Posted on 08/18/2006 1:30:38 PM PDT by FairOpinion
Memorandum From Former California Finance Director Tom Campbell
MEMORANDUM
TO: Interested Parties
FROM: Tom Campbell, former California Finance Director
RE: Angelides' "Tax Plan"
DATE: August 17, 2006
Former California Finance Director Tom Campbell has offered his observations on the Angelides "tax and budget plan" as reflected in the following:
The first observation is that Mr. Angelides’ budget would lower the state’s financial reserve. It would decrease the state’s carry-over balance from $1.63 billion to $500 million. The state constitution requires a budget stabilization account in addition to the carry-over balance. Mr. Angelides has combined the two. His budget would leave California vulnerable to unforeseen budget events by raiding the state's rainy-day fund, which was created just this year through Governor Schwarzenegger's responsible fiscal policies.
This leads to a second issue – using one-time money for ongoing purposes. In lowering the state’s financial reserve by more than $1 billion, the Angelides tax plan spends the money not on one-time projects but on on-going programs. This is fiscally very dangerous. The reserve was filled with tax revenues generated by a growing economy. If the economy slows, and we’ve already spent the reserve on on-going projects, we won’t have the on-going revenue sources to pay for those on-going projects.
The third issue is that the budget relies on money from nowhere – $1.15 billion from vague "efficiencies and government reforms." During the Democratic primary, Mr. Angelides ridiculed Controller Steve Westly's similar proposal as "gimmicks" and "fairy dust." Now, Mr. Angelides is employing the very same tool. And while the figure is oddly specific – $1.15 billion – Mr. Angelides fails to identify a single inefficiency he would target. The document also lists $2 billion from the closure of "corporate tax loopholes," but Mr. Angelides yet again fails to specify those "loopholes" and how much increased revenue he projects from each. He has only promised to appoint a commission to be in charge of identifying such loopholes. Interestingly, this number has come down from the Democratic primary, during which Mr. Angelides said these so-called loophole closures would yield $2.5 billion.
If California is to spend more for new projects, specific sources of money need to be identified. We cannot just rely on vague “efficiencies and reforms.” That’s what you say when you don’t have a plan.
A final point to make is that raising taxes will hurt economic growth. Coming out of the last recession in California, major economic studies identified high taxes in California as a reason jobs fled to other states. Already, California’s corporate tax rates are among the highest in the nation.
The conditions that led to jobs fleeing California in the last downturn have largely been remedied under Governor Schwarzenegger; but they can and will come back if businesses with jobs go to other states because California decides to take tax levels higher.
For more information or to interview Dr. Campbell, please contact the Californians for Schwarzenegger Communications Office at 916/329-6609.
Date: 8/17/2006
Former Silicon Valley congressman Tom Campbell has been named director of the California Department of Finance by Gov. Arnold Schwarzenegger.
Mr. Campbell is currently dean of the Haas School of Business at the University of California, Berkeley. Before assuming the deanship at the Haas School two years ago, he was a law professor at Stanford University for 19 years. Mr. Campbell was a member of the California State Senate from 1993 to 1995 and a Congressman representing the Silicon Valley from 1989 to 1993 and again from 1995 to 2001.
http://www.bizjournals.com/sanjose/stories/2004/11/01/daily42.html
He is a REPUBLICAN and he left his post to work on Arnold's campaign.
http://www.campbellcongress.com/
Conservative Republican Tom Campbell is resuming his bid for the 22nd District's Congressional seat.
This Tom Campbell was a moderate Republican congressman from the South Bay.
That one is a candidate in Texas.
Conservative? Tom Campbell?? Conservative??? Tom Campbell??
BWAHAHAHAHAAHAHAHHAHAHAHA!
Tom Campbell is one of the most arch-moderate RINO liberals to serve as a Republican. He's a pro-abortion, pro-gay, environmentalist. Worst of all he voted AGAINST the Republican Speaker in 1997 in one of the closest contests for Speaker in US history.
Where the h*ll do you get off calling him a conservative?????
Hey Elk
Tell us how you really feel!
Oh, sorry. Thanks for the correction.
But this Tom Campbell is still a Republican.
Got it
ROFL! Any old "Conservative Tom Campbell" will do to sell your koolaid, huh?
Notwithstanding that this one happens to be in TEXAS!
And that madam, is the problem. The problem with Ton Campbell on the California Topic and the problem with the FairOpinon account on the California topic.
Both are, please excuse my French, moderates from the Bay area. Neither are well received by conservatives.
Different Tom Campbell.
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