Ballot in 2016: A Taxing Proposition Column by Stephen Frank

Watch out for November 2016. The economic disaster that is the former Golden State, is possibly getting worse. Not only will the mismanaged government water polices killing hundreds of thousands of jobs, killing farms and raising the cost of food nationwide, but CalPERS and CalSTRS have become political correct in their investments—costing retiree security and a possible collapse of the systems.

In 2012 we voted for a tax increase of $6 billion a year for seven years. Besides the tax increases to vote on, there is a multi-billion dollar “education” bond—sponsored by unions, contractors and other special interests. Expect a park bond and even another fraudulent water bond—notice the lack of dams being built from the proceeds of the 2014 bond measure.

“Either making the Prop. 30 $6 billion a year tax increase permanent or creating a new tax. SB 8, which will need voter approval, wants $10 billion a year in new sales taxes. These taxes will be on services, like attorney and CPA fees, your yoga and dance class, golf lesson, plumbers and possibly even doctors. That means either $6 billion or 10 billion each year out of your pocket—for sales taxes, or general taxes.

A serious question: Can we afford California government?

Photo courtesy of secretlondon123, flickr

Stephen Frank editorial, 4/7/15

If you love taxes, you will love the November 2016 ballot. Thanks to the Democrats changing the law that except in rare instances, all Statewide ballot measures must be on the General Election ballot in November. Then you will also have numerous cities expanding the effort from 2014 to increase or extend sales taxes for the real purpose of paying off the 50% increase in mandated contributions to CalPERS, for that failing system. Remember, per Federal criteria CalPERS has an unfunded liability of $754 billion—even CalPERS admits to being just under $200 billion. None of this is sustainable.

Here are some of the Statewide Tax Measures for November, 2016:

Either making the Prop. 30 $6 billion a year tax increase permanent or creating a new tax. SB 8, which will need voter approval, wants $10 billion a year in new sales taxes. These taxes will be on services, like attorney and CPA fees, your yoga and dance class, golf lesson, plumbers and possibly even doctors. That means either $6 billion or 10 billion each year out of your pocket—for sales taxes, or general taxes.
An oil severance tax. This is a tax that is to “replenish” the oil supply. Nope, just a way to get into your wallet or purse. In this case it will be 9.9% of the value of the oil coming out of the ground. As we all know, no corporation in the history of mankind has ever paid a tax—they merely collect the tax and pass it on to the customer. So, when you buy gasoline, add the 9.9% to your costs. This is after AB 32 added ten cent a gallon of gas for your car at the beginning of the year.
There will be a ballot measure to create a two tier property tax. A Prop. 13 protected property tax for your home and a skies the limit property tax for commercial property. If passed it will lower the value of commercial property, some will have banks call in the loans, since the new value is below the loaned value—watch California spiral quickly in a tax toilet, forcing business to close, jobs to be lost and Texas and other fiscally responsible States to grow. If you want to be a Texan, this is the measure to support.

Then we will have an expanded repeat of the 2014 ballot from a few cities. In the last election local government cried they needed money for cops, libraries, roads and basic services. But when the measures were looked at, none of these were to receive the money. Instead the money went to the “general fund”. This was how cities used bait and switch to collect higher taxes for “cops” and instead used the money to help pay for the collapsing and out of control CalPERS increased mandated contributions fo 50%. When asked in city after city, no elected official or city manager would deny that was the real destination of the increases or extended taxes.

In 2016, it will be worse for the cities, so expect many more bait and switch taxes. I live in Simi Valley, in Ventura County. Our City Manager has a study that shows the city needs $1.8 million to cover the cost of the services provided by the city, like permits for development. But, the money is not going to cover those costs. The money is going to the general fund. When asked how the city was paying for its 50% CalPERS increase, no answer. Actually the “no” answer is the answer…more bait and switch. The increased “fees” (which will make Simi Valley even more expensive), is meant to help pay the over $70 million in unfunded pension liabilities faced by the city.

If the Chinese could name 2016 after a public policy instead of an animal, they would call it “The Year of the Taxes”. Be careful how you vote in 2016, it might sound good, but can we afford tens of billions in new taxes for the long haul?