Spending

Budget Process Begins in Capitol

The Senate Budget and Fiscal Review Committee met January 19 for a hearing on the governor's 2012-13 budget, but took no action on the spending plan. Senator Roderick Wright questioned whether the revenue levels anticipated from the governor's proposed income tax increase on high-income earners are realistic. He indicated that there has been an "exodus" of taxpayers from California, and said these taxpayers are the high-income earners. He also questioned the wisdom of the state's overreliance on their incomes as a source of revenue, given their volatile nature. Read more

News and Highlights Analysis and Commentary Taxpayers Resources

Governor Uses State of the State Speech to Reiterate Call for Tax Increases

In the second State of the State Address of his current term, Governor Jerry Brown on January 18 touted his tax increase initiative and budget cuts, saying, "Neither is popular, but both must be done." Although the governor's budget proposal calls for a 7 percent increase in expenditures, he said he is "determined to press ahead … with substantial budget cuts." Read more

California Lost 947,000 Jobs In Five-Year Period

From 2006 to 2011, California lost approximately 947,000 jobs – more than any other state in the country – according to the U.S. Bureau of Labor Statistics. This represents a drop of 6.26 percent of the state's jobs, the Sacramento Business Journal reported.

Nearly Half of Higher-Ed Students Have Fees Waived Or Paid With Grants

With the debate about recent higher education tuition increases raging, a new report from the Legislative Analyst's Office concludes that "nearly half of all undergraduates at California's public colleges and universities receive grants or waivers that fully cover education fees."
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L.A. County Saved Millions By Focusing on Efficiency

Ever dollar of waste that can be eliminated is like a dollar of new revenue, without the need for tax increases. Los Angeles County announced that it has saved $218 million since early 2009 by focusing on eliminating waste and improving efficiency. Changes included everything from buying better light bulbs and disconnecting unused phone lines to improving management of a county-run health program. Read more

Success of 49ers Should Increase Tax Revenue

The success of the San Francisco 49ers football team – not foreseen by most football experts when the season began last year – likely will add significantly to state and local tax coffers. Read more

Delays Cost Los Angeles $23.1 Million in Revenue

Los Angeles City Controller Wendy Greuel reports 12 that untimely approval of permits by the city's Bureau of Street Services for advertising on "street furniture" (bus stops, newsstands, public toilets, etc.) led to $23.1 million in lost financial opportunity for the city. She also warns that an additional $57 million could be lost if city officials do not work to resolve outstanding issues. Read more

When Are Restaurant Tips Subject to Sales Tax?

Restaurant tips were at the center of two sales tax appeals heard by the State Board of Equalization during recent meetings. While most diners consider tips a reward for service, the BOE maintains that suggested tips added to a restaurant bill are part of the selling price of a meal, and therefore are subject to sales tax. This is the case even if the tip can be changed by the diner, according to the BOE's regulation. Read more

California's Public Employee Pension Plans Face Shortfall Of $500 Billion, Study Says

The pension plans for California's government workers face long-term shortfalls as high as $500 billion, according to a study by the Stanford Institute for Economic Policy Research. Read more

Poll: Voters Overwhelmingly Support Proposition 13

A new Field Poll shows that Proposition 13 remains as popular with California voters as it did when it passed in a landslide in 1978. CalTax President Teresa Casazza said: "Voters understand that Proposition 13 is the right policy choice for California." Read more

 

 

 

 

 

 

 

 

 

 

 

 

Dan Walters: Unemployment Tax Increase Looms

Columnist Dan Walters of The Sacramento Bee writes: "Capitol politicians … will wrestle with a hefty increase in payroll taxes on employers to prop up the insolvent Unemployment Insurance Fund." Read more

Will "Soak the Rich" Tax Policy Encourage Wealthy Taxpayers to Relocate?

Will the threat of new soak-the-rich proposals accelerate the migration of wealthy taxpayers out of California, and what effect would this have on state revenue? How many high-income California taxpayers would have to move out of the state for the soak-the-rich proposal to be unproductive? Read more

CalTax Fact Sheet: Split Roll Initiative Would Devastate California's Economy

A recently filed "split roll" property tax initiative would undo Proposition 13 protections for businesses in California, bringing back an unpredictable method of assessing property taxes and dramatically raising taxes on employers, making it even harder for small businesses to survive. Read more

CalTax Study Finds No Evidence of Shift in Property Tax Burden

CalTax research, based on statistics from the Board of Equalization, shows that there is no evidence that the property tax burden has shifted from business and non-homeowner property subject to Proposition 13 to homeowners. Proposition 13 also made the property tax stable and predictable for property owners. Read more

