California 2016 Elections: The Year of the Tax
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By Stephen Frank
Yes, I know folks are still hung over from the November 4th election—though only 42% bothered to vote, a historically low turn out. Of course Prop. 14 suppressed the vote since in 28 legislative districts voters could choose only one Party. And, Third Parties were pretty much wiped out from the ballot. Why vote, if you do not have a choice. A very rich man from Northern California paid millions to take away basic electoral rights. He fooled the public into believing that have fewer people vote was a good thing.
How bad was it? In the 39th Assembly District in the San Fernando Valley 56% of the voters turned out in 2010—pre-Prop. 14. In 2014 22% turned out when the choices were a Democrat vs. a Democrat. In 28 legislative races there was only one political party on the ballot—like the 39th—so why should folks not allowed a candidate on the ballot bother to vote?
This lack of turnout is going to be extremely important in the General Election of 2016. One group of Sacramento Leftists is looking at putting a measure on the ballot to keep Prop. 13 protections for private homes but allow unlimited property taxation on commercial properties. That is called the “split roll” measure. If passed that will drive down the value of commercial property, causing some loans to be called in by the banks—and when unable to pay, close the door and kill jobs.
There is also going to be an effort by a billionaire that made his money in the oil business, to add a tax of up to 10% on every barrel of oil taken from California soil. Though Tom Steyer is a Californian I think Texas and North Dakota put him up to this. If enacted, the California oil industry will have an added 10% cost—while North Dakota and Texas oil will not be affected. Good deal for Texas, very bad deal for California. What is 10% of nothing? Oh, it will add to the middle class leaving the State, fewer revenues. Bottom line is this is an economic loser for Californians—but Steyer already made his billions, so he does not care.
The Los Angeles Times on November 28 reported that a coalition has formed to add a measure to raise the cigarette tax by $2 a pack. On the same ballot will be a measure to legalize marijuana—wonder if the taxes on pot will be as high as the taxes on a Marlboro? Thanks to previous tax increases on cigarettes it is reported that revenues are down by ONE BILLION DOLLARS. Guess the folks asking for the new $2 a pack tax are economic illiterates. The fact that higher taxes already in place have caused a loss of revenue should tell them another major increase will cause even more.
Yet, the programs paid for by the cigarette taxes continue to grow, while the revenues decline—general fund money is forced to pay for the ideas of those who appear to have never passed or if passed, understood an Economic 1 class.
Then you have the effort by former Democrats Senate Leader Steinberg to make the “temporary” tax of $6 billion a year for seven years permanent. Though advertised for education, the money has mostly gone to the government school pension system which is currently unsustainable—they need the money to keep the doors open and the retirement checks flowing.
Add to all of this the bond measures for parks, education, transportation and the 2016 ballot could be the most expensive in California history. The rich don’t care, they can afford it. The poor do not care; they get welfare and pay little in taxes. It is the middle class that is being squeezed and taxed out of California. Their jobs are in danger from technology, the cost of food and housing is too high to really enjoy life. Our roads are a disaster, gridlock, traffic jams and the January 1, 2015 Arnold and Jerry cap and trade tax has added a dime to a gallon on gas. For many, this was their last Christmas in California.
At what point do the people say no to those taxes demanded, so only the rich and poor live in California? Or have we already gone beyond the tipping point? If many of these measures pass, California will become a version of historic India—a two caste system—the rich and the poor. The election is 700 days away; the count down to the economic Armageddon has begun.
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Stephen Frank
Stephen Frank: Is the the publisher and editor of the California Political News and Views. Mr. Frank speaks all over California and appears as a guest on several radio shows each week. He has also served as a guest host on radio talk shows and is a full time political consultant. http://capoliticalnews.com/
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