Stop Hidden Taxes Initiative Submits Signatures
Most FR readers probably are not familiar with what is called the "Sinclair Paint" decision — and it would take an entire column to go into all of the details. But suffice it to say that this court ruling smashed a big hole in the taxpayer protections of Proposition 13, saying that unlike general tax increases that require a 2/3rds vote of the legislature, raising taxes for a specific program where there is some (often dubious) nexus between the tax and the program is no longer called raising taxes, it is called a "fee" — and requires only a majority vote.
For example — hypothetically — a tax of $.25 on every plastic bag in a grocery store that is sold, which then goes into "public education" about how plastic bags can damage the environment would be sold as a "fee" requiring a majority vote.
Over the years, this egregious "loophole" has been used raise vast amounts of taxes (disguised as fees) on the people of California.
The campaign to Stop Hidden Taxes today has turned in the signatures necessary to place an initiative on the November ballot that would close the loophole, and… Read More