Now is the time for commonsense tax reform

TaxesThe world has changed dramatically in the last 30 years. The Internet allows anyone in the world to connect with the click of a button; we’ve achieved great medical advances, economic growth in California, and locally, the population of Stanislaus County has almost doubled.

But one thing that has stayed the same through all of it is the U.S. tax code. Passed in 1986, the behemoth 75,000 page and 2.4 million-words document remains much the same. While there have been some patchwork fixes over the years, the core problems remain.

But it doesn’t have to be that way. With Republicans controlling both Congress and the White House, the political and legislative environment is ripe for reform. House Republicans have released the most prominent tax reform plan to date. Supported by Speaker of the House Paul Ryan and Ways and Means Committee Chairman Kevin Brady, the “Better Way” tax reform plan is a good start toward modernizing the tax code.

After hearing promise after promise on the campaign trail, it is refreshing to see political leaders in Washington step up to the plate and present a plan that would reform the individual tax code, broaden the tax base and simplify the entire code. If implemented, the House Republicans’ plan would increase the size of the economy, boost wages, and result in more full-time jobs.

As Vice Chair of the Californian Republican Party and Supervisor in Stanislaus County, I constantly hear remarks from Californians about the outdated, overly complex tax code. And I feel the same frustrations myself. Whether it’s personal stories or complaints about the high combined state and federal tax rate, the message is the same – the current tax code is outdated and isn’t working for America. In order to modernize it, we need to make the system fair, simple and efficient.

Californians want a new tax code that is pro-growth and that allows them to provide for themselves and their families. There are thousands of small businesses in California who spend countless hours and valuable resources to comply with the tax code when they would rather spend that time and money growing their business and creating more jobs. This important demographic of our economy is being left behind while big business exploits and benefits from our tax system’s loopholes.

Californians want a system that is fair and simple. They don’t just want fewer headaches come April 15th; they want to be able to see and understand where their hard-earned money is going and that everyone- individuals and businesses- are paying their reasonable and fair amount.

Despite other issues dominating the news in Washington, now is the time for our federal elected officials to pass commonsense tax reform. Promises have been made, and we need those promises to be kept. Tax reform must be done so the economy can grow and more Californians can get back to work.

Kristin Olsen sits on the Stanislaus County Board of Supervisors and is a former member of the California Assembly.

Chad Mayes Selected as Next Assembly Republican Leader

Come January, Assembly Republicans will have a new leader.

On Tuesday, the 28 Republican members of the lower house selected Assemblyman Chad Mayes of Yucca Valley as their next leader. The caucus did not release the specific tally for the caucus vote nor indicate any other candidates for the leadership post.

“I am fortunate to inherit a Caucus that is united in its commitment to fiscal responsibility and meeting the needs of a 21st Century economy,” Mayes said in a press release following the announcement. “For California to thrive, legislative leaders must provide solutions that offer a pathway to prosperity. Too often politicians take actions that limit opportunity in the very communities they claim to serve.”

He added, “I look forward to working with our Caucus to make California a better place to call home.”

Mayes, who was elected to the state Assembly in 2014, will take over for current GOP leader Kristin Olsen when the Legislature reconvenes on January 4, 2016.

Second consecutive GOP leader to reject anti-tax pledge

Mayes said that he intends to carry on Olsen’s philosophy and approach to the post.

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“I am humbled by my colleagues’ confidence in my ability to lead the Caucus,” Mayes said. “I plan to build upon Kristin’s vision of bringing the Caucus and its supporting operations into the 21st Century. She has worked tirelessly to position our Caucus and its members for maximum success.”

Since taking over as minority leader, Olsen has embraced a more moderate approach and rejected the anti-tax rhetoric that is considered orthodoxy to traditional conservative Republicans. In 2012, Olsen publicly criticized the Taxpayer Protection Pledge, a promise by elected officials to oppose higher taxes.

“The problem with the no-tax pledge is that entrenched special interests interpret what is or is not a violation of the pledge in order to serve their own agendas – and sometimes their interpretations defy logic,” Olsen wrote in a Sacramento Bee opinion piece before taking over as leader. “To grow the Republican Party, we have to get away from relying solely on ‘No’ messages. We are better than that, and Californians deserve and desire solution-focused leadership that will help bring legislative Democrats over to our side on the need for lower taxes and substantive reforms.”

