The Roundup

Aug 12, 2010

Taxing debate

Be on the look out for two big court rulings today: one to determine if gays can marry while the Prop.8 case is appealed and another that will determine whether state worker furloughs will begin again tomorrow.

 

Meanwhile, The state's legislative analyst says Democrats' plan for lowering sales taxes and increasing income taxes would lead to a middle-class tax increase.

 

Kevin Yamamura reports, "The plan calls for higher state taxes on income and vehicles but lower sales taxes. Democrats said taxpayers would save by virtue of federal deductions and lower costs at the cash register.

 

"But Jason Sisney, state finance director for the Legislative Analyst's Office, told a Senate committee the proposal would generally result in higher taxes for taxpayers earning between $20,000 and $200,000 a year, based on preliminary analysis.

 

"Sisney did not say how large the average hikes would be, but that the plan would raise taxes overall for state residents by $1.2 billion in 2011-12."

 

But Wyatt Buchanan reports that doesn't mean everybody thinks it's a bad thing.

 

"Still, the proposal won praise from the retail and automotive industries, along with tax experts who addressed the committee.

 

"It's a smart proposal that brings in billions at little or no cost to California," said Joseph Bankman, a professor of law and business at Stanford Law School. "So, when you actually can find something for nothing it's probably a good idea to take it."

 

Bankman was referring to the fact that people who itemize tax returns can deduct state income taxes and vehicle license fees from their federal income taxes. That means the federal government would essentially credit many Californians for the increased state taxes."

 

Bell residents slammed Meg Whitman for comparing Jerry Brown's tenure in Oakland to their city's current salary scandal.

 

"“We have a simple message for Meg Whitman. Don’t take the suffering of Bell residents and use it for political purposes. Cease and desist!” said Denise Rodarte, a representative of the Bell Assn. to Stop the Abuse.

 

Bell has been reeling from revelations first reported in the Los Angeles Times that top city officials were being paid as much as $787,637. Several have already resigned, and

 

Republican Los Angeles County Dist. Atty. Steve Cooley and Brown, the state’s current attorney general, have teamed up for an investigation.

 

Glossy mailers and widespread advertisements by Whitman began appearing in Los Angeles County mailboxes and radio stations Wednesday. In both the mailers and the ads,

 

Marc Lifsher reports jobs data shows Jerry Brown has the strongest record of any of the five most recent California governors when it comes to creating jobs as a percentage of national job growth.

 

" Democrat Jerry Brown has the strongest record of any of the five most recent California governors when it comes to creating jobs as a percentage of national job growth, says a former state Employment Development Department director who has been studying the numbers.

 

"Michael Bernick, a San Francisco employment lawyer who ran the jobs agency under former Gov. Gray Davis, notes that the 1.9 million net gain in jobs during Brown's two terms as governor, from January 1975 to January 1983, accounted for 17.3% of the nationwide gain in jobs for the same period.

 

That performance was ahead of 13.8% of the total under Gov. George Deukmejian from 1983 to 1991; 11.3% under Davis from 1999 to 2003 and 7.2% under Gov. Pete Wilson from 1991 to 1999."

 

George Skelton wants pork projects cut from the $11 billion water bond.

 

" The governor and the Legislature did the smart thing politically by removing their pork-stuffed water bond proposal from the voters' grasp in November.

Next, they should do the prudent thing, both politically and fiscally, by tossing out the pork. That would make the bond much more digestible to voters if, indeed, it does wind up on the 2012 ballot as now scheduled."

 

Capitol Weekly looks at the politics behind moving the bond in the first place.

 


"Everyone had their own reason for wanting to save or kill the water bond. Contra Costa County members say the proposal will lead to the construction of a peripheral canal that will take water out of the Sacramento-San Joaquin River Delta. Conservatives argued that keeping the measure on the ballot might limit the governor’s fundraising ability to fight Proposition 23, a suspension of the state’s greenhouse gas law. If Schwarzenegger had to raise money to save the bond, the reasoning went, he would not be able to spend as much on the No on 23 campaign.


“The bottom line is that the governor wanted to move the bond measure to 2012 because he can’t pass the water bond and defeat Prop. 23 at the same time,” said Logue. “That’s what’s behind the whole thing.”

 

 

Capitol Weekly's John Howard looks at the coming fight over redistricting.

 

And finally, for anyone who didn't get the full Steven Slater/JetBlue story, there's now a computer-animated reinactment of the entire incident. Enjoy...

 
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