Is California leading the way? Pray not
Dec 16th, 2009 | By Charles L. Stanley CFP® ChFC® AIF® | Category: News
It is often said that California leads the nation into various “new” things. Pray that California style legislators don’t come to your State or to the Federal Government. As a Californian and a conservative thinker, I apologize to the rest of the nation on behalf of Californians who have thrust the likes of Nancy Pelosi and Barbara Boxer on the rest of the nation.
The following is from the Howard Jarvis Taxpayers Association and does, I think, shed light on the mindset of California legislators.
T A X P A Y E R U P D A T E
From the Howard Jarvis Taxpayers Association
The Year in Review: Top 10 Worst Tax Gimmicks of 2009
Sacramento — It’s been a rough year for taxpayers in California. As 2009 comes to a close, Californians find themselves clutching their wallets more than ever.
Below, a look at the diabolical, dangerous, and downright worst Tax schemes of 2009:
#10: As part of last summer’s Budget deal, Legislators agreed to sneak an additional 10% Income Tax Withholding from Californians’ paychecks … just in time for the holidays.
#9: Claiming he could solve the State’s budget crisis with a single puff, Assemblyman Tom Ammiano introduced AB 390. He claimed the bill would close California’s budget gap to the tune of $12 to $18 billion by legalizing – then Taxing – marijuana sales.
#8: Desperate to find revenue, Governor Schwarzenegger threatened to solve the Budget crisis… one Golf course at a time. His plan to tax “greens fees, monthly dues, and golf cart rentals” got caught in the rough. Perhaps he feared a nine-iron to the rear windows of his black Suburban?
#7: Three words… Tax the Internet! (AB 178)
#6: Despite the recession and California’s record high unemployment, the Legislature manufactured its own version of Cap and Trade. AB 32 will cost Californians up to 1.1 million Jobs, place a $49,000 burden on California’s small businesses, and cost the average family $3,857 per year in increased living costs.
#5: Proving it’s a “dam shame” every time the State Legislature gets involved in solving a problem, the Legislature passed a bill to place an $11 billion Water Bond on the ballot during the worst economic downturn since The Great Depression. The bond will dole out billions of dollars in taxpayer monies, establish more government bureaucracies, and do little to address the water crisis in time to put farming communities back to work.
#4: As Californians struggled to keep their jobs and their homes, Assembly Speaker Karen Bass authorized pay increases for bureaucrats who work in the State Legislature. After the media discovered the raises, she revoked them.
#3: Still searching for more revenue, the Governor vowed to raise Taxes on beer and other alcoholic beverages… just when Californians could use a stiff drink.
#2: In February, the Legislature passed the largest state Tax increase in U.S. history, which now has California competing for the highest tax burden of all 50 states.
And the #1 Worst Tax Scheme of 2009:
#1: Proposition 1A, the massive $16 billion Tax increase — more than double the February tax increase – was placed on the ballot by the governor and Legislature, funded to the tune of $28 Million by special interests, and described as “budget reform” without the promoters once uttering the word “Tax increase.” (Their Initiative, by the way, failed by a landslide 2-to-1 margin.)
For more information on the Howard Jarvis Taxpayers Association, visit www.HJTA.org.
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It’s been said many times that California doesn’t have a revenue problem; It has a spending problem. Just like the author, I too am a conservative Californian. I love my state, but in their desperation, its legislators have indeed thought up some down right scary “solutions” to the financial problems here. I feel a little more uncomfortable here with each passing year as taxes continue to rise, regulations increase, and businesses leave for more friendly states.
There is no single solution to CA’s complex problems, but change must start on a local level. We can help by encouraging our elected officials to spend our tax dollars wisely. I live in Los Angeles County, and I’m seeing some glimmers of hope with the county Board of Supervisors. Recently, they reissued an RFP for vendor services to operate the county’s GAIN case management services (a welfare-to-work program). I expect the same two companies will submit proposals as last year – incumbent Maximus Inc. and newcomer Policy Studies Inc. (PSI).
Maximus has maintained its contract with the county for many years now, but its cost to the taxpayers keeps skyrocketing. If the new bids resemble those from last year, we can expect that the Maximus bid will cost taxpayers almost a million dollars more than PSI’s. What’s more, Maximus has a track record of poor performance. Under its latest three year contract, Maximus has been cited repeatedly for failing to meet required goals in 5 of 8 categories (according to the LA Times). Last year, the Department of Public Social Services favored PSI based on scoring done on the two companies by a neutral third party. PSI scored 9,082 out of 9,616 possible points in the procurement process, whereas Maximus scored 7,824 of 9,616. PSI won by a 13% margin on technical score and also submitted the lowest bid, which was 6% cheaper.
Even worse, Maximus has spent hundreds of thousands of dollars trying to buy the support of the Board of Supervisors through lobbying and campaign donations.
I am grateful that the BOS reissued the RFP and am confident they will select the right choice for LA. In these tough economic times, we need our local elected officials to scrutinize how every tax dollar is being spent and eliminate waste wherever possible. California doesn’t have to continue its downward spiral.