Gavin Newsom and Impending Tax Increases

Gavin newsomIn his successful campaign for governor Gavin Newsom promised to advance a number of programs like universal pre-school, health care for all and education that will be costly. Where does he get the money while also considering how to reform the state’s tax system?

Shortly after the election, fellow Democrats, including Assembly Speaker Anthony Rendon are also talking tax increases.

If the Democrats secure the two-thirds supermajority in the legislature required to raise taxes—which appears likely at this time—the foundation will be in place for tax increases.

In a state notable for decades as the home of tax resisters, there are signs that voters may not object. In the last few statewide elections voters have raised income and sales taxes and rejected repeal of gas taxes and extending property tax breaks.

On the local level, voters continually vote to raise numerous taxes.

How many more tax increases are in the future and where will Newsom draw the line?

Is Newsom planning on confronting Proposition 13 when the split roll appears on the 2020 ballot—a position his predecessor, Jerry Brown, avoided?

Newsom is already listening to Senator Bob Hertzberg, re-elected Tuesday, to consider an overhaul of the entire tax system that would include some form of service taxes. If Newsom wants to spend political capital on such an ambitious effort it would likely come soon.

However, Newsom has said such an effort would take time. Look for another tax reform committee to be formed—which would be the fourth such committee over the last 20 years.

Or the incoming governor could rely on Hertzberg’s connection with Nicolas Berggreun’s Think Long Committee to do the heavy lifting on formulating a tax reform plan….or cut an overall tax package deal in the legislature that could include a move on commercial property taxes.

Another question: Will tax reform venture into the difficult area of spending issues, particularly the cost of pensions?

And what happens if the economy turns sour? Are all bets off on reform…or is that the time to go for it considering California’s current tax structure was birthed in the gloom of the Great Depression.

Look for early signs on tax questions in the budget and official announcements from the governor’s office.

This article was originally published by Fox and Hounds Daily

Comments

  1. Thanks for the grim reminder of last Tuesday’s election results, AND their real life implications…
    I can honestly tell you that last week was the worst of my life that I can remember, with the hope of Sunday and Monday replaced with the election results Tuesday, the Borderline shootings Wednesday night, and the fires Thursday onwards..
    Bleak…

  2. The Captive says

    Living in CA consistantly gets worse and worse. If you are low income you have to watch your spending very carefully and spend only for what you need and then what you can afford first and see if you can afford more if necessary. This is a GRIM REMINDER and of course the damn Dems. just love to SPEND OTHER PEOPLE’S MONEY!

    • Harry Tawkko says

      “If you are low income you have to watch your spending very carefully and spend only for what you need…” What’s new?

  3. DENNIS WOLLEN says

    the reason prop 6. the gas tax repeal, did not win is because of the devious wording……

    if you ‘didn’t want’ the tax, you had to vote ‘YES’…….

    if you ‘wanted’ the tax, you had to vote ‘NO’……..

    AS ALWAYS…people do not read the descriptions of and in the bills……
    they’re stuck on ‘YES’ and ‘NO’……….and voted against themselves……

    they were (thinking?)……’NO’ I don’t want it…or ‘YES’ I want it…..

    hence, the ‘NO’ vote ‘to save the tax’ won out when people voting ‘NO’ thought they were voting against the tax….

    THE OLD ‘BAIT & SWITCH’…….

  4. Gavin Newsom is from the Ocasio-Cortez School of Economics where you “…make up money,” i.e. “print it.” It’s only paper! That philosophy, initiated by President Woodrow Wilson, has taken the Dollar value down 99.7% with Barack Hussein Obama ripping the last 2.3% off by doubling our national debt from that all all the President’s that preceded him! Our people are now too poorly educated to understand it and talking to one is like discussing anything with a German Shephard. All they can say is “Arf!”

    Google “Two Minute Conservative” for more.

  5. California has cancer.

  6. I had to have election day as my yearly checkup. My doctor wondered why my blood pressure was so high. Well, I knew Newsome would get elected and the idiot voters here would vote for everything that would make our taxes go up. I can’t believe there are so many idiots in one state!

  7. Ralph G Mongelli says

    Azz hole

  8. I may be wrong, but I think the majority of the people that won’t be objecting to the increases will be the recipients of the increases.

    • showandtell says

      You’re probably right, but it’s high time for those people to become more public-minded and tuned-in and less oblivious about the health of the ENTIRE STATE. And that’s because the sickness and downfall will eventually affect the selfish, self-centered, and everything’s-fine folks, too. This applies to the whole country, by the way, because a very significant number of the zombies will need or want to escape half-dead California and fan out to the rest of the U.S. to feed on healthy states. They can’t help themselves.

