Californians don’t really agree on many things, but nearly 80% of us came together to vote for Arnold the first time and a bit less the second time. We had hoped to see plans to get California economically moving forward but I never saw anything, did you? Another great hope was to see state and local taxes get under control, but the rates, fees and other euphemisms for ‘tax’ are ever increasing.
The concept of a ‘flat tax’ has been around for a long time. The rich pay more and the burden or ‘pain’ is spread relatively on a percentage basis — in many people’s minds — more fairly.
The problem is that WHO is going to determine what that flat rate is? Unfortunately, the answer to that problem would be formulated by the same people who don’t want to make other tough decisions in Sacramento, today. Once a percentage is determined, could it be increased?
I won’t say that the Governor has disappointed me, completely. I didn’t expect a lot. (However, he did appoint a certain individual to the CSU Board of Trustees who — in my humble opinion — is a very unfortunate human being.) I know California’s tough fiscal situation, but I would first like to see some real problem solving before any politician ask us to take a leap of faith with a new tax code.
The rationale the Governor and others are using to pursue this aggressive tax gathering strategy is to level out revenue ( mostly income from taxes and fees) volatility. The truth of the volatility being experienced in tax revenue is probably due more to an inconsistent and incrementally increasing taxation policy than general economic conditions… plus little evidence exists for reversing any of these well entrenched anti-economic policies. Here’s how California is presenting the issue.
California politicians rank below troubled bank executives and greedy investment folk… and that says a lot. Trust needs to be earned and few of us are there, yet.
Roger Freberg