TAX NEWS - 2010

California Tax: Taxpayers must beware of legislative efforts

I became aware of "California Forward" — a new attempt to raise taxes and make an end run around the two-thirds majority required to pass the annual state budget when I heard Supervisor John Gioia endorse it during his debate with challenger Mister Phillips at the recent Contra Costa Council-sponsored election event.

Additionally, Gioia also touted "targeted taxes" such as the Measure E parcel tax he promoted to charge El Sobrante and East Richmond Heights property owners for an additional deputy sheriff — a measure supported by the Contra Costa Deputy Sheriff's Association.

The list of "principles" for this program shows an agenda that would completely change California government and give Sacramento lawmakers unbridled power to raise taxes and make changes to the way local governments do business.

The principles are couched in language that seem to offer a solution to our recurring budget problems until you look more closely.

For instance, this program advocates a "majority vote" for passage of the state budget. In my opinion, the power of a one-third minority to have some bargaining power with the ever present "tax and spend" majority is essential to prevent our state from sinking into complete economic oblivion.

At this point, the mostly liberal crowd that is advocating this program hasn't advocated lowering the two-third majority vote needed for passing new taxes, but give them the power this program contains and this could become a reality.

Local governments would be given the power to "implement countywide action plans" that could give county supervisors the ability to "ask voters to approve an increase in the sales and use tax of up to 1 cent" and "distribute the tax among local governments."

Bottom line, now local government would have increased taxation power!

The California Forward program could be implemented if two bills, ACA4 and AB2591, both sponsored by Mike Feurer, D-Los Angeles, are passed.

It is crucial for taxpayers to let their Assemblyman know how they feel about this massive power grab.

Proponents are pushing for a vote before June 25 before legislators risk losing pay for not passing a budget on time.