The tax man cometh

Apr 15, 2009

Happy tax day.  While the state's blue ribbon commission charged with overhauling California's volatile tax system missed today's deadline, you probably shouldn't.

 

Dan Walters writes: "The blue-ribbon commission was convened to reduce that volatility, although its hearings have been forums for just about every tax theory known to humankind.

"In fact, taxation – decreeing who pays and how much – is an entirely arbitrary process. While we try to invest taxation with a moral dimension, it is inherently amoral, as any history of tax policy quickly proves. Every segment of society seeks to minimize its own share of the tax burden and increase everyone else's portion, which is why the tax commission's efforts at rebalancing the system may be doomed.

"Ultimately, California's logic-deficient tax system is a perfect reflection of its impenetrably dense politics." 

 

Meanwhile, Fox News's Neil Cavuto will be in Sacramento to celebrate National Tea Bag Day, as will conservative commentator Michelle Malkin.

 

The AP's Beth Fouhy writes the story of how Jerry Brown's would-be competition for governor are trying to make an issue out of his age.

"Steve Poizner, a Silicon Valley multimillionaire running for the GOP nomination, recently released a tongue-in-cheek statement congratulating Brown on the 40th anniversary of his first election to public office.

"In April 1969, Poizner noted, "Nixon was the newly inaugurated President, John Lennon and Yoko Ono were going strong, people were still using carbon paper, an Apple was something you ate and the Apollo mission had not yet landed on the moon."

"Garry South, a strategist for one of Brown's Democratic rivals, 41-year old San Francisco Mayor Gavin Newsom, observed Brown's birthday last week with a message on his Facebook page: 'Imagine being born when FDR was president!'

"Brown is quick to reject comparisons to Hillary Clinton, whose presidential bid foundered last year after rival Barack Obama framed her candidacy as a relic of the past. 'Newsom is trying to make everyone think I'm Hillary, and he's Obama, but those analogies just don't work,' Brown said of his Democratic rival."

 

Hillary has better hair.

 

Meanwhile, the LAT's Willon and Zahinser say Antonio Villaraigosa is beginning to change his tone . "Mayor Antonio Villaraigosa on Tuesday laid out a second-term agenda weighted heavily toward the creation of environmentally friendly jobs to rescue Los Angeles from its economic malaise but warned of serious pain ahead as the city digs out of a half-billion-dollar budget shortfall.

"Delivering his fourth State of the City speech since taking office, Villaraigosa's remarks struck the tone of a Democratic candidate for governor, with scorching critiques of both Sacramento lawmakers and Washington conservatives."

 

"Facing what could be the largest cash flow problem in state history, California officials are asking the federal government to back billions of dollars in short-term loans the state must seek in July," writes Steve Wiegand in the Bee.

 

"'We're going to need cash-flow borrowing the likes of which California has never seen, at a time when market and economic forces are stacked against us,' said Tom Dresslar, spokesman for state Treasurer Bill Lockyer. 'That's a recipe for calamity.'

"While the state routinely borrows money at the start of fiscal years on July 1 by issuing interest-bearing Revenue Anticipation Notes, or RANs, a combination of factors have conspired to form a mountainous hurdle this time around.

"Those factors include the sheer size of the amount needed – at least $13 billion – the state's woeful credit rating and the generally sorry state of the nation's financial markets.

"Precisely what kind of help it would be hasn't been decided. A spokesman for the House Financial Services Committee, chaired by Rep. Barney Frank, D-Mass., confirmed that Lockyer had met with Frank in late March, and that Frank was in the process of drafting legislation designed to aid states and local governments with problems similar to California's."

 

Meanwhile, perhaps hoping the state has to borrow even more, "[l]abor groups will fight Proposition 1A, Gov. Arnold Schwarzenegger's May 19 ballot measure that puts a cap on state spending and boosts California's rainy-day reserve fund. But it remains to be seen whether the opposition campaign will be much more than stern news releases," writes the Chron's John Wildermuth.

"The 700,000-member California SEIU, the state's largest public employees union, has joined with the California Faculty Association and the California Federation of Teachers to battle Prop. 1A, the keystone of the governor's budget-reform package.

"But when it comes to how they'll do that, the unions are a bit short of details and, at least so far, money.

"'We're going to be running a spirited campaign,' said Mike Roth, a consultant for the union effort. Asked what that means in terms of cash, he said the campaign 'is not going to be talking about resources.'

