Posted on 01/15/2017 9:58:11 AM PST by Jim Robinson
Despite tax collection increasing by 50 percent in the last 9 years, California’s public pension insolvency is forcing Gov. Jerry Brown to propose a dangerously unpopular 42 percent increase in gasoline taxes and a 141 percent increase in vehicle registration fees. Breitbart News reported on January 9 that Gov. Brown announced that for the first time since 2012, California’s $122.8 billion General Fund Budget is in deficit by $1.6 billion. Despite a near bankruptcy during the financial crisis, California’s tax revenues have increased by about $43 billion in the last 9 years. Brown on Monday only suggested relatively painless spending reductions to close the budget gap. He was very careful to not suggest highly controversial increases in gasoline tax or vehicle fees.
Democrat governors have been regularly spiking gas taxes and vehicle registration fees for decades. But 12 years ago, Democrat Gov. Gray Davis was recalled by voters after he pushed the state legislature to pass a vehicle registration fee increase from $46 to $158.
The legislature cancelled the increase and Democrats have avoided gas and vehicle increases since. When the Assembly tried to revive a gasoline tax last year, the issue was dropped after polls showed 63 percent voter opposed any increase.
Republican governor Arnold Schwarzenegger destroyed his popularity by pushing through the Proposition 1-A high-speed rail initiative in 2008 that added about 11 cents a gallon to the price of gasoline — for a project now referred to by Bloomberg News as a “fiasco.”
Gov. Brown’s willingness to try raising gasoline taxes by 17 cents a gallon, and on vehicle registration fees by $65, is a sign of the insolvency risk from the exploding cost of California Public Employees’ Retirement System (CalPERS) public pensions. Brown’s draft 2017-2018 budget already includes a $524 million increase for the public pension...
(Excerpt) Read more at breitbart.com ...
Seriously, people need to unass that stupid state.
What prompted you to swim against the tide like that?
141 percent increase in vehicle registration fees
I pay $117 this year so x by 141% = $164.97 + $117= $281.97 for my 2003 Honda Accord. Or do I just add $65 to the $117?
With democrats I expect the higher number.
Is my math correct then how do we recall the governor as we did this to the past Gray Davis over vehicle registration that was far less then this one.
Now to raise taxes to pay for someone’s else’s pension is plain wrong as it steals from my ability to retire with savings. All who vote for this should be at least be fed to the sharks off Catalina island.
Fortunately, most liberal Dems who move to Texas, find that they can't hack this place, and either return to their former utopias, or find more welcoming states to infest.
“This is an issue that republicans can use to expand in California. Give teachers regular 401k plans, not guaranteed by the state.”
HAHAHAHA. You’re talking California. Not a group of sane people.
you approve of socialism for interstates ?
Remember in 1992 when Brown ran for president supporting repeal of the income & payroll tax—& replacing it by a national sales/consumption tax?
A 42% California gas tax increase might make Californians feel virtuously poorer, so there’s that!
Perhaps we should view Fed interest rate increases in percentages, because they also act like a huge tax increase on the economy.
Fed raised its funds rate from 1% to 5.25% from 2004-2006——over 400% in two years during the Bush recovery.
Bernanke claimed he was trying to “slow down the economy THROUGH HOUSING to keep wages from rising....” but inflation didn’t rise over 400% in those 2 years, nor did market interest rates.
Democrats want to spend, so let them tax everybody to pay for it on the state level. One of the things that drove up housing prices in Arizona was Californians fleeing their state for lower tax climate change. They could sell a million dollar home in CA & buy one twice as big in Az for half as much money & almost no property tax—& lower income tax, too. The Federal Reserve is what has the biggest effect on economic growth.
Some people want the Fed to “normalize” interest rates by raising them as high as 5%. Percentage-wise, that’s MORE than 400%.....but even a 42% gas tax increase in California doesn’t reduce their income by 42%—or economic growth by 42%——like when the Fed tightens & raises rates.
Sure I'll pay for all that expensive cali fuel...
Stick it moonbeam I will just fuel up on my monthly ammo component run.
Peanuts compared to what it will cost to bail out MediCAL.
“Given that CalPERS only earned a 2.4 percent investment return in 2015, and just 0.61 percent last year, the 2.75 percent expected investment return may actually not be that conservative.....”
Now I understand why La La Land is such a big hit out there. Note, that the official fantacy rate of 7.5% was reduced to 7%.
After all, their public "servants" are doing such a stunning job for the people of California they deserve it. They are more than worthy of it. Every single billion dollars penny of it. They are worth it.
Naa, who me? I think your idea of setting up PRICE GOUGING of Americans (typically by foreign corporations) through CRONY CAPITALISM DEALS is just wonderful!!!
What on Earth would make you think differently about me?
...and anyway, I have the money for the tolls, so I’m just fine (although I just may have to dial back a few riverboat cruises in Europe in my retirement to compensate).
Let’s HAVE AT IT!!! Maybe if I can get tipped off to the which companies are going to cash-in (and buy their stock), I can more than cover the huge costs of driving!
[ Jerry Brown Wants 42% Gas Tax Hike to Bail Out CalPERS ]
Go for it Jerry. Turn all of California into conservatives with this brilliant move.
Don’t cry for them Venezuela.
Senility
You’re in one of the better parts, despite the proximity to the border. It’s basically a military town at heart. You can still find conservatives in San Diego. I lived most of my adult life there. Then I went to the high desert and finally settled in Palm Springs.
They need you, that’s for sure. Best wishes to you—you are in a remarkably beautiful city. If I had to be in California, I’d be in San Diego.
What area are you in?
Are you kidding me? Their are Fr-er's here well versed in Mutual Funds and ETF's that could probably put together a more diverse portfolio with this risk and double that return.
2.4% in 2015? Oye Vey these investment advisers/managers suck on ice...
price gouging is not a term that exists in capitalism
I’ll agree with you about the crony capitalism issue. How about privatize the interstates this way ?
Every American citizen gets one share in ‘Interstates Inc.’ Stockholders meeting held in 30 days to elect Board of Directors. Director slate is:
Carl Ichan
Wilbur Ross
plus pick from this list
https://ambition.com/blog/entry/2016-5-12-business-team-leader-icons/
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