As a candidate for state Assembly, Mayes similarly rejected the anti-tax pledge. Mayes told the Desert Sun last year that “he’s not the kind of Republican who is out to blow up government … and said he declined to sign the taxpayer protection pledge.”

Mayes brings experience from more than a decade serving at the local government level. He was first elected to the Yucca Valley Town Council in 2002 and was twice re-elected. During his time on the town council, Mayes served as president of the Desert Mountain Division of the League of California Cities.

He also worked as a political staff member at the county-level, serving as chief of staff to San Bernardino County Supervisor Janice Rutherford.

Olsen’s tenure as leader

Olsen earned praise from her colleagues for her tenure as leader.

“Kristin may have been a transitional leader in terms of time, but she has been transformative in her impact on Caucus operations,” said Assembly Republican Caucus Chair Scott Wilk of Santa Clarita. “Her changes set a pathway to Republican relevancy and she worked to lay the foundation for a Republican majority in the near future. Thanks to Kristin, our Caucus is united, focused, and motivated.”

Olsen, who is termed out of the state Assembly next year, welcomed the leadership transition and said she’s proud of her accomplishments, which included a major staff shake-up as part of an effort of “modernizing caucus operations.”

Kristin_Olsen_Picture“My goal as Assembly Republican leader has been to unite our caucus and advance core principles that resonate with Californians and will revitalize our state: good jobs, great schools, and a more transparent, effective, and citizen-driven government,” Olsen said. “I am pleased that we have been able to accomplish this while modernizing our Caucus operations, hiring top-notch staff, and becoming pro-active and solution-focused.”

Mayes will have company learning the ropes as a new Republican leader. Last week, the Senate Republican Caucus announced that Sen. Jean Fuller of Bakersfield had unseated Sen. Bob Huff as Republican Senate leader.

Huff is running for an open seat on the Los Angeles County Board of Supervisors to replace longtime Supervisor Mike Antonovich. Other candidates for that seat include gang prosecutor Elan Carr, Glendale City Councilman Ara Najarian, Los Angeles City Councilman Mitchell Englander and Kathryn Barger, Antonovich’s chief of staff.

Originally published by CalWatchdog.com

Redevelopment Agencies Poised for a Comeback

Redevelopment agencies would once again have the power to seize private property for big developers under a bill that passed the California State Assembly earlier this month.

Assembly Bill 2, authored by Assemblyman Luis Alejo, D-Salinas, would give local governments the power to create new entities that would have the same legal authority as redevelopment agencies. These new Community Revitalization Investment Authorities would have the power to issue bonds, award sweetheart deals to businesses and “acquire and transfer property subject to eminent domain,” according to the legislative analysis of the bill.

Property rights advocates warn that the bill’s language contains no restrictions on eminent domain and could resurrect the abuses made possible by the Supreme Court’s controversial Kelo decision.

“It brings back the right of governments to exercise eminent domain against some private parties in order to resell their property to other private parties,” cautioned Howard Ahmanson, Jr., a property rights advocate and founder of Fieldstead and Company. “Only new and wealthy suburbs would be potentially spared from ‘redevelopment,’ the lower middle class and poor would not.”

12 Assembly Republicans back redevelopment, unrestricted eminent domain

In 2005, the U.S. Supreme Court ruled in Kelo v. New London that government agencies have the power to seize property for economic development. The decision was widely criticized across the political spectrum and inspired states to pass tougher laws limiting governments’ eminent domain powers. Here in California, the momentum for property rights reached its zenith in 2011, when Gov. Jerry Brown pushed through a plan to end redevelopment as part of his plan to balance the state budget.

Kristin_Olsen_PictureNow a decade since Kelo, the horror stories of small businesses being seized to make way for strip malls and condo complexes have faded from public memory. During the state Assembly’s floor debate on the bill, not a single member – Republican or Democrat – spoke in opposition to the bill, which passed by a 63-13 vote.

Surprisingly, a dozen Assembly Republican lawmakers, including Assembly GOP leader Kristin Olsen, joined the Democratic majority in backing the bill. Olsen’s office refused to comment on the bill or explain how the bill fit with the Republican Caucus’ position on property rights. One GOP lawmaker defended her vote by arguing that redevelopment agencies are an important tool for economic development.

