California voters overwhelmingly rejected the Governor’s fix thebudget or bail out propositions (1A through 1E) and now it is pay back time. The Gov. has proposed the closures of state parks and beaches. This scene is from an old script and must be in a secret book passed from one Governor to the next.
Remember Prop. 13? Of course we do … everyone remembers Old Prop 13. Big Bad 13 was a voter reaction to a greedy state legislature that was sitting on a multi billion dollar state surplus and still wanted more money from California tax payers and especially property owners. After Prop. 13 was passed we experienced cuts in many services that were designed to get even with the voters. Schools were hit hard, libraries hours were cut, other public services cut back and numerous fees were increased.
Now decades later, the teeth have been knocked out of Prop 13 due to the fact that properties are bought and sold fairly often in California. Some one buying a home in the California today will pay 1% of their purchase price in property taxes every year. A home costing $800,000 with carry a property tax of $8000 per year.
So why is California broke? Our economy ranks as one of the top ten of all countries in the world. California is ranked 4th in the amount of taxes we pay. Vehicle Licensing Fees have been raised again and sales taxes are approaching 10%. Where is the money being spent? Maybe it is time for a critical audit of the state’s collection and spending procedures. Maybe it is time to close the special exemptions and loop holes.
For example read about Larry Ellison’s $3,000,000 tax break at http://news.cnet.com/8301-10784_3-9904708-7.html.Mr. Ellison is California’s wealthiest citizen and is listed as one of Forbes 400 wealthiest individuals. He successfully argued that his $200,000,000 Woodside estate suffers from "significant functional obsolescence" and was taxed too high. He got a $3,000,000 tax break. One can only wonder how many of California’s wealthiest residents suffer from similar hardships. Add to this picture the tax money our legislators waste on their sacred cow projects, personal perks and unnecessary commissions and the total is probably mind numbing.
I suggest our state legislators carefully study the budgets of the following states: Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming as these states collect no personal income tax! Tennessee and New Hampshire tax only dividend and interest income. How do they do that? Where do these states get the money to operate? How do they do it?
