CA: Unbalanced tax system dooms us to feast-or-famine cycle

Sac Bee ^ | 12/2/02 | Dan Walters

[NormsRevenge]

So far, California's politicians have reacted to the deepening state budget crisis with the same expedient attitude that created the mess in the first place.

The state fell into this seemingly bottomless pit because Gov. Gray Davis and lawmakers of both parties made long-term spending and tax-cut commitments based on a short-term spike in revenues, largely income taxes on stock options and capital gains in the highly volatile high-tech sector of the economy.

[NormsRevenge]

Oh My!!

[RKV]

How's about the State eliminate regulations and cut the need for regulators? How's about we stop paying for illegals to go to our schools? Maybe we could get the Feds to help get them out and keep them out?

[NormsRevenge]

Ping

[Dog Gone]

Dan Walters was careful to blame this equally on both parties, even though the liberals have been running California for years.

The problem isn't the taxation, though. California collects plenty of taxes. Other states aren't in this predicament, and some of those don't even have an income tax.

The problem is spending. Walters doesn't say it, but what he's asking for is a tax increase.

[randita]

ping for some of the truth, but still not enough

[RKV]

Dan had to get the obligatory dig at Prop 13 in.

"The passage in 1978 of Proposition 13, which imposed tight limits on property taxes, began to skew the system by shifting more of the financial burden to the state and making the overall revenue stream more dependent on sales and income taxes, which produced roughly equal amounts of money."
I have read this guy for years, and he does have half a clue. Just not enough of a clue to REALLY get to causes instead of focusing on effects. Less government requires less taxes. Also has the beneficiary effect of reducing the corruption associated with selling governmental favors.

[NormsRevenge]

As Davis' own budget documents point out, Californians reporting more than $100,000 in income account for just 10 percent of state tax returns but a whopping 75 percent of income taxes.

Ouch!

[goldstategop]

Dan Walters is too optimistic. Expecting liberals to fix a system that in good years allows them to buy up every voting bloc in sight is like asking them to commit Arkancide. Tax reform just won't happen in California, unless its to raise taxes. That's about all we can expect this year and the next in the way of restructuring the financial system in this state.

[NormsRevenge]

I find it interesting to watch the spin coming out of the spinboxes, don't you? Who made sure we got stuck with this mess? Let the media look at itself and the job it didn;t do then , and only now, does reluctantly.

Only in a country that allows unabashed freedom of the press, can you find so many imprisoned minds, stuck in the dark ages of taX and spend.

The govt media numbnuts complex. BeWare! ;-)

[RKV]

Selling my vacation home at Big Bear and buying one on the Nevada side of Lake Tahoe sounds better all the time if you get my drift.

[goldstategop]

Yup. The Silver State has no state income tax.

[RKV]

ALMOST makes me glad Red Davis got re-elected. TANSTAAFL.

[seenenuf]

My heart bleeds for poor Governor Davis. Bo-hoo. Poor guy can't win for winning. And now, his constituants, who
costs the state a hugh chunk of the budget pie, might
get a little uppity when their programs are affected. I
don't suppose they give a hoot or identify with capital
gains taxation. So when their teat drys up, maybe they will vote Pubbie next time. The pendulum could swing with a vengeance.
The Dems ruined this state with botched energy deregulation - and the California greenies have not yet
been sufficiently blamed for same. Dan Walters reports,
but the this blame for the red ink is one more spinning smoke screen to cover the DamnedDems lying butts.

[RKV]

California was number 6 in state tax burden in 2001.
There is enough money to do what needs doing if we cut regulation and cut regulatory burden. We can't seem to set priorities with all the favors being dished out, can we?

http://www.taxadmin.org/fta/rate/01taxbur.html

[afraidfortherepublic]

"The passage in 1978 of Proposition 13, which imposed tight limits on property taxes...

I moved out of California, the state of my birth, in 1973 -- too soon to benefit form Prop 13. However, I have always wondered about the inequities that were sure to develop over it.

My understanding is that property taxes were frozen at the 1978 level, unless you sold your home. As people moved out of job changes and other necessities, the transfer of property titles would raise the taxes on their properties while keeping their neighbors at the 1978 level. Eventually this would produce a wide disparity within a neighborhood as to the level of taxes each family pays.

I'm told by relatives that there is a further disparity because if you move within the same county, you can take your low rate with you. My question is:

When are the tax wars going to break out -- neighbor against neighbor? Or do I have this all wrong?

I know that my mother pays a ridiculously low property tax (about $250). Good for her -- she's 89. But what about her neighbors who have not lived there as long as she?

Please, someone who is still a prperty owner in CA clear this up for me.

Over the years I have watched friends stay in homes long past their needs, just to keep their low property tax rate.

[Ernest_at_the_Beach]

calgov2002:

calgov2002: for old calgov2002 articles. 

calgov2002: for new calgov2002 articles. 

Other Bump Lists at: Free Republic Bump List Register

[RKV]

You have most of the salient facts right. Real estate prices are much higher here than in other parts of the US, and property tax revenues would be much higher without Prop 13. As I stated above we are a high tax state (#6 in the US) so whether I pay property taxes or sales taxes or income taxes doesn't really matter.

[Dog Gone]

That is a fascinating link you provided. Texas is 48th in per capita taxes. I knew we had it good, but I didn't realize it was that good.

California has a budget shortfall this year of about $1000 per capita. They're not going to get that amount from the recent immigrant population, so brace yourselves.

[Maximum Leader]

Interesting post.

I wonder what effect Prop. 13 has had on the value of real esate in CA (I'm sure there is a PhD thesis about this somewhere on the web).

This Walters column is curious because by critizing income and sales taxes, implicitly he's endorsing higher property taxes but he doesn't come out and say how that's even possible with Prop. 13.

[Grampa Dave]

Walters inspite of his opeds is a left wing liberal.

He has hated prop 13 before it passed and has worked to slam and belittle it since it was passed. He is a progressive hiding as a moderate or a fiscal conservative.

If we did not have Prop 13, only the elites could own property in Kalifornia.

We need a son of Prop 13, which makes it illegal to vote on any bond issue or for any increase in any taxes unless you are a property owner.

If Walters and the other progressive side up with the Burton;s and Davis to do away with Prop 13, we are doomed in this state unless we vote them out of office.