http://www.huffingtonpost.com/huff-wires/20120822/us-jerry-brown-s-tough-sell/
“Spending missteps make Brown tax plan a hard sell”
Governor Jerry Brown has run a very austere administration, reducing State expenditures by billions of dollars and is using this fact to promote an initiative that will be on the November ballot that will increase State sales tax by 1/4 % for four years and increase the income tax on incomes greater than $250,000 for seven years. This initiative is known as Proposition 30. These tax increases are designed to close a 15.7 billion shortfall in the budget.
There have been a number of incidents during the summer that have revealed mismanagement of taxpayer money. There are also some very expensive infrastructure projects being prioritized by the Governor that cast further doubt on the fact that tax payer money will be used responsibly. In addition, there are competing tax increase proposals for education that will also be on the November ballot. A main selling point that Governor Brown is using is that most of the tax will be raised from the wealthiest Californians, those earning more than $250,000 a year. However, this selling point is being diluted by the fact that the quarter percent State wide sales tax increase will have to be borne by everyone.
Brown is using the real threat of cuts to education as an incentive to the voters to pass Proposition 30. The budget passed by the Governor in the summer has $6 billion in automatic cuts to schools and higher education if Proposition 30 does not pass. This provision in the budget is designed to help pass the tax increases because Californian’s seem to be more open to consider tax increases directed specifically at education. There are a number of things that are working against Proposition 30, that the opponents really want us to know about. A few months ago, it came to light that a number of State Departments had awarded large salary increases to its employees. There was also a clandestine scheme to buy back vacation time from senior employees costing the State thousands of dollars per employee, and another case where State Park officials had lied about the state of their departmental finances to the tune of $54 million, all the while asking the public to help keep State Parks open with additional contributions. This evidence is being cited by opponents as reasons why that State cannot be trusted with additional tax revenue and that there is uncertainty whether the tax revenue will actually go to its intended purpose. Another potential strike against Prop 30 is that traditionally California voters do not support tax increases and have rejected the last eight State wide tax proposals.
However, there is one thing working in Proposition 30’s favor and that is funding, there is significant financial backing from supporters of the tax increase while opponents are struggling to raise money to oppose the Proposition. The opposition mainly draws funds from business groups whereas the supporters seem to be public employee unions who would benefit from this tax increase. Governor Brown is making it perfectly clear that as Californians we have a choice to either pay the increased taxes or significantly cut the education budget.
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