“I ran for Assembly to help create jobs,” said Assemblywoman Young Kim, R-Fullerton. “RDAs give us another tool to do just that while turning around poor and disadvantaged areas.”

Redevelopment focused in areas with high unemployment, crime

Under the bill, a Community Revitalization Investment Authority could be created by a city, county or special district if certain conditions are met. The first requirement is that the area have an annual median household income that is less than 80 percent of the statewide median. Additionally, three of the following four conditions must be met:

  • Unemployment that is at least 3 percent higher than the statewide median unemployment rate;
  • A crime rate that is 5 percet higher than the statewide median crime rate;
  • Deteriorated or inadequate infrastructure such as streets, sidewalks, water supply, sewer treatment or processing, and parks;
  • Deteriorated commercial or residential structures.

“It’s redevelopment with a kinder, gentler twist,” explains Steven Greenhut, the state’s foremost expert on eminent domain and author of the book, Abuse of Power: How the Government Misuses Eminent Domain. “If AB2 passes, agencies will take property by eminent domain and use public dollars to fund private projects. Localities will run up debt without a vote of the public. As always, the plans of residents will give way to the edicts of the planners.”

There’s overwhelming evidence that redevelopment agencies harm small businesses, while failing in their mission to stimulate economies. That’s most evident in the landmark Kelo case, where a Connecticut town offered a corporate welfare package to the pharmaceutical giant Pfizer, Inc.

“While Ms. Kelo and her neighbors lost their homes, the city and the state spent some $78 million to bulldoze private property for high-end condos and other ‘desirable’ elements,” the Wall Street Journal observed in 2009. “Instead, the wrecked and condemned neighborhood still stands vacant, without any of the touted tax benefits or job creation.”

Those abuses extended to California’s application of redevelopment, property rights advocates say.

“California has rightly earned the reputation as one of the nation’s largest abusers of eminent domain, given that Redevelopment Agencies routinely abused their power of eminent domain to seize homes, small businesses and places of worship for private development,” wrote the California Alliance to Protect Private Property Rights, the state’s leading property rights group. “Time and time again, these obscure agencies diverted taxpayer dollars from core government programs to finance professional sports arenas, luxury hotels, golf courses and strip malls.”

Alejo: Bill needed to help disadvantaged communities

Nevertheless, supporters of AB2 say that blighted areas are a problem that demand government action.

“There are many areas in the state where the streets are broken and old water and sewer pipes lurk below,” Alejo said of his legislation. “In these areas, businesses do not open up shop. This leads to high unemployment, high crime rates and a hopeless community. This bill will work to tackle issues facing our state’s most disadvantaged communities.”

Several GOP lawmakers that opposed the bill dispute Alejo’s arguments.

“Private property rights are a foundational principle declared by our founding fathers,” said Asm. Scott Wilk, R-Santa Clarita, who opposed the bill. “Eminent domain is used by the government to trample on private property rights and as an individual property owner, there are legal protections in place to prevent government encroachment.”

Assemblywoman Melissa Melendez, R-Lake Elsinore, one of only 13 members to oppose the bill, said that she understands her colleagues interest in redevelopment, but can’t back legislation that undermines property rights.

“Stripping away property rights in the name of economic development isn’t the answer,” said Melendez, a former member of the Lake Elsinore City Council. “I think it has become more fashionable to allow the government to take over instead of allowing the free market to do so.”

Originally published by CalWatchdog.com

Assembly GOP Leader Kristin Olsen Introduces New Stars

 

Ling and Young2014 was a solid year for California Republicans. In the state Senate, the GOP prevented Democrats from regaining a two-thirds supermajority.

And in the Assembly, Republicans defeated three Democratic incumbents, which also reversed a Democratic supermajority.

“We unseated sitting Democrats for the first time in 20 years because Californians want positive change and because we had great, hard-working candidates on the ballot this year, candidates who are connected with their communities and know the challenges facing people in their districts,” newly elected Assembly Republican Leader Kristin Olsen told CalWatchdog.com. “They were more diverse than ever – in gender, ethnicity, culture, socio-economic upbringing and background.”

