Three broad-based
initiatives that would significantly change budgeting and taxation in
California qualified this week for the November ballot. The initiatives include
a measure co-sponsored by Cal-Tax to stop hidden taxes (those that are
disguised as "fees" or "charges"); a union-backed
initiative that would increase taxes on businesses by repealing recent business
incentives; and an initiative that would allow the Legislature to pass the
budget – and increase taxes included in budget trailer bills – by a majority
vote.
The deadline for
qualifying initiatives for the November ballot was June 24, and the secretary
of state reported that nine initiatives will be on the ballot, along with a
major water bond placed on the ballot by the Legislature.
The effort to make
it easier to raise taxes by lowering the legislative vote threshold (09-0057) is backed
by government employee unions. The initiative would allow the state budget to
be passed by a majority vote, rather than a two-thirds vote, and also would
allow this lower threshold for any taxes included in a budget trailer bill. The
initiative also would eliminate the right that voters currently have to repeal certain
types of legislation through the referendum process.
Cal-Tax President
Teresa Casazza said: "Politicians and special interests responsible for
our massive budget deficit know that Californians don't support increased taxes
and spending, so they're promoting this misleading ballot measure to raise
taxes and take away our constitutional right to reject bad legislation at the
ballot box."
The Stop Hidden Taxes Coalition,
co-chaired by Cal-Tax and CalChamber, is leading the effort to defeat this
proposal. The coalition includes a large number of taxpayer groups, business
organizations and small business owners.
In related news:
Stop Hidden Taxes Initiative Qualifies for
November Ballot. The
initiative to stop hidden taxes (09-0093) would
require a two-thirds vote of the Legislature to impose or increase taxes
disguised as "fees," "charges" or other similar exactions.
The measure continues to allow for legitimate user fees to be approved by a
majority vote.
Supporters say the
initiative will stop the most egregious attempts by legislators to circumvent
Proposition 13's two-thirds vote requirement for tax increases. For more
information on the initiative, visit www.nomorehiddentaxes.com
Cal-Tax President
Teresa Casazza said the initiative is very important to taxpayers. "The
ongoing behavior of disguising taxes as fees at both the state and local level
must end," she said. "If allowed to continue, these tax-like fees
will inappropriately add to the tax burden faced by taxpayers. It will cost
taxpayers more when they take their families out to dinner, it will cost
taxpayers more every time they fill up at the pump and it will cost taxpayers
more when they register their vehicles."
The measure has
obtained a wide range of support from such groups as the CalChamber, the
California Manufacturers and Technology Association, the California Business
Properties Association, the National Federation of Independent Business, the
California Grocers Association, the California Retailers Association, the Wine
Institute, and the Howard Jarvis Taxpayers Association.
Tax Hike On
Employers Will Be on November Ballot. The California Teachers Association was successful in qualifying an
initiative (09-0058) that
would increase taxes on employers by repealing business incentives approved in
recent budgets. The initiative would prohibit businesses from carrying back
losses, would cancel a recent law intended to increase utilization of
economy-stimulating tax credits, and would require a corporation's tax formula
to be based on payroll (making it more expensive to expand or create jobs in
California, and creating a disincentive for offering pay raises to California
workers).
Cal-Tax President
Teresa Casazza said voters should reject the Jobs Tax Initiative. She said:
"This measure would tax companies for creating new jobs and give the money
to Sacramento politicians without guaranteeing that one penny will reach our
classrooms. Combined, the impact of the Jobs Tax Initiative would be to
encourage companies to expand outside California, force some small businesses
to close shop and stifle job growth in the very industries we are counting on
to help pull California out of the recession and provide tomorrow's high-paying
jobs."
A broad-based
coalition called Stop the Jobs Tax has been set up to
oppose the measure. The coalition includes many local chambers of commerce,
taxpayer associations, businesses, high-tech employers, green job creators, as
well as TechNet, TechAmerica, the California
Manufacturers and Technology Association, California Building Industry
Association, the Silicon Valley Leadership Group, CalChamber, and Cal-Tax.
Initiative to
Repeal Independent Redistricting Qualifies for November Ballot. An initiative (09-0107) to
repeal the independent redistricting process approved by voters in 2008 has
qualified for the November ballot. If approved, the measure would authorize the
members of the Assembly and Senate to draw their own districts, as well as the
districts for Congress and the Board of Equalization – re-establishing the
conflict of interest that was eliminated by the creation of an independent
redistricting commission.
As of 5 p.m. on June
24 – the deadline for measures to qualify for the November ballot – the
secretary of state's website did not show this measure as qualifying. Later in
the evening, however, Secretary of State Debra Bowen announced that the measure
had qualified.
Initiative to Suspend Global Warming
Legislation Qualifies. An
initiative (09-0104) that
would suspend state laws on global warming will appear on the November ballot.
If approved by voters, the initiative would suspend implementation of AB 32, the landmark 2006 legislation
that requires the state to reduce its emissions to 1990 levels by 2020, until
unemployment in the state is reduced to 5.5 percent or less for four
consecutive quarters.
Cal-TaxReports, June 28, 2010
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Association.
All Rights Reserved.