Home › Forums › Financial Markets/Economics › CA income taxes increasing 2.5%?
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December 21, 2008 at 11:48 AM #319160December 26, 2008 at 7:05 AM #320178CoronitaParticipant
Here we go..
http://www.autoblog.com/2008/12/25/california-legislature-passes-buget-with-a-0-39-per-gallon-gas/
California legislature passes budget with a $0.39 per gallon gas “user fee”
California hasn’t been able to borrow money for months, and according to the state’s treasurer, it will run out of money in February or March if it doesn’t pass a budget and get some income flowing. The majority Democratic legislature has sent Governor Schwarzenegger a budget that contains a suite of “revenue enhancements” that the Democrats call fees, not taxes. In addition to a jump in the state sales tax and personal income tax, there’s also a provision to apply a per gallon gas “fee” of 39 cents.
The biggest problem with the proposed budget is the way in which it was passed, which relies on the definition of the word “tax”. Democrats used a simple majority vote to pass the proposed budget, instead of the mandatory 2/3 majority needed to pass new taxes, because they say “it does not technically increase the amount of taxes on Californians.” For instance, because the gas “fee” would be set aside for transportation projects only, it isn’t a tax, it’s a user fee, and so it doesn’t require a 2/3 majority vote.
Call it what you want, Californians would be paying more money, so Republicans have vowed not to support what they call increased taxes. Citizen’s groups have also promised to sue the state if Schwarzenegger signs the proposed budget as is. The other problem is that Schwarzenegger has already vowed to veto it, but not over the tax vs. fee issue. He said he’ll let other people sort that out – what he really wants are bigger cuts in spending before he’ll approve anything. The budget discussions resume on Friday as lawmakers work to have something done by year’s end.
December 26, 2008 at 7:05 AM #320524CoronitaParticipantHere we go..
http://www.autoblog.com/2008/12/25/california-legislature-passes-buget-with-a-0-39-per-gallon-gas/
California legislature passes budget with a $0.39 per gallon gas “user fee”
California hasn’t been able to borrow money for months, and according to the state’s treasurer, it will run out of money in February or March if it doesn’t pass a budget and get some income flowing. The majority Democratic legislature has sent Governor Schwarzenegger a budget that contains a suite of “revenue enhancements” that the Democrats call fees, not taxes. In addition to a jump in the state sales tax and personal income tax, there’s also a provision to apply a per gallon gas “fee” of 39 cents.
The biggest problem with the proposed budget is the way in which it was passed, which relies on the definition of the word “tax”. Democrats used a simple majority vote to pass the proposed budget, instead of the mandatory 2/3 majority needed to pass new taxes, because they say “it does not technically increase the amount of taxes on Californians.” For instance, because the gas “fee” would be set aside for transportation projects only, it isn’t a tax, it’s a user fee, and so it doesn’t require a 2/3 majority vote.
Call it what you want, Californians would be paying more money, so Republicans have vowed not to support what they call increased taxes. Citizen’s groups have also promised to sue the state if Schwarzenegger signs the proposed budget as is. The other problem is that Schwarzenegger has already vowed to veto it, but not over the tax vs. fee issue. He said he’ll let other people sort that out – what he really wants are bigger cuts in spending before he’ll approve anything. The budget discussions resume on Friday as lawmakers work to have something done by year’s end.
December 26, 2008 at 7:05 AM #320578CoronitaParticipantHere we go..
http://www.autoblog.com/2008/12/25/california-legislature-passes-buget-with-a-0-39-per-gallon-gas/
California legislature passes budget with a $0.39 per gallon gas “user fee”
California hasn’t been able to borrow money for months, and according to the state’s treasurer, it will run out of money in February or March if it doesn’t pass a budget and get some income flowing. The majority Democratic legislature has sent Governor Schwarzenegger a budget that contains a suite of “revenue enhancements” that the Democrats call fees, not taxes. In addition to a jump in the state sales tax and personal income tax, there’s also a provision to apply a per gallon gas “fee” of 39 cents.
