His Voice: Republicans show courage opposing California tax increases
by George Runner / For the Tracy Press
Jun 10, 2011 | 2285 views | 14 14 comments | 10 10 recommendations | email to a friend | print
Conventional wisdom in California’s perennial budget crisis is that lawmakers who support tax increases are courageous, while those who refuse to go along are, well, cowards.

The John F. Kennedy Library Foundation reinforced this misguided notion last year by handing out “Profiles in Courage” awards to four legislative leaders who inflicted billions in higher taxes on average Californians struggling to survive a steep economic downturn.

Courage, it seems to some, is the willingness to pick another’s pocket when one’s own bank account balance is running low.

Despite his public persona of frugality, Gov. Jerry Brown shares this view.

In his State of the State address earlier this year, Gov. Brown argued that California would once again be a leader in “job creation, renewable energy … and education” if lawmakers could find “courage … to tackle our budget deficit head-on.”

For the political layman, tackling our budget deficit “head-on” is the governor’s code phrase for billions in more taxes, which Gov. Brown fervently supports.

Case in point, earlier this year the governor used a crime victims rally to send an even more pointed message. He told the victims: “I’m hoping that your courage will become contagious and inspire the reluctant few Republicans who we need to join up and get our budget done.”

Thanks to an initiative approved by voters last fall, the governor and a simple majority of his legislative allies are free to pass a budget based on anticipated revenues — about $85 billion — with no Republican votes at all. The only reason the governor wants Republican votes is because he still needs a two-thirds vote to raise taxes.

By way of perspective, the State of California’s budget was less than $85 billion as recently as 2004. If the state bureaucracy survived on that amount before, it can do it again.

According to Merriam-Webster, “courage” is “the mental or moral strength to venture, persevere, and withstand danger, fear or difficulty.” Cowardice is the opposite.

It may be the governor himself who lacks courage to close a budget deal.

In March, five Republican senators reported that they had “reached an impasse” in negotiations with the governor because their “substantive reform proposals to create jobs, require responsible state spending, eliminate abusive pension practices, and implement meaningful governmental reforms” had been “either rejected or so watered down as to have no real effect.”

The senators concluded that the governor was “unable to compel other stakeholders to accept real reform.”

Later that same month, it was the governor, not the Republicans, who pulled the plug on budget negotiations. Rather unconvincingly, the governor claimed a deal was impossible because Republicans were asking for too many reforms.

New California Republican Party chairman Tom Del Beccaro recently took Gov. Brown to task in an op-ed titled, “If only Jerry Brown had Andrew Cuomo’s courage.” Del Beccaro argues that true courage is being shown by New York’s governor, a Democrat, who rather than raise taxes is trimming government bureaucracy and waste to close his state’s budget deficit.

When asked why he won’t support increasing taxes, Gov. Cuomo explains: “I believe it’s counterproductive for the state. I believe more people will leave the state, and you’ll have less revenue.”

According to the Tax Foundation, New Yorkers have an even higher tax burden than Californians — but both states have the dismal distinction of making the top 10 list of states with high taxes.

Does Gov. Brown really believe he will lower California’s unemployment rate — which remains among the worst in the nation — by raising taxes to New York levels or higher? Does he really think job creators want to come to a state with high taxes, high costs and regulatory uncertainty?

True courage is exhibited by men and women who are willing to stand for their convictions against incredible opposition.

But having courage means little if you’re wrong.

I recently heard an elected official from the Bay Area proclaim that she believes taxes should be higher. She certainly displays courage by honestly communicating her belief.

But she’s wrong. And anyone else who thinks higher taxes will help California’s private-sector economy create jobs and be more competitive is also wrong.

The true unsung heroes in California’s budget crisis are those lawmakers who have the courage to oppose higher taxes despite tremendous pressure to compromise.

Though the John F. Kennedy Library Foundation may refuse to acknowledge them, overtaxed Californians are grateful for their courage.

