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Congressman John Campbell

Tax Code Reform Survey Results

Survey Results: You haven’t heard from me in a while. No need to check the obits, I’m still here. What with 2 national conventions, a busy month home in the district, and some vacation on my part, I thought I’d give us both a little break. Not that either of us could avoid the non-stop national campaigning.

When I last wrote you, I included a survey with various proposals on what to include and not include in a potential income tax reform bill next year. The results are detailed below. But, here is my “executive summary and analysis”:

• A majority of you agreed with all of my proposals.

• The most popular proposal with you all (76.9%) was to eliminate all deductions and credits except charitable contributions, home mortgage interest and non-elective medical expenses.

• The least popular proposal, albeit still over 50% at 56.3%, was to go to only 2 tax rates, one for incomes below $100,000 and one for incomes above that amount. 27.2% of you believe that we will need more rates than that, and 15.2% of you want only one rate.

• You may recall that I had a joke answer… Read More

Katy Grimes

Steyer defends Prop. 39 to raise taxes on business

cross posted at CalWatchdog

Most of us would think that wealthy people would be more interested in sponsoring ballot initiatives to cut taxes, not to increase them. But of the three tax-increase ballot initiatives on the November ballot to significantly raise taxes, two were sponsored by very wealthy individuals, Proposition 38 by attorney Molly Munger and Proposition 39 by hedge-fund manager Tom Steyer.

The third is the Gov. Jerry Brown’s Proposition 30 tax increase.

Prop. 39 is getting noticed. But it’s is just another retread of the 2010 Proposition 24, which voters killed.

Prop. 39 would require businesses headquartered out of the state to use the “single sales factor method,” in which their tax liability is based solely on their amount of sales in the state.

They would no longer be allowed to use the other option, known as the “three-factor method,” which bases tax liability on a combination of the sales, property and number of employees a business has in the state. That option was a tax-cut part of the budget deal in 2009… Read More

Katy Grimes

Ding, dong, tax bill is dead!

The California Senate killed Assembly Speaker John Pérez’s AB 1500, which would have taxed out-of-state businesses. Ding dong, one more tax measure is dead… for now.

Perez worked like a mad man on Friday to try and nab enough Republican support for his “middle class scholarship” bill. But it wasn’t about the scholarship–it was just one more attempt to tax businesses for another type of California welfare program.

When Perez saw that he didn’t have the votes at the eleventh hour, he gave in.

Single Sales Factor

AB 1500 was a $1 billion tax increase on out-of-state businesses that create jobs, pay taxes on their property, sales and payroll receipts, and have thousands of employees in California.

As California Employers Against Higher Taxes correctly pointed out, “Proposition 24 sought to make this change in 2010, and California voters overwhelmingly rejected it by two million votes.”

Perez said that a tax loophole is costing California $1 billion per year. But it was not really a loophole: Until the 2011 tax year, corporations had been calculating income taxes using property, payroll and sales for more… Read More

Katy Grimes

Is CA about to become a sanctuary state?

Immigration issues within states are becoming more prevalent. The usual complaints are that the federal government isn’t doing enough to enforce U.S. policy.

California is different. Earlier this year, it already embarked into uncharted territories, with the state Legislature voting to allow the children of undocumented aliens to attend the state’s public universities and colleges, at estimated costs of $65 million a year in financial aid and scholarships.

California: Sanctuary State

There have been many failed attempts to pass state laws allowing undocumented immigrants to live and work in California without the constant threat of deportation. Many say that this should have sent a clear message to lawmakers. Even a ballot initiative, the California Opportunity and Prosperity Act, failed to get enough signatures to quality for the November ballot.

“But noooooo,” as John Belushi used to say on “Saturday Night Live.”

Assemblyman Felipe Fuentes, D-Sylmar, together with Senate President Pro Tem Darrell Steinberg, D-Sacramento, revived the attempt. In one of the most repugnant moves legislators can make, they gutted and… Read More

BOE Member George Runner

July Sales Tax Revenues Didn’t Plummet

Contrary to what you may have heard, the sky is not falling in California—at least not as it pertains to sales tax revenue. I’m pleased to report that sales and use tax revenues are doing just fine.

On August 13, the State Controller reported that sales and use tax general fund revenues for the month of July were down $295 million, 33.5% below expectations.

However, BOE actually received $1.527 billion in July, $17 million more than the Department of Finance budget projection.

The competing revenue numbers are the result of payment timing combined with differing accounting methods. As required by statute, the Controller looks at “money in the bank,” which does not include pending deposits. BOE numbers, as well as those used for state budget estimates, reflect “money in the door,” which includes all payments—including those received but not yet deposited.

BOE received more than $900 million in sales tax revenue in the final days of July. These dollars were not included in the Controller’s report because they had not yet been deposited into state coffers.

Retail sales tax… Read More

Katy Grimes

Legislators use muscle on grocers over plastic bag recycling

Katy Grimes: The plastic bag activists are at it again, and they are nothing, if not persistent. With the eleventh bill regulating plastic bags in less than 10 years, grocery stores don’t have a chance in California.

Passed today by the Assembly, SB 1219, the latest plastic bag regulation bill, by Sen. Lois Wolk, D-Davis, will require grocery stores to implement, manage, and report on the “At-Store Recycling Program” to the Cal Recycle state agency.

Besides imposing more rules and regulations on privately-owned grocery stores, SB 1219 which appears to be aimed at large grocers like WalMart, Target and other large supermarket chains, will require that stores “place recycling bins in a readily accessible location for consumers, assure the collected bags are recycled, and provide reusable bags. Additionally, stores track the collection, transport, and recycling of plastic carryout bags and regulated manufacturers provide educational materials to assist in recycling (see requirements).”

This could be the work of a… Read More

Katy Grimes

Air Resources Board dodges accountability – again

The California Air Resources Board seems to be on everyone’s list of what not to do in state government. Charged with implementing AB 32, the California’s Global Warming Solutions Act of 2006, CARB is under increasing scrutiny for operating as a rogue agency, appearing to be accountable to no one.

All attempts to reel in the agency have failed, including another attempt to audit its operations and finances–thanks to Democratic legislators who clearly are getting marching orders from Assembly and Senate leaders.

A Joint Legislative Audit Committee hearing on Wednesday brought CARB close to accountability with the threat of the six-month state audit. But the committee chairman, Assemblyman Ricardo Lara, D-Bell Gardens, surprised everyone when he nixed the plan after having made the pretense that he was on board.

CARB and AB 32

In 2006, the Legislature promised that AB 32 would help clean the environment while still protecting the economy. Supportive legislators promised that utility and gasoline costs would not increase with the implementation of the climate change law.

The opposite has happened, and businesses are now… Read More

BOE Member George Runner

Budget Will Be Decided by Voters

The Governor must act on the budget by midnight today. If he had the courage, he would send it back and demand the Legislature send him a fully vetted plan that is truly balanced, contains real reform and spurs job creation in our state.

The truth is that California won’t have a real budget until November. That’s when voters will decide whether to embrace or reject the billions in higher taxes the budget assumes.

Should taxes fail, the budget calls for billions in ‘trigger cuts’ to education funding. I suspect these ‘trigger cuts’ are little more than a head fake aimed at scaring overtaxed Californians into taxing themselves even more.… Read More

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