Uh, yeah. Right. Just call the car license tax a "user fee" that's been "rebated", not reduced, and you can take away the "temporary" rebate on the "fee", and you haven't raised taxes.
FREEP THIS POLL (Gray Davis Job Performance)
Crappy!
In this case, the term "live" is used loosely.
At what cost? Billions and billions of dollars we now have to pay back over the next 20 years; a surplus of energy that we bought at high prices that we are now selling for pennies on the dollar.
There is already CA state law that if the budget is busted the sales tax automatically raises. Davis blew the budget and the taxes for sales did trigger and the TAXES were raised. DUE TO DAVIS! - WE NEED TRUTH POLICE AROUND THIS GUY WHEN EVER HE OPENS HIS MOUTH.
May God throw this pathetic power-monging personality-disordered ego-maniac out of office come November.
Thank you for your e-mail expressing your opposition to re-instating the vehicle license fee tax to previous levels as way to meet our state's budget shortfall. I appreciate your taking the time to contact me with your important concerns.
As you may know, the State of California is facing a budget shortfall estimated at $12 billion. With that in mind, Governor Gray Davis, the legislative leadership, and other budget writers are searching for ways to reduce current year spending as well as outlining reductions for the 2002-03 Fiscal Year, which beings on July 1. For the most part our budget woes stem from a slowdown in the overall economy. In fact, most of the 50 states are experiencing similar fiscal crisis. What hits California especially hard is the current lack of large capital gains tax receipts that our coffers enjoyed over the last five years. During the late 1990's many California residents saw their stock portfolio values jump by leaps and bounds. When these individuals sold their holdings, they cashed-in huge profits which, in turn, were taxed. Now that the stock markets have dropped and the dot com bubble has burst, there is simply not as much capital gains revenue flowing into the State Treasury. Compound that with a slowdown in sales tax receipts and income tax levels slipping, it does not take long to see why our state faces a huge shortfall.
I expect that most of the shortfall will be bridged by significant reductions in state spending. I expect to support Governor Gray Davis' call to eliminate several billion dollars in spending for the current year - a dramatic and unprecedented act since these monies were approved in July. However, by reducing the amount now, it will not be part of our base, and thus won't contribute to our shortfall in future years.
For the last 70 years, California has had an "in-lieu property tax" on cars
- included as part of the fee paid by motorists each year to register their vehicle with the DMV. The tax proceeds are routed to counties and cities. Several years ago, the Legislature and the Governor slashed the fee which motorists pay. The State has been rebating the car tax to consumers, but giving cities and counties so-called "backfill" money from the state's General Fund to make up for the lost revenue. With the General Fund facing a huge hole this year and in the coming budget year, the worry begins to settle in amongst local government leaders that the level of the tax will remain the same but the "backfill" from the State will be reduced or eliminated.
As you pointed out, some members of the Legislature have already proposed returning the vehicle license fee to its original level - 2% of the amount of the purchase followed by a reductions schedule allowing for depreciation. To date, I have not advocated that is exactly what should be our best course. Yet, I believe raising revenues, coupled by reductions in spending, must be on the table if we are to be honest about getting through our fiscal predicament. Re-setting the car tax reductions should be considered. Raising student fees at our colleges and universities must be an option. And, some special fees paid by special groups must be examined. Unfortunately, none of these are easy. But keep in mind, during the recent bountiful budget years, reductions in taxes and fees occurred. For example, the sales tax was lowered for a year, the car tax was reduced by two-thirds, capital gains taxes were eliminated on the sale of one's principal residence, fees to visit our state parks were slashed, and tuition fees at state-sponsored colleges have remained constant despite the costs to attend private colleges have dramatically increased.
Again, thank you for contacting me.
Sincerely,
JOE NATION
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