By Jack D. Forbes –
But the truth is easy to discover, it seems to me, requiring only a moments analysis: “no new taxes” translates as no increased or new taxes on internet sales, no new taxes on alcohol, no new taxes on legal marijuana sales, no new taxes on “sales” of services by lobbyists and lawyers (or massage parlors), no new taxes on the oil industry, et cetera.
So when Schwarzenegger says that he will veto any new taxes he means that he will protect the income of corporations, large businesses, corporate executives like Carly Fiona and Meg Whitman (who have millions to spend on their own political campaigns by the way), and other rich people who buy airplanes, yachts, and expensive legal and lobbying services.
The governor does not mean that he intends to protect the assets and income of working class people. Instead, he intends to take money from them! Cal State University students are being asked to cough up thousands of dollars to continue their education with increased fees. These fees are indeed an “educational tax.” They constitute a “voluntary tax” (like the sales tax) in the sense that no law requires one to go to college (or buy a new car), but if a college education is a prerequisite for future employment, then they constitute a tax on learning, a tax on training. Ironically, of course, trained persons will pay a lot more taxes into the state’s coffers than will uneducated persons.
Let us end the hypocrisy of the Republicans. They are protecting the incomes of corporations and big business executives as well as their lobbyist and lawyer friends by making workers bear the brunt of the current recession. When state action takes away 5% or 10% of a worker’s income, or virtually doubles the “taxes” charged by the University of California and the State University for an education, or puts some workers completely out of work by eliminating programs which funded their employment, then we have a class war against ordinary Californians. A class war designed to preserve the millions possessed by the richest Californians that, in turn, they can use to pay for their personal campaigns to obtain public office.
The campaigns of people like Arnold Schwarzenegger as well as many other wealthy candidates who are thinking about 2010 tell us that the rich in our state are doing quite well, thank you! Haven’t we had the example of numerous candidates seeking higher office in the last decade who poured millions into their own campaigns? And don’t we read frequently of the massive wealth of some of our Silicon Valley executives, or of wealthy art
collectors with enough money to build their own art museums?
Frankly, I think that a society is tilted the wrong way when services for our children and our neediest citizens can be cut severely just to prevent the adoption of some new taxes that we really will need anyway to protect our local merchants and to spread the sales tax to all kinds of transactions. Let us not tax the workers, the students, and the poor.
Jack D. Forbes, Ph.D., is a former Guggenheim Fellow, a Tinbergen Chair, and a holder of a Lifetime Achievement Award from the Before Columbus Foundation. He is a member of the National Writer’s Union, UAW, and a former member of the Teamster’s Union
I agree with your assessment that furlough’s are essentially a “employment tax”, or student fee increases are essentially an “education tax”. For the Governor to say “no new taxes” is hypocritical in light of the furloughing and increase in student fees that is going on. However, to solely lay the blame at the feet of the Republicans, corporations, or the wealthy is unfair and disingenuous. There is plenty of blame to go around.
As I noted in an earlier post, the Yolo County prison system has managed to save $150,000 a year just doing simple things, like having competitive bidding on food and clothing. Why in heaven’s name was this not done from the get go? That it wasn’t is a disgrace. There is huge waste in every part of governance, that needs to be addressed. Cost cutting measures that would not result in laying off workers has got to be instituted.
Democrats are in charge of the legislature. What solutions are they coming up with? Tax the wealthy, tax the corporations? Oh right, that is a great idea – let’s drive the wealthy and business out of the state, and lose even more tax revenue. This state has overspent for years, and it needs to stop, right here and right now. The kind of salaries we have been paying state workers is unsustainable.
The fact of the matter is the Democrats are in charge of both houses of Congress and the White House at the national level. The deficit will reach nearly 2 trillion dollars, bc Obama like typical Democrats, doesn’t know how to solve a problem other than to throw money at it and hope it goes away. Republicans are just as bad – their policy is to sit back and let the Democrats self-destruct, while the country goes down the tubes.
This state has been throwing good money after bad at the public school system, yet what are we getting for it? Our state’s test scores are second to the worst in the nation. Throwing more money at education is not the answer. I am more for what Lois Wolk is advocatiing – performance based governance. Show that your program is worthwhile, is making a difference, and only then will you continue to get funding.
My View,
I’m glad you mention prison waste. But it is orders of magnitude beyond what you’re talking about.