Is the GOP changing? In the Assembly, women make up a greater share of the Republican caucus than the Democratic caucus. Although Democrats hold nearly a two-thirds majority in the lower house, there are nearly as many Republican women (seven) as there are Democratic women (currently 10; or 11 if Patty Lopez defeats Raul Bocanegra in AD 39 in a tight race — Lopez currently leads by seven votes; both are Democrats).

The Friday following the election, Olsen introduced to the Sacramento press the three most talked about new members of her caucus — each of whom has a major achievement by virtue of her election. Catharine Baker is the first Republican to win a Bay Area legislative seat in years. Ling-Ling Chang is the first Taiwanese-American Republican woman to join the Assembly. And Young Kim is the first Korean-American Republican elected to the lower house.

Young Kim: First Korean American GOP woman elected to State Assembly

Kim’s election was significant for the Korean-American community and Republicans’ efforts to court Asian-American voters. Kim’s victory, which was front page news in Korean-language newspapers, resonated in Orange County’s  Koreatown and the much larger Koreatown in Los Angeles.
“In particular, the election of Young Kim is being evaluated as a political upset by even the mainstream community,” the Korea Times noted. “In politics, there is a huge advantage of being an incumbent. The probability of a first-time candidate to win over an incumbent is almost impossible. However, Young Kim was able to overcome difficult obstacles and disadvantages and win.”

For the next two years, you can expect Kim to be an almost daily fixture in the Korean-language newspapers, where she’ll be talking about lowering taxes and improving California’s business climate.

“Now that we’ve broken the Democrats’ supermajority in both houses, taxpayers can sleep a little better at night knowing that Proposition 13 is safe, at least for the next two years,” Kim told CalWatchdog.com, referencing the 1978 tax-limitation initiative.

She says she’ll focus on creating a business-friendly environment to help spur job creation in California as well as keeping our communities safe by putting a focus on public safety.

Fast-track to GOP leadership: Ling-Ling Chang

If there’s one freshman Republican on the fast-track to leadership, it’s Chang. She’s a smart, articulate assemblywoman-elect with impressive fundraising at a time when Republicans are serious about re-branding the party.

It’d be a no-brainer for Chang to land a spot on the Assembly Health Committee, one of the most coveted assignments in the lower house. An expert on public health, Chang has experience in both the non-profit and for-profit side of health care. She’s worked in the corporate sector training physicians and medical staff at various hospitals across Southern California.

jay obernolteWith a spot on a juice committee, Chang would boost her already robust fundraising, which aided GOP targets in November. In the final two months of the campaign, Chang contributed more than $60,000 to party committees and legislative targets, including colleagues Kim, David Hadley, Tom Lackey, Marc Steinorth, Catharine Baker and Eric Linder.

When CalWatchdog.com asked her about the incoming GOP class, she quickly focused the spotlight on her colleagues. One colleague, who is getting buzz as an expert in technology, is Jay Obernolte, a fellow Southern California Republican freshman.

“Jay is one of the smartest, most technologically savvy individuals I know,” Chang told us when we asked about the new freshmen class. “His experience as a software and video game developer and business owner will bring a cutting edge perspective for Republicans to the issues facing California.”

Obernolte, the mayor of Big Bear Lake, founded FarSight Studios, a successful video game company that makes “family videogames for the PlayStation3, Nintendo Wii, Xbox 360, Nintendo DS, Apple iPhone, and the PC.” For a caucus looking to make inroads with Silicon Valley, who better than a video-gaming geek who graduated from UCLA and CalTech?

Catharine Baker: Lone GOP voice in Bay Area

Republicans also benefit from Baker’s representation of the Bay Area. For years, Republicans have been without any state or federal elected officials in the region. An attorney from Pleasanton, Baker becomes the most prominent Republican official for hundreds of miles in the Bay Area.

In practical terms, that’s a very big deal. It means she’ll be sending out field representatives to PTA meetings, distributing certificates at chamber breakfasts and fielding constituent calls to help with the DMV– all the boring things that win elections.

“Voters sent a message on Election Day that the culture of corruption and one-party rule in the Legislature is unacceptable and not healthy for our state,” Olsen said.

She added, “Now, our Assembly Republican Caucus will take the responsibility voters have given us and work hard together to put California on a better path for ALL Californians in each and every neighborhood.”

This article was originally published on CalWatchdog.com