Tag: Proposition 13

Categories
deficits and debt election law tax policy

Slasher Needs Slashing

California Assembly, tax, taxes

A perennial bill in the California Assembly, Constitutional Amendment 1, would make it harder for voters to block local tax increases in accordance with the provisions of Proposition 13, which voters passed in 1978.

ACA 1 would shrink the percentage of voters who must approve certain tax increases from two thirds to 55 percent in cases where the money would purportedly be used for infrastructure or public housing.

Passage would further erode the legacy of Prop 13, which in addition to cutting taxes, limiting tax increases, and requiring a two-​thirds legislative majority to increase state taxes, also imposed a two-​thirds threshold for voter approval for special local taxes.

In 2000, voters accepted a lower threshold for approval of school bonds — 55 percent instead of two thirds — enabling billions more in property taxes.

That’s bad enough, but things could easily get worse.

Jon Coupal of the Howard Jarvis Taxpayers Association observes that if enacted, ACA 1 would be used to raise taxes repeatedly in local elections by dint of dubbing all government spending “infrastructure.” 

The infrastructure exemption is an innovation of the 2023 version of the bill (the tricky tricksters never stop).

Moreover, if passed, the amendment would take effect immediately. “Billions of dollars in tax hikes will start that much faster.”

Coupal stresses that the new exactions would be added to property tax bills “above and beyond Prop 13’s one percent cap” on property taxes.

ACA 1 keeps getting reintroduced and, so far, keeps getting killed off, like the mad killer in a teen slasher movie. Only to be revived for the sequel.

Kill it again.

This is Common Sense. I’m Paul Jacob.

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Categories
initiative, referendum, and recall too much government

Swooning Over Citizen Control?

D. Dowd Muska attacks conservatives and libertarians for so strongly supporting voter initiative and referendum. From the august pages of the Hartford Business Journal, he writes that we’re “hopped up on the false notion that elected officials respond not to voters but the dictates of liberal elites.” It all started, he says, after passage of Proposition 13 in California, back in 1978: “America’s right swooned.”

Well, I plead guilty — for both swooning and then being “hopped up” on citizen access to a path to check their elected know-​it-​alls. Prop 13 not only saved Californians from losing their homes to exploding property taxes, it also touched off a nationwide revolt. Within two years, 43 states passed property tax relief and another 15 states (including California) enacted income tax cuts.

But Muska warns initiatives “have a mixed record.” He points to a number of measures, some initiatives and others placed on the ballot by legislators, which have expanded government spending or regulation.

Talk about astounding revelations! Of course voters aren’t going to always be right. They won’t agree with Muska 100 percent of the time. They won’t even acquiesce to my superior wisdom and vote my way every time.

Still, it seems to me that any decision legitimately the province of our government ought to be open to democratic oversight by citizens. 

Others, like Muska, prefer that voters choose between candidates Tweedledum and Tweedledee — and then to butt out.

Real options work better. For everyone but insiders.

This is Common Sense. I’m Paul Jacob.

Categories
initiative, referendum, and recall tax policy too much government

Prop 13 Declared Innocent

You hear it all the time: California’s in such a mess “because of Proposition 13.”

You probably wonder how that initiative, passed way back in the ‘70s, could be so key.

Well, it was the first of a long line of voter-​instigated tax limitation measures, and it made politicians ache with frustration. Politicians LIKE spending money; Proposition 13 limited, somewhat, their greedy quest for ever more money to spend.

But did it really unbalance California fiscal policy?

Chris Reed, writing in the San Diego Union-​Tribune, explains how nutty this charge really is:

[S]ince shortly after Prop. 13’s adoption, property tax revenue increased by 579 percent. That is not a typo. It went up 579 percent.

During the same span, population went from 24 million to 38 million — an increase of 58 percent.

Reed checked his numbers against the inflation rate, and found that “property tax revenue has increased by more than triple the combined rate of inflation and population growth.”

He did a little more checking and learned that property tax revenues went up faster than any other major revenue source!

So Prop 13 simply cannot be the reason for California’s impending bankruptcy. Though the measure limited tax rate growth, and helped homeowners, it did not unbalance the budgets. 

Humungous increases in spending did. Politicians need look no further than their own projects.

This is Common Sense. I’m Paul Jacob.