Bill expanding local tax authority is step toward fiscal abyss

Contra Costa Times ^ | 6/4/11 | Contra Costa Times editorial

[SmithL]

CALIFORNIA'S system of state and local taxation is overly complex and often dysfunctional. Instead of devising reforms to improve the way governments raise revenues, state Senate leader Darrell Steinberg has come up with legislation that would make taxation decidedly more complicated, unfair and costly for Californians.

His Senate Bill 653 would vastly expand the taxing authority of California's 58 counties, county school districts and community college districts in the state.

If SB 653 becomes law, counties and school districts would be allowed to impose a local personal income tax up to 1 percent of state taxable income. The bill authorizes those taxes to be levied retroactively to Jan. 1, 2011.

Californians could be paying income taxes not only to Washington and Sacramento, but to their county and one or more school districts.

The counties and school districts also would have the authority to levy their own sales taxes beyond the current local limit of 2 percent. This provision would create a patchwork of widely varying sales taxes well in excess of 10 percent for many Californians.

Even worse, SB 653 would permit counties and school districts to create countywide excise taxes on any products or services purchased in a county. Excise taxes are levies on goods and services, paid by merchants or manufacturers, with the cost passed on to consumers. In effect, this would not only expand the taxing authority of local governments, but would create an entirely new tax on services with no set limits.

There's more: Local governments would be able to impose their own vehicle license tax up to 1.35 percent of the vehicle's value on top of the current car tax.

Counties and school districts with petroleum reserves would be authorized to impose a 10 percent oil severance tax on the gross value of the petroleum.

[I am Richard Brandon]

"Bill expanding local tax authority is step toward fiscal abyss"

Liberal (Progressive/Democrat) insanity in all its glory!

[Brilliant]

The best thing that could happen is that CA goes bust. The libs need a wake up call. They won’t listen to reason. They only thing they react to is hardship.

[PowderMonkey]

"The best thing that could happen is that CA goes bust. The libs need a wake up call. They won’t listen to reason. They only thing they react to is hardship."

Two words: electoral votes. The current clown in the White House along with all those fools on the Hill will never let that happen. They'll wreck the U.S. economy first, rather than lose their grip on power. This will not end well.

[itsahoot]

Here are two words for you as an alternative. Popular Vote.

The idiot Fred Thompson joined this effort to subvert the Constitutionq this week.

[blueunicorn6]

Gimmegimmegimmegimmegimmegottopaytoenjoyourclimategimmegimmegimmegimmegimme

[wizkid]

The Late Great Golden State

[Bernard Marx]

This is total insanity unleashed! The day I have to start paying a tax to the teacher's union is the day I leave this totally screwed-up state. Steinberg is looking after the state employee unions per his CV:

"Steinberg was born in San Francisco on October 15, 1959. He earned a BA in economics from UCLA and a JD from UC Davis Law School. He served as an employee rights attorney for the California State Employees Association for 10 years before his work as an Administrative Law Judge and mediator. Steinberg served on the Sacramento City Council from 1992 to 1998."

[phockthis]

sfl

[Popman]

I sort of wish this will pass....the longer CA is plugged into life support the longer the agony will be

Tax every citizen and business entity to the literal death and the faster a new CA can arise Show the country how liberalism killed CA

[Pearls Before Swine]

A percent here, a percent there...

In big-government states, in addition to the Federal income tax, you have larger sales taxes (6 to 8%), higher state income taxes (say 6 to 8%). If you’re really unlucky, you’ll have a city tax (maybe 2 to 3%), and now they want to invent a new county tax. So, in a high tax state, your marginal NON-IRS taxes can be 20%.

Obama wants to raise the marginal top tax rate on ordinary income to close to 40%.

He’s adding a 3.8% Obamacare tax.

There are deduction phaseouts for deductions at the higher income levels, so you pay tax on tax.

So, 70% effective marginal tax rates (more in certain brackets) are around the corner.

Liberals want to tax “the rich.” Is it any wonder the rich are pushing back, or at least thinking twice about hiring more people to expand their businesses?

I expect that the next push will be for a wealth tax-direct confiscation of accumulated savings and property, and I predict it will show up at state and Federal levels. Oh, yeah, and this will be in addition to a push for the VAT that works so well in Europe.

I’m so glad I’m free.