Contact: Ron Roach (916) 441-0490

Cal-Tax opposes anti-taxpayer measures on Nov. 5 ballot

Cal-Tax's Board of Directors also opposes initiatives that would drive up health care costs and immunize lawyers against limits on their fees, as well as a measure that would make the state's courts a Mecca for securities lawsuits. The board also opposes an initiative to increase the minimum wage.

Meanwhile, Cal-Tax has endorsed Proposition 218, the initiative designed to reinforce voters' rights to decide whether they should pay higher taxes, and Proposition 213, a measure that would tighten laws affecting drunken drivers.

Directors also endorsed all three bond measures, including propositions to provided needed funding for clean water and criminal justice facilities.

At meetings in September and June, Cal-Tax directors decided to:

• Support Proposition 204, the $995-million Safe, Clean, Reliable Water Supply Act, which Cal-Tax believes is important for California's economic development.
• Support Proposition 205, the $700-million Youthful and Adult Offender Local Facilities Bond Act. Cal-Tax considers the adequate criminal justice facilities necessary for public safety, which is an important quality-of-life and business climate issue.
• Support Proposition 206, the $400-million Veterans' Bond Act. These bonds are self-liquidating through the Cal-Vet Program and have not imposed an obligation on taxpayers.
• Oppose Proposition 207, the initiative that prohibits restrictions on the right to negotiate attorneys' fees. Cal-Tax has consistently supported tort reform as a business climate issue, and this initiative, sponsored by trial lawyers, is an attempt to prevent meaningful reform through the legislative process.
• Make no recommendation on Proposition 208, one of two rival initiatives dealing with campaign finance limitations (see opposition to Proposition 212).
• Make no recommendation on Proposition 209, the prohibition against discrimination or preferential treatment by public entities.
• Oppose Proposition 210, which would increase California's minimum wage. This measure would hurt small businesses. It would increase administrative burdens by creating two more wage changes on top of those already required under new federal law.
• Oppose Proposition 211, which would make it easier to file securities law claims in California courts. These are the same kinds of cases that have been disallowed in federal courts by an act of Congress. This initiative is sponsored by a lawyer who specializes in such cases, and would create a hostile environment for businesses, particularly in the high-tech area.
• Oppose Proposition 212, an initiative to limit campaign contributions and spending. Cal-Tax took no position on Proposition 208, but was compelled to oppose 212 because it would result in increased taxes on individuals and groups who advocate issues before legislative and governmental regulatory bodies. Proposition 208 does not contain this particularly egregious provision.
• Support Proposition 213, an initiative that would deny pain-and-suffering claims for uneconomic losses to drunken drivers and uninsured motorists. It also would deny felons rights to recover damages for injuries incurred during the commission of a crime.
• Oppose Proposition 214, an initiative to regulate the health care industry. This measure would increase costs, requiring cuts in other programs or higher taxes.
• Make no recommendation on Proposition 215, which would allow medical use of marijuana.
• Oppose Proposition 216, a health care regulation initiative that rivals 214. This measure is opposed for similar reasons.
• Oppose Proposition 217, a retroactive tax increases that would reimpose 10% and 11% personal income tax brackets. This initiative would raise taxes on small business owners who pay personal income taxes, not the bank and corporation tax.
• Support Proposition 218, which would require voter approval of local government taxes. This measure is needed to protect taxpayers from local governments that have devised methods of skirting vote requirements of voter-approved initiatives. It also is needed so that residents of charter and general law cities are treated equally.

Cal-Tax, founded in 1926, is a nonpartisan research and advocacy association, primarily of business members, with the mission of protecting taxpayers from unnecessary taxes and promoting efficient, quality government services.

(Note: Detailed descriptions and analyses of the 15 November 5 statewide ballot propositions are available on the Internet via "CalTax Online" -- http://www.caltax.org)