Did you know that less than $5 billion of the proposed cuts in the Big 5/Big Taxes budget represent government programs getting less money than they got last year? So it might be fair to say that for every $1 of a REAL reduction in the level of funding of an existing program, taxpayers are paying an additional $3. That doesn’t make a whole lot of sense, and this is a terrible deal for California taxpayers.… Read More

As the "O" word in thetitle I used above becomes more and more prevalent in the media as the "BattleO’ The Cap’tol" drags thru the "Presidents Day" holidayfrom the Valentines Day one, the Republicans, laboring in the minority, getbranded once again with "stopping progress". I say they’re only being consistent in the belief system that they haveheld all aong.

Most Republicans have opposed very openly, oftenand in plain English, the expansion of government that has put us in the fiscal wreck we are in. It’s in our party plank, plain as day. More importantly it’s in the minds of Republicans that run for office.A frequentdifference found between the legislators of the respective parties is thatmost of the Republicans have been in business. They have actually lived in the world of those that are regulated to the brink by all the fine ideas that come from Sacramento and DC regulators via laws Democrat legislators pass, almost always with no, or a tiny handful of Republican votes.

Before a law like AB 32, Carbon Dioxide Greenhouse Gas regs pass, you heard from our… Read More

It’s one thing to see Senator Abel Maldonado’s name on an electronic list published by Americans for Tax Reform. It’s actually more "real" to see the actual form that the Senator signed, of his own free will, making a pledge to his future constituents that, if elected, he would oppose tax increases and oppose efforts to raise taxes.

Attached is a .pdf of Senator Maldonado’s pledge form, which I asked the folks at ATR to fax to me.… Read More

This morning, around forty Republican legislators have to look back at the bleary mess that was their President’s Day Weekend (and somewhere in there was Valentine’s Day, too), wondering exactly what happened to them. With the seeming speed of the flip of a switch, Republican representatives to the “Big 5” signed off on a Big 5/Big Taxes budget “deal” that would make any professional sausage maker proud.

The problem with the plan is that at its center is a massive increase in taxes (sales tax, car tax, car fee, income tax) that totals over $14,000,000,000.00 (multiply that out a few years to really see that number grow – all of those zeros, by the way, make it BILLIONS). Completely conceded in this Big 5/Big Taxes plan is the notion that Republican lawmakers were elected to office with a pledge to protect Californians from higher taxes (let alone tax hikes of this record-making magnitude). There are two underlying assumptions to this plan that are flawed – the first of which is that there is simply no way to balance the state’s books without a tax increase. The second… Read More

This morning, around forty Republican legislators have to look back at the bleary mess that was their President’s Day Weekend (and somewhere in there was Valentine’s Day, too), wondering exactly what happened to them. With the seeming speed of the flip of a switch, Republican representatives to the “Big 5” signed off on a Big 5/Big Taxes budget “deal” that would make any professional sausage maker proud.

The problem with the plan is that at its center is a massive increase in taxes (sales tax, car tax, car fee, income tax) that totals over $14,000,000,000.00 (multiply that out a few years to really see that number grow – all of those zeros, by the way, make it BILLIONS). Completely conceded in this Big 5/Big Taxes plan is the notion that Republican lawmakers were elected to office with a pledge to protect Californians from higher taxes (let alone tax hikes of this record-making magnitude). There are two underlying assumptions to this plan that are flawed – the first of which is that there is simply no way to balance the state’s books without a tax increase. The second is that there is no way to get a plan that will resolve the issue that will… Read More

With the State Senate adjourning for the night, a $14.4-billion package of outrageous tax hikes remains precariously close to passage. This got me thinking about how good a thing it is that California doesn’t have certain tools the federal government has.

Things like simple-majority legislative approval for tax increases, or its own currency. With control of money supply, the feds are currently preparing to try to spend our way out of a recession with money they don’t have. Of course California has tried that, in a way, by borrowing just to get by. This has resulted in postponing structural reforms to the point that California’s tainted credit will limit further borrowing.

So what other options does California have? Well, there’s tax increases, which are only an option when approved by the voters or two-thirds of the Legislature. Yet even the federal government realizes that increasing taxes can have destructive effects on a weakened economy.

The other tool California government still has is budgetary and governance reform. If state leaders had the will – inspired by the threat of bankruptcy perhaps – they could fundamentally… Read More

Don’t know for sure what is happening right now, but word is the Dems are asking for reconsideration on everything. They may be pulling off the deal, or it may just be the procedural requirement to adopt the new deal language, I don’t know yet, but I am sure we will find out soon.

As for the comments of Mike Der Manouel, I understand Assemblyman Villines concern. It is extraordinarily difficult to be a Republican Leader under these circumstances. I feel for both Cogdill and Villines, both of whom I like and respect. This deal, however, is a game of chicken. The two cars are racing toward each other, and the winner will be the one with the most nerves. The Dems will not let the state go bankrupt, they can’t. Their constituency groups cannot afford what will happen if all the union contracts are reopened, and deals negotiated. The Dems have a lot more to lose than the Reps if things go bad.

That being said, no one is reinforcing the "stand tough" stance for those leaders. They are walking into this gunfight (to mix my metaphors) with a sling shot. Even Republican budget staff is saying they have no choice but to raise… Read More

I’ve only been able to talk to Villines staffers and they tell me that his about face on the tax issue is directly related to a fear of the State going bankrupt. He is said to have a "moral conviction" against this happening.

Obviously, this is a very big miscalculation on his part. Whatever "reforms" there are in this budget will be short lived, the taxes won’t, and bankruptcy, at this stage is the best possible option and the only way the State gets its obligations and spending under control.

I would, if given the opportunity, strenously argue that bankruptcy is the only true moral option at the point, as it will in fact save the State in the long term.

This whole thing is sickening. I can’t believe we are being played ……. AGAIN.… Read More