What Proposition 13 Did

Proposition 13 set a maximum rate for the property tax, and removed guesswork, opinion and chance from the determination of a property's assessed value — the value upon which the tax rate is levied. Read more

Dan Walters: Data Differ Greatly in California Property Tax Debate

Columnist Dan Walters of The Sacramento Bee discusses CalTax’s property tax research, which found that under Proposition 13, property taxes on business and non-homeowner property have increased slightly faster than taxes on owner-occupied homes. Read more

CalTax Voting Record for the 2011 Legislative Session

The California Taxpayers Association has released its 2011 Voting Record, providing Californians with an important measurement of how their representatives in the Legislature acted on major tax and fiscal legislation. Read more

Sales Tax on Services: A Disservice to California

Proposals to tax services (advertising, babysitting, car-washing, painting, etc.) raise many concerns for taxpayers. This CalTax paper explains some of the negative impacts a services tax would have on Californians.

Gina Rodriquez: With 2.1 Million Californians Out of Work, a Property Tax Increase Is the Last Thing We Need

Efforts to undo Proposition 13's property tax protections are getting more attention. The biggest threat is AB 448, which would take a big step toward this goal by repealing Proposition 13 protections for employers, even as the state struggles with a 12 percent unemployment rate. Read more

CalTax Fact Sheet on Expansion of Local Taxing Authority

Earlier this year, a legislative proposal sought to dramatically alter California's tax structure by significantly expanding new taxing authority to counties, school districts, community college districts and county offices of education. Click here to read CalTax's fact sheet on the proposal.

Government Can Improve Efficiency and Save Billions, CalTax Reports

A new CalTax Research Bulletin finds that state and local government can save more than $3.4 billion by improving efficiencies and reducing fraud. "Making Government Work – How California Can Improve Efficiency and Reduce Fraud" uses audits and other documents released in 2010.

CalTax Research Bulletin:

Tax Policy Decisions and the California Economy

Good tax policy improves the economy and provides equity among taxpayers. Tax incentives can be designed to create a better climate for entrepreneurs, innovators and job seekers. Other tax policies can be effective tools for providing equity to taxpayers. Read the full Research Bulletin

Waste report coverCalTax Research Bulletin: State Has Wasted $18.9 Billion

State government waste, fraud and mismanagement has cost California taxpayers $18.9 billion in the past 10 years. "Every penny of waste that is stopped is like a penny of new revenue," CalTax President Teresa Casazza said. Read more

 

Broad-Based Tax Measures Proposed for November

Click here for a quick-reference guide to the broad-based tax initiatives that have been proposed for the November 2012 general election ballot.

Tax or Fee? CalTax's Proposition 26 Compliance Guide Provides the Answer

CalTax has released "Understanding Proposition 26: A Sponsor's Guide to California's New Tax Structure," a guide for taxpayers and government agencies to ensure that the Stop Hidden Taxes Initiative is implemented correctly. Read more

California's Tax Machine coverCalifornia's Tax Machine: Invaluable Resource on State's Tax Policy

CalTax Chief Tax Consultant David R. Doerr's book chronicles the birth of assessments on property, income, sales, utilities, vehicles, banks and corporations, inheritances, oil, alcohol, tobacco and more. It includes must-read chapters on the landmark property tax initiative Proposition 13, detailing the causes and effects of the taxpayers' revolt. Read more

Locate Tax Legislation

Need to locate a tax-related bill considered by the California Legislature? Former legislative tax consultant Martin Helmke's spreadsheets include bills from 1995 to the present. Read more

Local Tax Elections

Click here for a table that includes results of this year's local tax elections in California, along with information on tax measures that will be decided in local elections later this year.

 

The California Taxpayers Association is a non-partisan, non-profit organization founded in 1926 to protect taxpayers from unnecessary taxes and to promote government efficiency. We serve our members through research and advocacy on significant tax and spending issues in the legislative, executive and judicial branches of government. Learn more about CalTax

Your Help Is Needed
To Stop Excessive Government Spending


In November, Californians will have an opportunity to bring discipline to the state government's use of our tax dollars, so we won't have to keep going through boom-and-bust cycles that result in budget deficits and pressure for higher taxes.

CalTax, the Howard Jarvis Taxpayers Association and the Small Business Action Committee recently introduced an initiative to keep the Legislature from approving excessive spending, and to allow the government to grow.
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