Will Taxpayers Be Mugged by Sacramento?

TaxesGovernor Brown has just released his spending proposal for 2017-18 and taxpayers should not be blamed if they feel like they are walking down a dark alley in a high-crime neighborhood.

While the governor’s proposed budget has been described as austere, it still represents a spending boost of 5 percent, a rate of increase only slightly smaller than last year’s 6 percent. Because the state is in the process of rewarding its employees with generous pay increases and covering an expanding requirement to fund their pensions — pensions that are currently subsidized by six percent of the general fund budget — more spending does not represent an increase in the quantity or quality of services for average Californians.

The Brown budget contains no major program increases except for transportation. But the kicker is that this would be contingent on higher taxes on gasoline and car registration. So, while state workers will be kept snug and comfortable, if commuters want those pot holes repaired, they must pay extra.

However, the governor’s budget should not be regarded as anything more than a place holder, as the ability to fund it is threatened from all directions. The new administration in Washington, as well as a majority of both houses of Congress, have made it clear that Obamacare is on the verge of elimination. There can be little doubt that federal funding for California’s massive expansion of Medicaid is in jeopardy. Because, to paraphrase Ronald Reagan, a government program is the nearest thing to eternal life we’ll ever see on this earth, no one will be surprised when Sacramento looks to average taxpayers to make up the nearly $16 billion-dollar difference.

Then there is uncertain tax revenue. The extension of the nation’s highest income tax rates renders California highly vulnerable to economic fluctuations. Although growth had been tepid, we have experienced 90 months of economic expansion and financial experts warn us to be prepared for the next downturn.

As if these threats were not enough, Brown will have to contend with elements in his own party who believe in the axiom of former Senate leader, David Roberti, “When you’ve got it, spend it,” to which they would add the corollary, “If you don’t have it, spend it anyway.”

Chairman of the Assembly Budget Committee, Phil Ting, has already made it clear that he does not want to budget assuming the worst, that the Legislature must continue “investing in California,” a budgetary approach akin to Admiral David Farragut’s at the battle of Mobile Bay, “Damn the torpedoes, full speed ahead.” While Farragut was successful, is it appropriate to put California taxpayers at dire risk through imprudent spending?

In May, the governor will issue a revised budget, no doubt with major changes, in advance of the June 15 deadline for final passage. If revenue is down, taxpayers may be treated to the spectacle of a cage match between those committed to spending, backed by their special interest allies, and those who advocate a slightly more cautious approach.

In Sacramento, fiscal sanity is relative. Ironically, our eccentric governor who thinks nothing of lavishing nearly $100 billion on a bullet train, may be the dwindling middle class’s best hope to fend off major increases to their already staggering tax burden.

Jon Coupal is president of the Howard Jarvis Taxpayers Association — California’s largest grass-roots taxpayer organization dedicated to the protection of Proposition 13 and the advancement of taxpayers’ rights.

This article was originally published by HJTA.org

Comments

  1. Why should people be surprised this is the Democrat MO. If the people are stupid enough to vote for taxes to be raised you will get what you pay for. They passed it off on taxes on the wealthy but the wealthy have no problem selling and moving out of the state, which they have done. They talked about the fact that over $7 Billion of taxes left the state because of the high taxes. Open your eyes.

    • And now they’ve moved North and and making all the same mistakes over again in Oregon, aka Northern California.

  2. True Teacher says

    Will taxpayers be mugged by Sac’to?

    Well, Democrats think all money belongs to the government, as they are so wise as to know how to equalize people…except themselves, who are more equal than we are.

    First, they gotta make sure everybody is disarmed.

  3. California’s Government is run like a crime family. Only attack (TAX) those that cannot organize against You——–use the D.M.V. to attack the working poor whilst leaving the Billionaires that finance the election “cycle” untouched by the hurt little people feel. Gas Tax hurts the working and those on fixed incomes as does other taxes (fees) imposed without direct recourse. —a free shot gun with California fees cost $145.00/ 1/2 the price (nearly) of the gun itself. Tax-a-fornia and it’s Progressive Internationalists Agenda pays criminal aliens to stay in Sanctuary Cities. Sick,sick,sick.

  4. The Democrats with Jerry Brown leading are having fun, fun, fun with the taxpayer’s money. Is it possible to stop this Luddite dreamscape while the citizens of this state have any money left?

  5. Simple answer? YES!

  6. As liberal as CA is, one wonders what the average person would think if they knew our budget was considered “austere” at 6% growth.

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