Jul

29

Train Wreck Ahead

Filed Under California, Doodles, Political Participation 

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Beware: Train Wreck Ahead

Beware: Train Wreck Ahead

On Wednesday, July 29th, Governor FAIL signed Executive Order S-15-09 that claims:

“the Commission on the 21st Century Economy (Commission), and the Commission has made excellent progress in its review of the existing tax structure and has identified reforms to make California’s tax structure more aligned with the modern California economy”

“the complexity and far-reaching nature of tax reform necessitates time for thoughtful deliberation, careful analysis and public comment”

“in consultation with the Legislative leaders, I will call a special session in September 2009 to consider the recommendations made by the Commission to improve California’s state tax system.”

The Commission is controlled by Gerald Parsky, a stauch Republican conservative and former Chair of the UC Board of Regents.

The work of the Commission is already in question.

Now, consider the following.

The  Commission lacks several strong progressive tax system thinkers and advocates and therefore a strong alternative perspective is not being forcefully articulated or given significant discussion. Party-based commissions that split 50-50 between Democrats and Republicans are inherently flawed on a representational level because the California electorate is not split 50-50. (44% Democrat, 31% Republican, and 20% Decline to State)

The Commission’s report will serve as the foundation of a Special Session of the Legislature in the fall. Expected near or around the same time, revenue projections/estimates will be released by the Department of Finance that will most certainly show a shortfall and gap that needs to be filled. The  media will report “Revenues Fall Short Again” – “Another Crisis” – “More Cuts Needed?” – “Gov Calls for Major Reform” or what have you.

There will be cries for more devastating cuts from Republicans, then the Governor will come sweeping in with this Special Session saying “We Need Reform” and the Legislature’s deliberations will be based on the Parsky Commission’s work.

No, this cannot happen.

The Legislature, and particularly the Revenue and Taxation Committees in the Assembly and the Senate, need to start NOW in a) conducting hearing after hearing on what the Parsky Commission has already put together, b) bring in experts on tax policy from around the country to provide testimony and c) produce a final report (with or without Republican committee member votes) and publish it the same day the Parsky Commission’s report is released to offer at the very least a stark, progressive alternative.

Without such action, the principal policy making body of the largest state in the Union is going to base their discussions on the work of a Commission that had 7, err I mean 6 meetings, starting at 9am (with the exception of one meeting at 1pm) and is too biased, skewed in the favor of the few.

Comments

4 Responses to “Train Wreck Ahead”

  1. Josh on July 30th, 2009 9:40 pm

    Schwarzenegger calls special legislative session on taxes – http://www.sacbee.com/capitolandcalifornia/story/2067587.html

  2. Josh on July 31st, 2009 10:53 am

    Walters: California tax changes may lie ahead – http://www.sacbee.com/politics/story/2070988.html?mi_rss=State%2520Politics

  3. Josh on July 31st, 2009 11:05 am

    Calif. tax commission faces tricky balancing act

    Supporters say those proposals would reduce revenue volatility and simplify the system, but critics complain that they would shift billions of dollars in taxes from the wealthy to the middle class.

    “Tax cuts for the rich would only serve to exacerbate the income gap,” said Jean Ross, executive director of the California Budget Project, a Sacramento-based nonprofit that advocates for low- and middle-income people. “I don’t think that is in the best interest of Californians.”

    http://www.google.com/hostednews/ap/article/ALeqM5inKAlZiEBjwwxtBeYF9SrIwXg92QD99P9K2G0

  4. Josh on September 30th, 2009 8:37 am

    We knew this was coming.

    Schwarzenegger seeks overhaul of state tax system – The governor calls a special session of the Legislature to consider a plan to cut the number of income tax brackets and replace retail sales and corporation taxes with a new business tax.

    http://www.latimes.com/news/local/la-me-taxes30-2009sep30,0,682850.story?track=rss

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