If you accept these numbers for state prison expenditures:
[url]http://www.pbs.org/now/shows/419/states-prisons.html[/url]
California and Texas had roughly the same number of prisoners in the state system — 171,000 — in 2007.
California spent $8.8 billion, Texas $3.3 billion. Somehow Texas underspends California by $5.5 billion.
Put another way, California spends $51,000 per prisoner per year; Texas $19,000 per prisoner per year.
To wdf: And if this kind of waste is going on in the prison system in CA, it most likely is going on everywhere else in state gov’t, including education!
As I see it, there are four primary culprits for CA government over spending compared to other states:
1. Higher ratio of tax revenue consumers to tax revenue contributors.
2. Higher ratio of bleeding hearts and special interest advocates for higher tax and spend policies.
3. Out of control public employee unions and lack of state worker labor efficiency (do not leverage economies of scale very well).
4. Lack of political will and leadership to do the right things with respect to our spending.
HIGHER NUMBERS OF TAX CONSUMERS: At about 14%, California ranks 23rd in the percentage of residents below the poverty level. However, as the most populous state (almost 37 million), the number of financially needy as defined by the federal poverty level is higher than any other state at about 5 million. The high cost of living in CA increases the ranks of financially needy beyond the Federal measure. California has more immigrants and more non-English-speaking residents that require more help than they pay for.
MORE BLEEDING HEARTS & SPECIAL INTEREST: California spent 70 percent more per capita than the rest of the country on social services in 2002, the last year such figures were available from the U.S. Census Bureau. Current estimates are that CA spends more than twice as much as the national average. Similarly, powerful special interest groups (like environmentalists and YOU NAME IT) demand more services from CA government than any other state.
PUBLIC EMPLOYEES: The labor unions benefit from more warm bodies on their roster; consequently there is little incentive toward higher per-worker productivity. Union marketing campaigns use simple comparisons like the number of teachers per student, or the number of case workers per case. However, with our larger numbers of students, clients and cases, we should be able to realize the benefits of economies of scale implementing technology and process improvement. California government has grown too expensive at least partially because the incentives to do more with less are non-existent. Add to this the fact that we have the most highly-compensated public employees in the nation (yes, even our teachers).
LEADERSHIP AND WILL: Somebody please remind me what this looks like because I haven’t seen it for a long while in California. As constituents, we lack will to accept reality and expect bailouts for all our excesses. As politicians, we seem to fear being disliked more than we are motivated to do what is truthful and correct. Some suggest CA has grown too big to govern… maybe so. However, I think we (constituents and politicians) have lost our sense of community to be replaced by a level of selfish pursuit of constant validation and adoration. Neither Gandhi nor General Patton seemed to care too much what others thought of them personally, they just practiced doing what was right. We need much more of that type of leadership, and the will to recognize and value it even when it causes us some short-term pain.
http://www.latimes.com/news/opinion/la-oe-meyerson23-2009jul23,0,5375202.story
Check out the link its the column I wanted to write myself if only I knew how.
Re: LA opinion piece above
I enjoyed the line:
“They [the California legislative Republicans] are concerned about California like the Visigoths were concerned about Rome.”
“Union marketing campaigns use simple comparisons like the number of teachers per student, or the number of case workers per case. However, with our larger numbers of students, clients and cases, we should be able to realize the benefits of economies of scale implementing technology and process improvement.”
In the case of California K-12 education, the state has already been doing with less for years. Per capita expenditures on K-12 education are not significantly different from other state, but California has a larger percentage of K-12 students than other states on average.
“http://www.latimes.com/news/op…5202.story
Check out the link its the column I wanted to write myself if only I knew how.”
It never ceases to amaze me how Dems consistently blame Republicans for the mess Dems made. I almost would like to give Dems majority rule to pass the budget just to prove my point. Except I swear when the mess we are in gets even worse under Dems with a simple majority rule, the Dems will still blame Repubs just on principle! How about stopping the blame game, and fixing the problems? Oil severance tax? Will someone explain to me how an oil severance tax is not going to somehow come back and be tacked onto the price of a gallon of gasoline for all income levels of citizens, including the poor? Do you really think the oil companies are going to “pay” for such a tax in reality? If you really want to stick it to the oil companies, encourage the development of alternative fuels like mad – and put a decent energy policy in place nationally, that encourages all national energy industries like nuclear, solar, wind, hydro-electric, public transit, etc.