The biggest problem with the proposed budget is the way in which it was passed, which relies on the definition of the word “tax”. Democrats used a simple majority vote to pass the proposed budget, instead of the mandatory 2/3 majority needed to pass new taxes, because they say “it does not technically increase the amount of taxes on Californians.” For instance, because the gas “fee” would be set aside for transportation projects only, it isn’t a tax, it’s a user fee, and so it doesn’t require a 2/3 majority vote.
Call it what you want, Californians would be paying more money, so Republicans have vowed not to support what they call increased taxes. Citizen’s groups have also promised to sue the state if Schwarzenegger signs the proposed budget as is. The other problem is that Schwarzenegger has already vowed to veto it, but not over the tax vs. fee issue. He said he’ll let other people sort that out – what he really wants are bigger cuts in spending before he’ll approve anything. The budget discussions resume on Friday as lawmakers work to have something done by year’s end.
December 26, 2008 at 7:05 AM #320595CoronitaParticipantHere we go..
http://www.autoblog.com/2008/12/25/california-legislature-passes-buget-with-a-0-39-per-gallon-gas/
California legislature passes budget with a $0.39 per gallon gas “user fee”
California hasn’t been able to borrow money for months, and according to the state’s treasurer, it will run out of money in February or March if it doesn’t pass a budget and get some income flowing. The majority Democratic legislature has sent Governor Schwarzenegger a budget that contains a suite of “revenue enhancements” that the Democrats call fees, not taxes. In addition to a jump in the state sales tax and personal income tax, there’s also a provision to apply a per gallon gas “fee” of 39 cents.
The biggest problem with the proposed budget is the way in which it was passed, which relies on the definition of the word “tax”. Democrats used a simple majority vote to pass the proposed budget, instead of the mandatory 2/3 majority needed to pass new taxes, because they say “it does not technically increase the amount of taxes on Californians.” For instance, because the gas “fee” would be set aside for transportation projects only, it isn’t a tax, it’s a user fee, and so it doesn’t require a 2/3 majority vote.
Call it what you want, Californians would be paying more money, so Republicans have vowed not to support what they call increased taxes. Citizen’s groups have also promised to sue the state if Schwarzenegger signs the proposed budget as is. The other problem is that Schwarzenegger has already vowed to veto it, but not over the tax vs. fee issue. He said he’ll let other people sort that out – what he really wants are bigger cuts in spending before he’ll approve anything. The budget discussions resume on Friday as lawmakers work to have something done by year’s end.
December 26, 2008 at 7:05 AM #320677CoronitaParticipantHere we go..
http://www.autoblog.com/2008/12/25/california-legislature-passes-buget-with-a-0-39-per-gallon-gas/
California legislature passes budget with a $0.39 per gallon gas “user fee”
California hasn’t been able to borrow money for months, and according to the state’s treasurer, it will run out of money in February or March if it doesn’t pass a budget and get some income flowing. The majority Democratic legislature has sent Governor Schwarzenegger a budget that contains a suite of “revenue enhancements” that the Democrats call fees, not taxes. In addition to a jump in the state sales tax and personal income tax, there’s also a provision to apply a per gallon gas “fee” of 39 cents.
The biggest problem with the proposed budget is the way in which it was passed, which relies on the definition of the word “tax”. Democrats used a simple majority vote to pass the proposed budget, instead of the mandatory 2/3 majority needed to pass new taxes, because they say “it does not technically increase the amount of taxes on Californians.” For instance, because the gas “fee” would be set aside for transportation projects only, it isn’t a tax, it’s a user fee, and so it doesn’t require a 2/3 majority vote.
Call it what you want, Californians would be paying more money, so Republicans have vowed not to support what they call increased taxes. Citizen’s groups have also promised to sue the state if Schwarzenegger signs the proposed budget as is. The other problem is that Schwarzenegger has already vowed to veto it, but not over the tax vs. fee issue. He said he’ll let other people sort that out – what he really wants are bigger cuts in spending before he’ll approve anything. The budget discussions resume on Friday as lawmakers work to have something done by year’s end.