  9. TheRandyGuy says

    Newsom will seek, and the legislature will impose, taxes on services. In addition to the current taxes in place, CA will have succeeded in taxing every form of business structure that exists. Yet it will not be enough.

  10. I work at the DMV and there was VOTER FRAUD..3.5 MILLION illegal mexicans voted and were encouraged to do so….California is CORRUPT..

  11. George Borowski says

    Everyone should be scared. Voters blew it again.

  12. Tax increases that “soak the rich” will still be popular with the majority, but one has to wonder — With the recent loss of state tax deductibility on the federal returns of the well-to-do, what will be the effect on CA the next few years? The loss of that deductibility is essentially a SIXTY+ PERCENT INCREASE in the after tax cost of the CA state income tax. Will the truly rich establish tax residences outside California (a problem staff can handle)? Many Hollywood stars and moguls have quietly done so already.

  13. REVIEW: Prior to Prop 30 passing in Nov. 2012, CA already had the 3rd worst state income tax rate in the nation. Our 9.3% tax bracket started at under $50,000 for people filing as individuals. 10.3% started at $1 million. Now our “millionaires’ tax” rate is 13.3% – including capital gains (CA total CG rate now the 2nd highest in the world!). 10+% taxes now start at $250K. CA now has by far the nation’s highest state income tax rate.

    We are 34% higher than 2nd place Oregon, and a heck of a lot higher than all the rest – including 7 states with zero state income tax – and two states (NH and TN) that tax only dividends and interest income (not capital gains). NOTE: TN tax totally phases out by 2022.

    CA is so bad, we also have the nation’s 2nd highest state income tax bracket. AND the 3rd. AND the 5th!   
    http://taxfoundation.org/sites/taxfoundation.org/files/docs/ff2013.pdf Table #12
    and
    http://www.TinyURL.com/CA-vs-other-states
    and
    http://tinyurl.com/CA-2nd-CG

  14. By moving our business out of Taxafornia , sell a couple of rental properties My taxes would drop by $ 734000 per year. Guess who is in the process along with other companies of packing up and raising a index finger to a once great place to live

  15. Let’s examine the lack of election integrity FIRST before we talk about what voters want, ok? What a mess. With no consequences and no monitoring by people whose job it is to monitor (Hint: OS Alex Padilla) it seems to have become a Dem INDUSTRY in California:
    Susan Shelley – “Some questions and concerns about election integrity”
    https://www.dailynews.com/2018/11/06/some-questions-and-concerns-about-election-integrity/
    Also check out — on the videos on his Facebook and Twitter page — what S.O.S candidate Mark Meuser learned as he campaigned. It’s outrageous and unacceptable what’s going on here.

  16. Freebies lovers voted for this despicable piece of s***!

    • Leaving CA too says

      They’re too stupid to know nothing is free! We pay for it one way or another. So many people who vote don’t do their homework to know what they’re voting for. Whatever sounds good. Then we pay. Too many stupid people. I say they have no right to complain.

  17. Ex California girl says

    California is like an old boyfriend. You want him to do well and sometimes even miss him. But you spend some time with him and see the crap he does and you remember why you broke up ?

    • showandtell says

      This is a keeper. I’ll be putting it in my ‘favorite quotes’ folder. To bring out again if we end up moving. Thank you.

  18. Increase the taxes and more companies will move their offices and major parts of their organizations to other states. People will leave and their locations/houses will fill up with illegals. The increased taxes will provide for them and more companies/people will leave. Pretty soon we’ll be known as Valenzuornia. We’re in serious trouble.

  19. Go ahead raise taxes. People just buy less, work less and more people move a way and more businesses move away and then CA doesnt get squat. Then say hello to more illegals and sht on the streets.

  20. C. J. Fillipucci says

    Talk about throwing grandma over the clif control the money control the people this is why people are leaving the state

  21. Lie him or not – he is going to bone all of us

  22. Gotta Gedada Displace says

    Were YOU as shocked as I was to see NOCANDIDATE STATEMENT or even PHOTOGRAPH in the Voters Guide for Gabby Tiresome? (I just checked it again to confirm it wasn’t my eyes !) It’s either incredible ARROGANCE, incredible CORRUPTION, or incredible knowledge that our soon-to-be Peoples Republic has replaced “Low Information ” voting majority with “NO INFORMATION” Voting majority (or perhaps with instant “Motor Voter” they have not had time to acquire English (or any) literacy ! ) I am redoubling my efforts to escape this asylum, I don’t see a way to save things now !

  23. Gotta Gedada Displace says

    Or perhaps the picture would remind too many people of a cross between a low-rent game show host, and The Joker without makeup ! Well the joke is definitely ON US and NOT AT ALL FUNNY !

  24. The news gets “worser.”

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