“Except I swear when the mess we are in gets even worse under Dems with a simple majority rule, the Dems will still blame Repubs just on principle!”
Dems would probably do that, but without the gridlock, then the majority party would solidly take the blame for the mess (or credit if it runs smoothly). Right now, paralysis substitutes for checks and balances, and I don’t see much of any overall benefit in that. Republicans would probably gain the majority more quickly at the next election if the Dems screwed up and couldn’t blame the opposition for anything.
my view said it. I agree that students are being taxed, but like my view said, it is not fair to lay it all at the Republicans doorstep. The dems aren’t stepping up to the plate with ideas that will save our economy and save student fees.
second, as we see with people like ketahi, somehow while students are paying higher fees, fat cat ceo-type administrators at universities are upping their own salaries or are getting perks. Seems to me their concern for the student’s well-being is lacking, and I don’t see how that is all Arnold’s fault.
Also, the Dems have much more power to affect change than the republicans. I don’t see Mr. forbes holding the democrats feet to the fire.
“Dems would probably do that, but without the gridlock, then the majority party would solidly take the blame for the mess (or credit if it runs smoothly). Right now, paralysis substitutes for checks and balances, and I don’t see much of any overall benefit in that. Republicans would probably gain the majority more quickly at the next election if the Dems screwed up and couldn’t blame the opposition for anything.”
But do you want to give unfettered control to one party to really mess things up? Democrats have shown no inclination but to complain about Republicans, but don’t have many ideas of their own. I think I could agree to say a 60% majority, but 51% scares me as having no real checks and balances.
“Also, the Dems have much more power to affect change than the Republicans. I don’t see Mr. Forbes holding the Democrats feet to the fire.”
Very good point.
“But do you want to give unfettered control to one party to really mess things up?”
That’s part of Democracy. It is in the best interest of the party in power not to mess things up. But what happened at the national level is that the Republicans had unfettered control and messed things up, now the Democrats get their chance. If they fail, the Republicans will get a chance to redeem themselves. That’s the way the market works.
the problem in California is that both parties have really messed things up and neither party has been held accountable. Is that really a preferrable situation? Do you really believe that one party on their own will make things worse than they already are in California?
Oil companies can’t pass through a severance tax on California production because the price of oil is set by the international market and California doesn’t have enough oil production to effect the price of oil.
“the problem in California is that both parties have really messed things up and neither party has been held accountable. Is that really a preferrable situation? Do you really believe that one party on their own will make things worse than they already are in California?”
Even if the Dems were given 51% majority rule, they would still blame Repubs for any problems. Dems are all about the blame game. Repubs are all about sitting back and allowing the Dems to self-destruct. Both parties are disgusting.
The Democrats would still blame the Republicans if they were given a majority rule. Just as Republicans tried to blame Democrats nationally in 2006 and 2008. It just wasn’t credible.
It’s a lot easier to point fingers than come up with solutions. What we really need are better leaders. But who in their right minds would run for political office, knowing they are going to be vilified for just about anything they do. What a mess!
there have been so many draconion cuts to the poor. They are the equivalent of new taxes. Arnold raised the sales tax, he raised dmv fees, court fees, etc etc etc. These have all hit the poor. now there are new cuts to section 8 housing. hey… the rich got off easy. everyone else is paying. the unions still make the same amount of money as before. welfare, social security, food stamps and medi-cal has been cut..but the rich unions (fire fighters, cops, prison guards, and teachers) have gotten by with no cuts. Rich peoople like Arnold have gotten by with murder. what’s going on in this god awful state is criminal because of the republicans. it’s time we rise up and take back our legislature. raise taxes for the rich just like they’ve raised taxes for the poor.
cut entitlements to illegal immigrants, who come here, have 4 kids or more who get welfare etc etc. in the mean time, while we’re throwing money at illegal immigrants, we’re cutting services to American citizens. it aint right!!!!
“but the rich unions (fire fighters, cops, prison guards, and teachers) have gotten by with no cuts”
That was their decision. If they stand by it, then they will have to take the layoffs that come w it. I suspect in the next round of local budgeting, this is what is going to have to happen.
“what’s going on in this god awful state is criminal because of the republicans”
The Democrats control both legislative houses, at the federal level and at the state level. At what point do you ever hold the Democrats responsible?