly auction program requiring many California employers to bid significant amounts of money for the privilege of continuing to emit carbon dioxide — or be faced with closing their doors in California, laying off their employees, and moving their businesses to other states,” the PLF explained in a press statement.

The PLF said the lawsuit challenges the auction process “as an unconstitutional state tax because it was not enacted by two-thirds majorities in both chambers of the Legislature, as required for new taxes by the California Constitution (Proposition 13 and Proposition 26).”

“The California Constitution is crystal clear that new state taxes require at least two-thirds approval… Read More

One of the greatest comedies of all time is the film Groundhog Day, starring Bill Murray who plays TV weatherman Phil Conners, sent to Punxsutawney, Pennsylvania to see whether the groundhog comes out and sees his own shadow or not. In the movie, Conners keeps reliving February 1st over and over again. If you haven’t seen the movie, I strongly encourage you to check it out. Hillarious.

As I write (yet) another column about (yet) another effort by liberals in the California State Legislature to ban plastic bags at grocery and retail stores, it kind of reminds me of the Groundhog Day movie. It’s a new legislative session, and yet… Read More

Morton Blackwell, a long time leader of the conservative movement, observes that “the winner of a political contest, over time, is determined by the number and the effectiveness of the activists and leaders on each side.”

It is for this reason that the California Republican Party needs a strong California Republican Assembly.

During my decade on the Board of the California Republican Party I saw the CRA shrink from a dominant political force within the party to a shadow of its former self. Nature abhors a vacuum, and others who are less concerned about ideas moved in and filled the void.

There are some within the party who are no doubt cheering the CRA’s diminished numbers and influence. These are the people who think the party is bogged down by conservative activists, and if it could only free itself of these troglodytes, it would ascend to power.

This is a fantasy.

Every Republican candidate depends upon volunteers to contact, persuade, and mobilize voters. And those volunteers are overwhelmingly motivated by their commitment to ideas: lower taxes, limited… Read More

Professor Barnhardt: “So it was only when your world was threatened with destruction that you became what you are now?”Klaatu: “Yes.”Professor Barnhardt: “Well that’s where we are. You say we’re on the brink of destruction and you’re right. But it’s only on the brink that people find the will to change. Only at the precipice do we evolve.” -The Day the Earth Stood Still, 2008

One might paraphrase Professor Barnhardt’s plea, excerpted from the 2008 movie potboiler “The Day the Earth Stood Still,” to suggest that pension plans will evolve once it is clear to a sufficient number of participants that they are truly on the precipice.

In the private sector, where fewer laws shield employers and their workers from financial reality, evolution is well under way. And what has emerged is is a mutation of the Defined Benefit Plan that preserves many of its virtues, while avoiding most of the financial risks. Being pioneered by the east coast actuarial consulting firm,Cheiron, Adjustable Pension Plans can be structured in various ways, but all of them share certain… Read More

Better late than never, California lawmakers seem to be waking up to the reality that the illegal “Fire Prevention Fee” they enacted nearly two years ago is a complete fiasco. Even so, they are refusing to repeal it. Instead they are scheming up ways to replace the tax with yet another tax that’s even bigger than the first.

Where else but Sacramento would someone think the answer to a bad tax is to replace it with one even worse?

Assemblyman Wes Chesbro, who represents many rural taxpayers on California’s North Coast, is leading the charge to reinvent and expand the fire fee. His proposal (AB 468) would replace the fire fee with a 4.8 percent “surcharge” on all insured homeowners and businesses in the State of California, regardless of location.

A similar concept was proposed by Governor Schwarzenegger in 2009 but was rejected by the Legislature.

These payments, averaging $48 per policy and totaling an estimated $480 million per year, would find their way to a “Disaster Management, Preparedness, and Assistance Fund.” The fund would benefit bureaucracies, like Cal Fire, that are involved in the state’s disaster preparedness… Read More

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Sacramento Mayor Kevin Johnson has fallen out of touch with the economic interests and responsibilities of taxpayers and current NBA players. The impending relocation of the of the Sacramento Kings to Seattle led to the former professional basketball player to assist in the drafting of a new arena proposal in hopes of keeping the team in within the Golden State. Unfortunately, the proposal calls for the city to contribute $258 million in taxpayer dollars that they essentially do not have. Not only does Sacramento not have the money, but taxpayers voted against a similar proposal just a few short years ago.

Mayor Johnson is desperately trying to keep the Kings in California despite the fact that the city’s taxpayers don’t want to spend public funds to finance a vacuum project and the players are susceptible to the highest tax rates in the U.S. And that’s all before paying “jock taxes” on income earned for away-games and other various expenses.

As a former three time NBA All-Star, one would think Mayor Johnson would better understand the tax burden… Read More

When I happily endorsed my friend of a quarter-century, Celeste Greig, for re-election as President of the California Republican Assembly I told her that I would pen something for her here on the FlashReport. On more than one occasion I have sat down in front of my computer to do just that. But each time I have found that writing an endorsement column for Celeste is not as easy as I would like. No, not because of reservations about Celeste. Celeste is a great person, a good leader for the CRA, and you’ll read more about my thoughts about Celeste below. This piece has been difficult to write because you cannot really talk about a candidate for CRA President without a candid discussion about the state of the CRA today.

… Read More

It is fitting that on Tax Day, April 15th, those who seek to destroy Proposition 13 have now revealed their intentions.

We already knew about all the bills currently pending in the California Legislature that would weaken Proposition 13, either by lowering the two-thirds vote for most local taxes or by taking away Proposition 13’s protections for business owners. Businesses – large and small – have benefited in the same manner as homeowners from the modest tax rates and the certainty Prop 13 provides.

The “conventional wisdom” in Sacramento has been that attacks on Proposition 13 shouldn’t be taken too seriously because even most Democrats know that direct attacks would be overreaching. But in this case, “conventional wisdom” possesses neither convention nor wisdom.

The fact is that the attacks are coming and they are coming soon.

In the Senate, there are several proposed constitutional amendments to lower the two thirds vote for special taxes which would make it far too easy for local governments to impose a plethora of “parcel taxes.”

A problem for the tax and spend lobby is that the polls suggest that these… Read More