December 26, 2008 at 10:11 PM #320363EconProfParticipantSome background to understand K-12 education spending in CA:
Our per pupil spending ranks us in about the middle as compared to other states.
Yet our average teacher pay is highest or second highest in the nation.
Why is this? Simple, our average class sizes are huge. About 20 years ago, our strong teachers unions had a choice between higher pay accompanied by bigger class sizes, and smaller classes accompanied by more normal teacher paychecks.
They chose the money, to the detriment of the kids.December 26, 2008 at 10:11 PM #320709EconProfParticipantSome background to understand K-12 education spending in CA:
Our per pupil spending ranks us in about the middle as compared to other states.
Yet our average teacher pay is highest or second highest in the nation.
Why is this? Simple, our average class sizes are huge. About 20 years ago, our strong teachers unions had a choice between higher pay accompanied by bigger class sizes, and smaller classes accompanied by more normal teacher paychecks.
They chose the money, to the detriment of the kids.December 26, 2008 at 10:11 PM #320763EconProfParticipantSome background to understand K-12 education spending in CA:
Our per pupil spending ranks us in about the middle as compared to other states.
Yet our average teacher pay is highest or second highest in the nation.
Why is this? Simple, our average class sizes are huge. About 20 years ago, our strong teachers unions had a choice between higher pay accompanied by bigger class sizes, and smaller classes accompanied by more normal teacher paychecks.
They chose the money, to the detriment of the kids.December 26, 2008 at 10:11 PM #320780EconProfParticipantSome background to understand K-12 education spending in CA:
Our per pupil spending ranks us in about the middle as compared to other states.
Yet our average teacher pay is highest or second highest in the nation.
Why is this? Simple, our average class sizes are huge. About 20 years ago, our strong teachers unions had a choice between higher pay accompanied by bigger class sizes, and smaller classes accompanied by more normal teacher paychecks.
They chose the money, to the detriment of the kids.December 26, 2008 at 10:11 PM #320861EconProfParticipantSome background to understand K-12 education spending in CA:
Our per pupil spending ranks us in about the middle as compared to other states.
Yet our average teacher pay is highest or second highest in the nation.
Why is this? Simple, our average class sizes are huge. About 20 years ago, our strong teachers unions had a choice between higher pay accompanied by bigger class sizes, and smaller classes accompanied by more normal teacher paychecks.
They chose the money, to the detriment of the kids.December 26, 2008 at 11:39 PM #320378CA renterParticipantHere’s what I think we should do:
1. Eliminate Prop 13 protection for all second homes and investment properties (can be some exceptions WRT multi-family, rental units, like apartment buildings).
2. Eliminate the Prop 13 protection for commercial RE which allows a new buyer to pay the old taxes when they sell the property as a corporation.
**I strongly favor Prop 13 protection for primary residences and a single commercial property per person/entity controlled by a particular person. IOW, one residence and one commercial property per person gets Prop 13 protection, all the rest floats. BTW Prop 13 is NOT what causes bubbles, it is a response to them…also it is NOT the cause of our funding problems, illegal immigration is (and the businesses that we taxpayers — whose wages are driven down by illegal labor — subsidize because these employers won’t properly pay/care for their employees).
3. Eliminate all government-paid entitlements for illegal immigrants (education, healthcare, housing, food stamps, AFDC, legal and law enforcement costs, etc.). Make the employers pay instead. In cases where an illegal immigrant shows up in an emergency room with a life-threatening illness/trauma, bill the country from which he/she came — or their employer — for the services.
4. Create a one-time “new California resident” fee whenever someone moves here from another state or country…to help pay for the extra burden on our infrastructure (including water supplies).
5. Additional gas tax and .5% sales tax increase.
I’ll bet that if the above were done, we wouldn’t have a budget problem in California.
December 26, 2008 at 11:39 PM #320724CA renterParticipantHere’s what I think we should do:
1. Eliminate Prop 13 protection for all second homes and investment properties (can be some exceptions WRT multi-family, rental units, like apartment buildings).