• Elected in November 2010, Sen. George Runner represents more than 9 million Californians as a member of the Board of Equalization. For more information, visit www.boe.ca.gov/Runner.
Comments
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FRETLESS
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June 27, 2011
Republicans and Democrats are two sides of the same coin. All politicians care about is themselves and how much money they can make. The easiest way to make money is to convince the masses that the tax money will do some good. Dems say they will help the poor and Repubs say they will help the working man. Both roads will require tax money to fund it so taxes aren't going away. As far as people living off the government teet, I agree with the consertive crowd that lifelong handouts should not be an option. But I challenge you to find a politician that will put their smiling face on a poster of a starving former welfare baby. So as long as "carrer politicians" are in charge of government, we will just swing helplessly in the breeze from one bad idea to another. I know it's a pessimistic view but I have worked for the state and it is more messed up than you can imagine. The only way to make it better would be to shut it down and start from scratch. Good luck!
ILovePeppermint
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June 26, 2011
I believe the author is right to say that raising taxes will not get California out of a pickle.

The problem is the cost of business in California. Delays getting anything done and tons of lawsuits. Regulations red tape chase business to Texas and other countries.

Further taxation will not help until we look at the real reason why businesses are leaving. California has enjoyed prosperity and the blue state mentality for far too long.

The party is over.
catinthehat
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June 17, 2011
It is stunning that the support for the democrats continues in this state, despite all of the fiscal insanity they have delivered.

Yesterday the state passes a budget on time ... wow! That's new ... oh, but why? ... oh, their pay was going to be whacked if they didn't get it in! ... do you think they kinda knew that Brown would veto? Ya think???

What a bunch of slime balls!

When it comes to looking out for their own skins, all of a sudden it's important to get the budget out on time!

And guess what ... the actual spending in the budget INCREASED!!!! Oh ... they're taking big cuts ... historic ... but increasing "fees" (I mean taxes, right, oh no, that needs a 2/3 super majority still, right?) ... so while all revenues are down, businesses closing, people unemployeed, leaving the state ... our wonderful legislature (who is looking out for us), passes a sham budget only to keep their pay while the rest of us "little folks" (otherwise known as the tax payers) get to eat cake.

It makes them no better than Anthony Wiener .... really!
ILovePeppermint
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June 16, 2011
rcharperatlaw@aol.com

Factor out Prop 13 it starts to become clear why jobs are going to places like Texas. Don't forget, there aren't nearly as many regulations in TX (as there are in CA).

Here's more:

http://jan.ocregister.com/2010/10/12/calif-vs-texas-no-contest/46980/

Sally C. Pipes, president and CEO of San Francisco-based Pacific Research Institute, said, “If Californians still have trouble understanding why so many of our former neighbors have gone to Texas, this scorecard spells it out in painful detail.”

California does outperform Texas on a few measures:

State and local property tax burden per capita: California $32.89, Texas $36.50

Sales tax per $1,000 of personal income: California $25.62, Texas $29.47

But on most measures that the study uses, Texas comes out ahead:

State sales tax rate: Texas 6.25%, California 8.25%

Marginal corporate income tax rate: Texas 1% GRT, California 8.84%

Total state and local government expenditures per capita: Texas $7,763.49, California $11,256.83

Average annual growth in government spending: Texas 7.02%, California 7.29%

Recession-related job loss from peak employment to July 2010: Texas, -2.3%, California, -8.7%
catinthehat
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June 15, 2011
rcharperatlaw .... your attitude toward the taxpayers and the private sector is cavalier at best. Dcose put it very well; tax payer funds are not an ulimited source...there are only so many "rich" or "evil corporations".

The people we elect to office are the stewards of our money. Unfortunately this is not the case with the current ruling political elite.

Not sure if you live under a rock or are simply not able to read but there are many examples of the difficulties of businesses operating in California.

California ranks as the LOWEST state in which to operate. Go ahead ... look it up!

Its not just a national issue ... WSJ Friday 6-10 ... 37% of all net new American jobs ... were created in Texas; California, in the same time is down 11,400 jobs! The State of Illinois, after raising its corporate taxes by 60% (!) now risks loosing CAT, Sears, and, most recently, the CME in Chicago. THIS IS ALREADY HAPPENING IN CALIFORNIA!!! WAKE UP!!!

