State Budget: Millionaires Tax for November Ballot?

Guv Newsom raised the cost to business for Workers Comp by $11.2 billion, by changing the rules—without a vote of the Legislature.  The Democrats support a Split Roll tax, to kill off commercial and industrial property and cost tens of thousands of jobs.  Now the same folks want to create yet another “millionaires tax”.

Lorena Gonzalez (D-San Diego), who chairs Assembly Appropriations and chairs the powerful Latino Legislative Caucus, this morning tweeted polling results from David Binder Research and commented:

In order to reduce the outrageous level of inequality that exists in America today and to rebuild the disappearing middle class, we must support working families with a new tax on millionaires.

In a recent poll, 70% of likely CA voters support a #MillionairesTax.

This is the same person that killed hundreds of thousands of Californians jobs via her bill AB 5.  Gonzalez is trying to make sure she kills more jobs than a Depression.  Watch as more wealthy people, people that invest in their community via charity and businesses, move to another State—making our deficit worse.

State Budget:  Millionaires Tax for November Ballot?

Scott Lay, The Nooner,  6/8/20  

STATE BUDGET: For the Bee, David Lightman and Sophia Bollag report that, with one week left for the Legislature to approve the state budget or face loss of pay, there are few signs that federal aid to the states are forthcoming soon — if at all. While they take different approaches, both Governor Newsom and majority Democrats count on federal assistance to avoid billions in cuts to state programs.

In Washington, the House, Senate and President Donald Trump need to agree on a package before anything can become law. Though there are some talks there’s little evidence of progress towards an agreement.

The House, which last month approved a $1 trillion state and local government aid package, has scheduled no votes until June 30.

In the Senate, Majority Leader Mitch McConnell has urged a pause in stimulus legislation, and last week outlined a June schedule that does not include any such package. The Senate plans to spend the month considering nominations and major defense as well as land and conservation bills.

Conservative, liberal and moderate economic and policy experts are largely unified in their plea for more help as most states face sudden, huge deficits that by law have to be addressed.

“State and local governments desperately need financial support,” said Mark Zandi, chief economist at Moody’s Analytics.

States and cities got a total of $150 billion in a March 27 bill. California’s state government is slated to receive $9.5 billion, with its larger cities getting $5.2 billion.

The National Governors Association estimates that states need about $500 billion, a number largely in line with mainstream economic models. Sens. Bob Menendez, a New Jersey Democrat, and Bill Cassidy, a Louisiana Republican, are sponsoring legislation to provide that money.

Their plan, co-sponsored by two other Republican and two Democratic senators, would allow the money to be used for a variety of services, including expanding testing capacity and contact tracing, provide further assistance to residents, local hospitals, small businesses and schools, and “maintaining critical services.”

For CalMatters, Dan Walters looks at the gap between the Legislature and Governor Newsom.

Both Newsom’s budget and the Legislature’s count on more than $4 billion from cutting back, but not eliminating, a couple of corporate tax breaks, but that’s pocket lint if the deficit is, as both budgets assume, $54 billion. There’s a lot of sentiment among Democratic legislators for a bigger tax increase of some kind, but there’s also concern that if enacted, it could backfire politically if seen as a drag on an already battered economy.

The only certainties are that a budget deal of some kind will be made by June 15, to protect legislators from losing their salaries, and that whatever they enact will be changed repeatedly over the next year as circumstances evolve.

Lorena Gonzalez (D-San Diego), who chairs Assembly Appropriations and chairs the powerful Latino Legislative Caucus, this morning tweeted polling results from David Binder Research and commented:

In order to reduce the outrageous level of inequality that exists in America today and to rebuild the disappearing middle class, we must support working families with a new tax on millionaires.

In a recent poll, 70% of likely CA voters support a #MillionairesTax.

I do too.

The poll of 600 was taken by telephone and online May 19-21 and acknowledges small sample sizes in the Sacramento Valley, San Joaquin Valley, Central Coast, and Inland Empire. The 70% number is after pro and con arguments, which are not provided.

The title used for the hypothetical ballot measure is “Tax on Personal Incomes Over $1 Million. Legislative Statute,” and the measure as described as increasing the marginal rate on income over $1 million by 2% from 13% to 15%, with fiscal estimates of $6 billion in yearly state revenues beginning in 2021-22 and increasing thereafter.

It’s an interesting play. If the Legislature puts this on the ballot, it could make the already difficult split roll property tax measure in even more jeopardy and could doom them both.

About Stephen Frank

Stephen Frank is the publisher and editor of California Political News and Views. He speaks all over California and appears as a guest on several radio shows each week. He has also served as a guest host on radio talk shows. He is a fulltime political consultant.

Comments

  1. Really??? says

    The bottom line is the Communist/Socialist economic view is spend without a nod to rational budgeting, and depending on the theft of wealth of from business and individuals from the Feds.

    They cannot get it. Wealth is created by individuals and businesses not to feed a growing government and government employees who use wealth taken from the workers.

    This is called Fott In Mouth Disease………..”the outrageous level of inequality —- to rebuild the disappearing middle class…….” Lorena Gonzalez (D-San Diego) either is so brain washed or too stupid to understand this Communist Failure. You steal from businesses and make too difficult to succeed then there is not enough money to give raises. You run out of the State the producers with this attitude.

    Use this idiot as the classic example of room temperature IQ.

  2. NOT ONE PENNY TO CALIFORNIA AND I LIVE THERE. Right now in Sacramento received 8 billion in federal aid and just about ALL OF THAT WENT TO PENSIONS, NOT SMALL BUSINESS BUT TO PENSIONS. If you don’t believe that then look it up. Now they want more PENSION MONEY FOR THEIR UNION OVER LORDS…if they being the DEMWITS dont produce this BAIL OUT OF PENSIONS THEY know they will pay in November with their UNION THUGS…Us who live here just want the DUMB ASS DEMWITS TO LEAVE FOR SOCIALIST COUNTRIES LIKE CHINA AND RUSSIA…ONE WAY TICKETS ONLY

  3. William Hicks says

    All this will do is chase out those creators of income for themselves and those they employ. This State needs more millionaires to build a sustainable economy.

  4. John Steele says

    HAHAHA.. all those very liberal millionaires are now the target of a new tax .. Just for them. Lets see how many suddenly find new Digs, in say… Florida Wyoming etc. No state OR Nation has EVER taxed its way to prosperity. 70% is impressive if true.

  5. Andrew Wilkow, “Socialism is the intersection between the incompetent and the incapable.” The fantasy that is functioning Socialism is enticing to both the poor who demand “free stuff,” and the privileged who need a purpose in life. He also said now that we’ve “enjoyed” our three month trial subscription to socialism, it’s time to renew or cancel our subscription.

  6. A favorite tool of the communist democrats is class division. They now have people (sheep) fighting to be slaughtered first believing a lie.

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