2. Eliminate the Prop 13 protection for commercial RE which allows a new buyer to pay the old taxes when they sell the property as a corporation.
**I strongly favor Prop 13 protection for primary residences and a single commercial property per person/entity controlled by a particular person. IOW, one residence and one commercial property per person gets Prop 13 protection, all the rest floats. BTW Prop 13 is NOT what causes bubbles, it is a response to them…also it is NOT the cause of our funding problems, illegal immigration is (and the businesses that we taxpayers — whose wages are driven down by illegal labor — subsidize because these employers won’t properly pay/care for their employees).
3. Eliminate all government-paid entitlements for illegal immigrants (education, healthcare, housing, food stamps, AFDC, legal and law enforcement costs, etc.). Make the employers pay instead. In cases where an illegal immigrant shows up in an emergency room with a life-threatening illness/trauma, bill the country from which he/she came — or their employer — for the services.
4. Create a one-time “new California resident” fee whenever someone moves here from another state or country…to help pay for the extra burden on our infrastructure (including water supplies).
5. Additional gas tax and .5% sales tax increase.
I’ll bet that if the above were done, we wouldn’t have a budget problem in California.
December 26, 2008 at 11:39 PM #320778CA renterParticipantHere’s what I think we should do:
1. Eliminate Prop 13 protection for all second homes and investment properties (can be some exceptions WRT multi-family, rental units, like apartment buildings).
2. Eliminate the Prop 13 protection for commercial RE which allows a new buyer to pay the old taxes when they sell the property as a corporation.
**I strongly favor Prop 13 protection for primary residences and a single commercial property per person/entity controlled by a particular person. IOW, one residence and one commercial property per person gets Prop 13 protection, all the rest floats. BTW Prop 13 is NOT what causes bubbles, it is a response to them…also it is NOT the cause of our funding problems, illegal immigration is (and the businesses that we taxpayers — whose wages are driven down by illegal labor — subsidize because these employers won’t properly pay/care for their employees).
3. Eliminate all government-paid entitlements for illegal immigrants (education, healthcare, housing, food stamps, AFDC, legal and law enforcement costs, etc.). Make the employers pay instead. In cases where an illegal immigrant shows up in an emergency room with a life-threatening illness/trauma, bill the country from which he/she came — or their employer — for the services.
4. Create a one-time “new California resident” fee whenever someone moves here from another state or country…to help pay for the extra burden on our infrastructure (including water supplies).
5. Additional gas tax and .5% sales tax increase.
I’ll bet that if the above were done, we wouldn’t have a budget problem in California.
December 26, 2008 at 11:39 PM #320795CA renterParticipantHere’s what I think we should do:
1. Eliminate Prop 13 protection for all second homes and investment properties (can be some exceptions WRT multi-family, rental units, like apartment buildings).
2. Eliminate the Prop 13 protection for commercial RE which allows a new buyer to pay the old taxes when they sell the property as a corporation.
**I strongly favor Prop 13 protection for primary residences and a single commercial property per person/entity controlled by a particular person. IOW, one residence and one commercial property per person gets Prop 13 protection, all the rest floats. BTW Prop 13 is NOT what causes bubbles, it is a response to them…also it is NOT the cause of our funding problems, illegal immigration is (and the businesses that we taxpayers — whose wages are driven down by illegal labor — subsidize because these employers won’t properly pay/care for their employees).
3. Eliminate all government-paid entitlements for illegal immigrants (education, healthcare, housing, food stamps, AFDC, legal and law enforcement costs, etc.). Make the employers pay instead. In cases where an illegal immigrant shows up in an emergency room with a life-threatening illness/trauma, bill the country from which he/she came — or their employer — for the services.
4. Create a one-time “new California resident” fee whenever someone moves here from another state or country…to help pay for the extra burden on our infrastructure (including water supplies).
5. Additional gas tax and .5% sales tax increase.
I’ll bet that if the above were done, we wouldn’t have a budget problem in California.
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