We have pleanty of models of failed states and countries and many models of success ... i suggest we look to the successful models; don't you?
dcose
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June 14, 2011
rcharperatlaw@aol.com wrote »

"The writer suffers from the illusion that schools and roads build themselves... and government employees can subist on light and air."

The poster suffers from the illusion that taxpayer funds are not limited. Private sector businesses and citizens continue to cut while the employment bright spot, enabled by taxpayers... government hiring... along with junkets, government spending for toys (x-boxes etc.), Obmacare waivers issued to unions and companies friendly to the administration, along with the tax burdens of: state income, sales, real estate, various fees on so on, continues to rise.

"There is no support for his assertion that businesses are "fleeing" California because of taxes."

The following are the tip of the iceberg the S.S. California Titanic sails towards:

http://jan.ocregister.com/2011/01/28/2010-total-204-firms-tell-calif-good-bye/53594/

http://californiabusiness.wordpress.com/2010/10/28/business-leaving-california-in-record-numbers-a-message-to-carb-and-ab-32-implementation-from-sclc/

"...paying taxes is something we must do though we will never like doing."

The ever increasing taxation for services rendered is problematic.
rcharperatlaw@aol.com
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June 14, 2011
The writer suffers from the illusion that schools and roads build themselves, laws are self enforcing, fires put themselves out, and government employees can subist on light and air. There is no support for his assertion that businesses are "fleeing" California because of taxes. I should think that businesses here and those considering coming here would be more concerned about the crumbling infrastructure, declining public education, and bankruptcy filings of local governments. Like having teeth filled or filling gas tanks, paying taxes is something we must do though we will never like doing.
catinthehat
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June 13, 2011
Sneaky ... you are misinformed ... the republicans presented several budgets that did not raise taxes but instead cut the spending. Brown hasn't brought them to the table.

I agree with ILovePeppermint ... if the Gov wants to put forward a budget for the voters to approve then give them a choice ... present two budgets ... one that raises taxes and one that cuts taxes and lets see who prevails. Unfortunately this is a false choice.

The real reason that Brown has used this tactic is because he believes that the public employee unions will mobilize to pass the increase as they have the most to gain.

There are more "takers" than "givers" in California today.
ILovePeppermint
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June 12, 2011
Sneaky,

I have a question.

Do we really want the voters to vote on the governor's budget? Didn't we elect him to do the job he said he could do? If the budget is flawed then why not go back to the drawing board and invite both parties. I really don't see that happening. And for starters, why should the voters waste their time on a flawed budget?
Sneaky
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June 12, 2011
While I think government needs to spend tax money wisely I cant say I agree with all the bashing of Browns budget plan. What have the republicans offered in the way of a budget plan? Nothing. They are all for standing in the way of getting things done and all for denying the voters a chance to vote on the issue but when it comes to offering up competing ideas they fail miserably.

catinthehat
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June 11, 2011
Excellent piece ... well put.

My question is ..."Do we want to be like Greece?"

What is the difference, really, between the situation in Greece and California? ... Only a matter of degrees.

It is simply money in and money out and money promised.

If you don't have the revenues to sustain the programs you just can't raise the taxes to increase the revenue ... where do you think the money comes from?... a big black pipe in the sky that stretches back to the Treasury???

Why do you think (and I am directing this at Dems) that businesses are FLEEING California? Retirees leaving in record numbers?

The burdens of government ... taxes, regulations, entrenched unions. They are drowning our once great state.

People are FOOLS to believe that just a few more taxes will solve the problem ... are you really that short sighted or were you just born yesterday?

I am thankful that we have at least 5 Republicans that have stood up and said no ... keep it up. Hopefully we can get more in there.
ertion
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June 10, 2011
markj, what do you mean by reform? Could you live with SS and Medicare going to zero? those entitlements cannot be paid for. even with a means test with reasonably well off folks ineligible for them, they cannot and will not be paid for as the baby boomers retire en masse. maybe for the absolutely destitute.

republicans talk to their constituents, democrats talk to theirs. nothing courageous about any of it.


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