cross posted at CalWatchdog

A standard of the Republican Party platform is “no new taxes and less regulation.” But last week, at the very end of the two-year legislative session, the Legislature was faced with a bill containing a $2.3 billion car tax increase–and it had Republican votes.

Senate Bill 1455 by Sen. Christine Kehoe, D-San Diego, would extend the extra fees on vehicle registrations, boat registrations, smog surcharges, and tire sales until 2023, in order to fund environmental state programs for production, distribution, and sale of alternative fuels, green vehicle technologies, and carbon emissions reduction plans.

Billed as an environmentally-friendly bill, SB 1455 was gutted-and-amended, the tax increase surprisingly materialized only last week, and the bill received only one policy hearing. The Howard Jarvis Taxpayers Association warned, “the regulatory relief can be altered in the future by a majority vote, while this tax extension against vehicle owners will last another… Read More

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

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: 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

BURBANK — The California Republican Party convention is taking place this weekend in Burbank, CA. While there have been guffaws and snickers about the relevance of the Caalifornia Republicans, the party made significant gains in the June primary, but this was largely ignored by most of the California media.

The convention agenda is not packed as full as previous meetings given that many politicians are campaigning for November races, but there is still plenty of red meat being offered.

Repeal Obamacare

A forum on “The Future of Health Care” was an excellent panel presentation to a packed room. Health care insiders presented facts about the impacts of Obamacare, and John Eastman discussed Obamacare following the recent Supreme Court decision.

Eastman, an attorney, Professor and Dean at Chapman Law School, and former candidate for State Attorney General, asked audience members, “What happened on June 28, who did it, and why?”

“There was this little case up at the Supreme Court,” Eastman said. “28 states sued the federal government. Eastman said that liberals predicted case wouldn’t even get to Supreme Court.… Read More

*NOTE: SPECIAL SURVEY EDITION. This week’s edition includes an interactive survey. After you finish reading, please make sure to assess my plan and tell me what you think!

Taxes: Taxes are always a big issue in politics and public policy. However, right now there is a crescendo of agreement building in Washington that it’s time to make some fundamental change to our tax system.

The debate in Washington of late has been confined to the so-called Bush tax cuts, all of which are scheduled to expire at the end of this year. Essentially, should we extend all of them, none of them, or some of them? The erudite readers of these missives (that’s you) have heard all of this before and know the arguments for and against the extension and all about taxing the “rich” and such. So, I won’t repeat them here. Economists are unified in their predictions of recession if we are allowed to go over the “fiscal cliff” on December 31 and allow all of the tax cuts to expire and the sequestered spending cuts… Read More

Stephanopoulos: But you reject that it’s a tax increase?

Obama: I absolutely reject that notion…….

Stephanopoulos:……That may be true, but it’s still a tax increase.

Obama: No, that’s not true, George.

-Excerpts from an exchange between President Obama and George Stephanopouls in 2009. For the entire clip of the exchange, click HERE.

Obamacare: I am old enough to remember Harry Truman. No, not President Harry Truman. I am not quite that old! I mean the stubborn individualist who lived in Washington State at the base of Mount St. Helens when that volcano erupted in 1980. That Harry Truman refused repeated attempts by government authorities to evacuate him from the base of the mountain he loved. He was never seen again after the eruption and is presumed to have been buried in a deep lava flow. So, what does… Read More

I’m really trying. But I just can’t keep up with dumb ideas from the other party.

On the campaign trail, I’ve told the story of a meeting last year with some plaintiffs’ lawyers who specialize in employment law. I mentioned the idiotic and counterproductive Labor Code requirement that bars ten hour work days, even if the employee wants them. In a flight of what I thought was hyperbole, I added that Democrats act as if, without that law, “there would be 12 year old urchins in basements sewing garments again.”

“Oh, no, Mr. Wagner,” one of the lawyers earnestly replied, “that’s exactly what would happen.”

What I took as an obvious exaggeration, she took as a very good argument for a very bad law.

A couple of weeks ago, Democrats on the Assembly Education Committee complained about the narrow scope of a bill by State Senator Bob Huff. They objected to it because it didn’t completely fix a big problem (ironically, a big problem of Democrats’ own making with faulty legislation they passed a few years ago – but I digress). Instead, the bill dealt only with a small piece of the larger problem, and supposedly was objectionable for… Read More