June 2002

ELECTRONIC EDITION

June 2002

Volume 6, No. 5

SUBJECT		ARTICLE
ECONOMIC STIMULUS		Only Economic Growth Will Solve California’s Budgetary Woes. Jack M. Stewart, president, California Manufacturing and Technology Association, calls for 5-cent reduction in the state sales tax on purchases of manufacturing equipment, and releases conclusions of a Milken Institute dynamic study on the.job-creating impacts of such an economic stimulus.
STATE BUDGET		It's the Spending, Stupid. Tom McClintock, state senator, presents the case of unbridled spending as the prime culprit in California’s budget crisis.
STATE BUDGET		Suspending the NOL: Something Wicked This Way Comes. Greg Turner, Cal-Tax general counsel and legislative director, explains why suspending the net operating loss carryforward deduction is bad tax policy.
TAX AGENCIES		Does the State Board of Equalization Have the Power to Invalidate a Franchise Tax Board Regulation? Chris Micheli, tax attorney with Carpenter, Snodgrass & Associates, lays out the arguments for and against the power of one tax agency to invalidate the regulation of another.
MISUSED AND ABUSED TAX DOLLARS		The Accountability Files – June 2002. This latest Cal-Tax roundup of misused and abused tax dollars in state and local governments in California covers more than $2 billion. Government audits and newspaper articles over about six months are the sources of items ranging from the state’s Oracle Debacle to Sacramento’s golf cart barn fiasco and Alameda County supervisors’ spending tax dollars to learn their personality colors. This is a sequel to last November’s roundup of three years worth of items exceeding $6 billion.

The Cal-Tax Digest is a service of the California Taxpayers' Association located at http://www.caltax.org. For information about this service please contact: karl@caltax.org or visit our subscription page.

Opinions are those of the authors and may not necessarily reflect the views of the California Taxpayers' Association, a nonpartisan, nonprofit corporation founded in 1926 and dedicated to advancing economy and efficiency in government. For further information on Cal-Tax, see Cal-Tax Online (www.caltax.org).

TO BE REMOVED FROM MAILING LIST:
If you would like to be removed from the Cal-Tax Digest mailing list, or any other email distribution of the California Taxpayers' Association, you can unsubscribe by simply replying to this email with the word "UNSUBSCRIBE" in the subject line.