Yesterday the Governor announced the twelve person membership of a special state task force that is being charged with reviewing the way that the tax system works in California, with the idea of recommending an overhaul to try and move away from the current volatile system where tax revenues are very mercurial, shooting up and down depending on external factors.
We’ll be writing more next week about this Commission, but FR reached out to one of California’s leading tax policy experts, Jon Coupal of the Howard Jarvis Taxpayers Association, for his reaction to the formal formation of the panel.
Perhaps in another time, and another place, I would be more sanguine about the formation of a commission to review California’s broken tax structure. But if there were ever a reason to be skeptical, it is on full display in the manner in which the current budget negotiations have completely fallen apart. Can this same cast of characters actually take visionary action to reform our revenue system? I suppose it is possible – just like it is possible that Pee Wee Herman could master astrophysics.There is broad agreement that California’s tax structure leaves us exposed to wild fluctuations in revenue. A progressive income tax structure, high marginal rates and, with a greater portion of the economy driven by consumer spending, increasing reliance on sales tax revenue.Our caution regarding this commission is based, first and foremost, on the fact that all twelve members have been appointed by politicians (the Governor, Senate Pro Tem and Assembly Speaker) who are actively advocating for higher taxes.Yesterday, the appointments were announced and taxpayer cynicism remains. No doubt, there are a couple of good names on this list, like John Cogan of the Hoover Institute and Curt Pringle, but I see neither an overwhelming display of taxpayer expertise or an institution that, as a whole, will have the taxpayers’ best interests in mind.Ultimately, the proof will be in the final recommendations. The test for taxpayers will be whether the recommendations result in an equitable, balanced and revenue neutral proposal – with the last element being as important – if not more so – than the first two.Does any serious observer of California politics doubt that the final product of the commission, while being labeled as revenue neutral, will actually be so? Don’t bet the farm.
This entry was posted
on Friday, December 12th, 2008 at 12:00 am and is filed under Blog Posts.
December 12th, 2008 at 12:00 am
It looks like the revenuers will get a 2/3 vote to raise taxes from this commission.
December 12th, 2008 at 12:00 am
I share your skepticism, but any casual observer (politician or not) can see that we have several problems: our spending is larger than our revenue; the housing market has cratered; we are in a period of economic retraction (recession); unemployemnt is rising; AB32 will bring a new round of regulator burden.
How can anyone look at that entire set of problems and say, “It’s time to raise taxes”?
If our only problem was that the budget was out of balance, I could understand those who call for a tax increase. I would not agree, but I would at least understand.
Raising taxes with all of these other more pressing problems is unbelievable to me.
December 12th, 2008 at 12:00 am
Flash Report Junkies…..wake up…you gotta do more than READ and THINK….it is time for action, phone calls, letters, demonstrations at state offices….they are going for Prop 13. to ravage commercial property owners and residential income property owners will face the same fate….2% valuation for taxes…..another little nuance to worry about is the real estate transfer tax…like 1% when you sell your property goes to the local county or city….commercial property owners have threatened to install parking meters or parking revenue mechanisms in their parking lots….passing the cost on to shoppers and landlords will surely charge renters immediately for outrageous increases in property taxes….who wins….I know who looses….the general public will loose. Where does this money end up….in union benefits, overtime, waste, waste and more waste making the ruling class…the bloated uncaring government workers more and more powerful….if you love California you will join the call of proactive positive action against this commission of Commissars, socalists and RED UTOPIA dreamers…