December 2001

ELECTRONIC EDITION

December 2001

Volume 5, No. 10

SUBJECT		ARTICLE
TRANSPORTATION		Proposition 42. Traffic in California is bad, and getting worse. For California businesses, traffic congestion is a matter of dollars and cents. Proposition 42 on the March ballot means safer roads, traffic relief – and no new taxes. By Allan Zaremberg, president, California Chamber of Commerce.
STATE BUDGET		Smart Response to the State Budget Deficit – Faster Economic Recovery. The state’s $80 billion general fund has a projected deficit ranging from $8 billion to $14 billion over the next 18 months, according to various forecasts. Some responses lead to additional problems and must be avoided. There are also opportunities for state and local policy-makers to make the state more competitive for jobs and still meet priority needs of Californians – without raising taxes. By Larry McCarthy, president, California Taxpayers’ Association.
STATE BUDGET		Taxpayers’ Perspective of the Budget Problem. This is a package of suggested responses to the state’s looming budget deficit, ranging from deferred spending on lower-priority programs to accounts of waste in state and local government. By the Cal-Tax Staff.
STATE BUDGET		Economics and Psychology Needed to Explain Taxpayer Behavior. Taxpayer behavior during the current economic downturn suggests a merger of the disciplines of economics and psychology. With unemployment rising and income growth slowing, it is logical to assume there would be a parallel drop in earnings and consumption. However, as taxable income dips, sales tax revenues come in above projections. By David R. Doerr, chief tax consultant, California Taxpayers’ Association.

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