"When a political campaign doesn't want to talk about money, it's usually because it doesn't have much. While the teachers' federation put $100,000 into the anti-Prop. 1A campaign Tuesday, other opponents have been slow to reach for their checkbooks."

 

Hmm, we've heard SEIU called a lot of things, but rarely "short on cash." But we digress...


"On the other side, Budget Reform Now, Schwarzenegger's umbrella group for all six ballot measures, has collected about $5 million. The California Teachers Association put another $5 million into Prop. 1B, which guarantees schools $9.3 billion if it and 1A pass."

 

The No side raised a total of $299,000 yesterday from the California Federation of Teachers,California Faculty Association and SEIU, as reported on ElectionTrack.  Meanwhile, the big checks roll in for the Yes on 1A campaign.

 

Carla Marinucci posts on the Chron's blog:  "Democratic state Attorney General Jerry Brown, standing Tuesday at the side of Republican Gov. Arnold Schwarzenegger, declared his support for the Republican governor's budget reform measures Props. 1A-1F on the May 19 special election ballot.

"The two state officials were surrounded by fire and police chiefs from Alameda County at an Alameda fire station for the announcement by the attorney general and former two-term governor who is strongly considered likely to run for a third gubernatorial term in the 2010 election.

"The move comes just days after Brown expressed what was described in a Calbuzz interview as "tepid" support for 1A, and took no position at all on the rest of the ballot measures, saying he hadn't yet read them.

"'If these don't pass, it's going to make the next governor's job that much tougher,' said Brown, who called Prop. 1A 'a crucial proposition ... because the state needs the money and the state needs the spending cap.'"

 

Now why would Jerry care about that?

 

Syndicated columnist Thomas Elias writes that the doomsday scenarios given by political leaders about the ballot measures show they're getting desperate.

"Every poll shows that the more voters learn about these propositions, the taxes they mandate and the deceptive nature of their official ballot arguments, the less likely they are to vote yes on any of them — except 1F, which hits legislators financially when they are late passing budgets.

"So it's no wonder the pols have turned to doomsday threats. That may be the only way they can get voters' attention for a batch of seriously flawed propositions that place new burdens on recession-wracked citizens while failing to provide any permanent solutions to the state's long-running budget problems."

 

"Water rates will soar in Southern California but customers won't have to conserve as much as initially feared, based on a plan approved yesterday by the Metropolitan Water District," reports Mike Lee in the U-T.

"In one of its most anticipated meetings in years, the board of the giant water wholesaler paved the way for increasing its rates by more than 40 percent from September to 2011.

"The panel also found that water supplies are greater than previously thought. Its reductions amount to a 13 percent decrease for the San Diego County Water Authority, the local agency said, down from a worst-case scenario of 20 percent.

"The authority has other sources of water, so it will likely impose a cut of only 8 percent to 10 percent for its customers – retail water districts that serve homeowners, businesses and institutional clients across the county."

 

"A major new report profiling America's illegal immigrants estimates that 10 percent of California's work force is undocumented, while close to 14 percent of the state's schoolchildren have at least one parent in the country illegally.

"This group of California K-12 kids is divided: Roughly two-thirds are U.S. citizens by birth and one-third are themselves illegal immigrants, according to the report issued Tuesday by the Pew Hispanic Center in Washington, D.C.

"The report marks the first time Pew – a leading nonpartisan research center – has attempted to use census survey data to quantify this young population. Schools in California and many other states do not make official counts of these children or parents.

"'What is striking about this population is it is a population made up of young families,' said Jeffrey Passel, Pew senior demographer and the report's co-author."

 

Jake Henshaw reports that John Benoit's bid to get high-speed golf carts on the roads in Palm Desert is on hold -- for now. "Sen. John J. Benoit, R-Bermuda Dunes, said his bill has run into questions about the safety of allowing the so-called neighborhood electric vehicles, which have maximum speeds of 25 mph, to travel on streets with a 55 mph speed limit.'They are having a hard time getting their arms around how to do that,' Benoit said of the Senate Transportation and Housing Committee, which now has jurisdiction over the bill."

 

And finally, from our First As Tragedy, Then As Farce Files, "A day after the violent rescue of a U.S. ship captain from Somali pirates, a cable television channel on Monday said it will air a reality show about the U.S. Navy's mission to stop piracy off the coast of Africa.

Producers and the Navy have been in talks for three months about the show, which is titled "Pirate Hunters: USN" and is expected to air as a one-hour special in the fall on Spike TV."

 

Ooh, we just got that Wag the Dog feeling...


 
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