October 29, 2010
WSJ: California's Two Tax Initiatives Would Cripple the StateWall Street Journal editorial, The Tax Me More State: Two Initiatives That Would Further Punish California:
The Tax Foundation announced this week that California has the second worst business tax climate of the 50 states, with only New York more hostile to employers. Congratulations, but it gets worse. If a pair of ballot measures pass next week, the Golden State could soon take the tax lead and make even Albany look like Hong Kong.
Proposition 24 would raise $1.3 billion of new taxes on businesses, while Proposition 25 would allow the state legislature to pass budgets and tax increases with a simple majority vote, instead of the current mandated two-thirds supermajority.
The most pernicious is Proposition 25, which is being sold as a good government measure to end the state's annual fiscal follies and pass a budget on time. But what matters more than how a budget passes is what's in it. And the two-thirds rule that has prevailed since the passage of Proposition 13 in 1978 has been the lone restraint on the government unions and their political valets who have spent California to the brink of insolvency. ...
Both propositions are leading in the polls, which suggests that a majority of state residents are already smoking the marijuana whose legalization is also on the Tuesday ballot. If they pass, voters might as well legalize drugs because they're going to need something to ease their pain.
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The really sad thing is that 99% of CA voters have no idea what they're voting for! Regular people understanding NOL carrybacks and single-factor sales tax apportionment???
Posted by: MochaLite | Oct 31, 2010 5:23:58 PM
Fiscal Responsibility - California wants more public services + pensions costs. The only way to do that and pay off their existing deficit is raising taxes across the board, which are already high to begin with. I am glad that I don't live in California.
Posted by: Brooks | Nov 1, 2010 12:43:17 PM