Prior to the passage of Proposition 26 last year, because of a court decision, many revenue streams approved by the legislature that you or I would call a tax, were instead called a “fees” (when there is a nexus between where the revenues are coming from, and what that money is being spent on). Using the nexus “loophole” a great number of taxes were passed, as under this scheme, a “fee” only required a simple majority vote, not the two-thirds vote required for a tax increase. Proposition 26 slammed shut this loophole, and so all taxes are actually considered taxes, and take a two-thirds vote of the legislature to enact.

Enter into the picture Assembly Bill 291, authored by liberal Democrat Assemblyman Wieckowski. This legislation has to do with a tax that hits primarily gas station owners – where every owner of an underground petroleum storage tank is required to pay a per-gallon fee that goes into an Underground Storage Tank Cleanup Trust Fund. While it is a bit complicated to go through the formula for computing the current per-gallon… Read More

I just read over on the Sacramento Bee website that apparently State Senate President Darrell Steinberg is talking about moving forward with some sort of “pension reform” proposal from the Democrats. Given that Capitol Democrats are a wholly owned subsidiary of the state’s public employee unions, it’s no wonder that the provisions thrown out by Steinberg address some egregious problems with the current system (spiking, etc) — but there is no “meat on the bones” in terms of the legislature substantially reducing the amount of money that goes to new employees, and he is rather unequivocal that he will support no proposal to reduce future year benefits of current state employees.

It is so clear that the agenda of Steinberg and his liberal colleagues is to try to pass “window dressing” faux reforms to try and convince California voters that the pension issue has been dealt with — when in reality the unfordable defined benefit pensions will continue unabated.

If you really want to reform the retirement system for California ands its political subdivisions, you need to do two things. The first is work… Read More

Happy New Year!

Yes, it’s not January, but when the clock struck midnight on July 1 the state began the new fiscal year. That’s why so much has been said of late about the state budget; for the first time in a long time, the legislature actually has a budget in place by the start of the new budget year.

It was not a pretty thing getting here, and the budget is not a pretty thing to see.

First, the good news: Gov. Brown and the legislative Democrats finally agreed with Republicans about burdensome new taxes being unnecessary. Republicans have long counseled against the governor’s proposed almost $60 billion in new taxes because those taxes would have been a significant burden on hardworking families and a drag on our economy. The governor’s tax plan was precisely the wrong thing to do in the middle of a very fragile recovery. In addition, the tax plan would not have solved the state’s long term problems, as the governor’s budget did not even pretend to put those increased and burdensome taxes towards debt reduction or other worthwhile things. Instead, the taxes were actually just to fund a 27 percent increase in state… Read More

Ever since last week’s vote on the state budget, I have seen Democrats and many friends in the Main Stream Media (especially columnists and opinion-page writers) working overtime to diminish the substantive public policy victory achieved by Republicans as they withheld the votes that would have been required to raise California’s income, sales and car taxes. Because of the unity of Republicans on behalf of California taxpayers, who are amongst the highest taxed in the nation, billions of dollars in taxes that were billed as “temporary” have now ended. Because of Republicans, and despite Democrats, working Californians will now get to keep more of their hard-earned dollars to help balance their very stretched family or individual budgets. Because Republicans stuck together, the plans of Governor Brown and legislative Democrats to hit Californians with nearly $60 billion in higher taxes over the next four years have been foiled. This, by any measure, is a victory plain and simple. Especially in a town where the pressures to… Read More

There are those on this earth who never change their minds. Then there are the intelligent ones who, though having committed themselves to a position, listen, learn, and act on the new information provided.

The old saying is that a foolish consistency is the hobgoblin of a small mind. I saw the video of my speech on the national popular vote proposal from five years ago. Before that speech was given by me, no one had spoken to me, (either in favor or against) about the idea. It was a great speech, even though it was made with with partial information. Today, I would make a new speech to replace it, as eloquent, and in favor of the idea, now that I have all the information.

Over the years, I have changed my mind on several issues. I have changed my mind on term limits. I started out thinking they were a good thing. Now that I have seen their full force and effect, I think they are a horrible idea, that has cemented the power of the unions, legislative staff, and the bureaucracy. I changed my mind on the two thirds vote requirement for budgets. When I came to the conclusion it hurt Republicans, based on the evidence before me, I changed my mind.

Five years… Read More

Over the last couple weeks the usual tax and spend pundits questioned if Republicans were relevant in the recent budget debate. As usual they had the answer wrong. Not only were they relevant, they helped stimulate the economy.

Last week, my wife informed me that for a week in July, our family will be camping for a week a few miles from our home with other members of our church. We would sleep and eat at the camp site and people (like me) that needed to go to work could. Apparently pretending to be homeless for six days and five glorious nights in the summer heat near perfectly good showers, beds and air conditioning will bond us together spiritually. I am sure it will for the survivors. That said, I had orders to go get a new tent and an additional sleeping bag.

Knowing that Republicans had stood strong against Democrats trying to get a “bridge” tax increase extension, I waited until July 1. I bought the tent and sleeping bag and saved a total of $1.24 on the 1% reduction in sales tax that occurred at midnight June 30. In addition I bought the gear near work and not in Los Angeles County which saved me another $1.24 in sales tax. Los Angeles County is 1%… Read More

Today on July 4th, a great statue of Ronald Reagan was unveiled in London outside the U.S. Embassy on Grosvenor Square. Reagan joins other Presidents, Dwight David Eisenhower and Franklin Roosevelt, in memorials on the square. I was glad to have an opportunity to be at the unveiling, and see the start of this fitting memorial on Independence Day, to honor a President who saw the value of keeping U.S. troops in Europe and building up defense forces to the ultimate defeat of Communism in the Cold War. Funding was provided by the Reagan Foundation in Simi Valley.… Read More

A great Independence Day guest column from longtime FR friend Michael Ferrall…

THE MEANING OF THE 4Th OF JULY By Michael Ferrall Ph.D.

As we celebrate the 4th of July with fireworks, backyard picnics or a day at the beach, it is also important to re-examine the meaning and the effects of what began on July 4th 1776 and why we celebrate this day.

Yes, the 4th of July represents a historical celebration of the colonial citizen’s revolt against rule by the English monarchy; and, a celebration of the “founding” of the United States by the subsequent drafting and implementation of the U.S. Constitution and the Bill of Rights.

Indeed these were profound events. But they represent an even more fundamental evolution of the nature of human society; namely, the evolution of Western Civilization and the rise of “Classical Liberalism.” (Not to be confused with modern, or current, “liberalism”).

The Declaration of Independence, the revolution itself, the Constitution, the Bill of Rights and the creation of the United States represents a momentous historical shift in… Read More