Comments on: Budget +28: A Tax Swap?

By: flicka47

flicka47 — Wed, 04 Aug 2010 04:56:59 +0000

"Share the pain"? Why is it that every department,bureau,and program in the proposed state budget is getting what amounts to a 20% raise? For some the proposals are even more,and not even considered "on the budget"? Consider the 4,8% "surcharge" the Gov. wants on every residential and commercial property insurance policy to fund another slush fund for CalFire,that even the state's Legislative Analyst's Office says IS a tax. The LAO also wants the Legislature to be a better watchdog on the other Emergency Fund that they accuse CalFire of abusing last year! Great idea there! Give the folks who mis-use state money more money to mis-use! Limit every department to the amount they got last year,no budget increases! That alone would save the state a lot of money!

By: zurda

zurda — Tue, 03 Aug 2010 23:06:10 +0000

As Jean Ross recently wrote, this proposal is an interesting idea, but the problem with it is "The proposed increase would fall hardest on taxpayers who spend all that they earn in their local communities and who don’t benefit from the ability to deduct state income taxes on their federal returns." She goes on to cite "the recommendations of prominent economists who argue that 'tax increases on higher-income families are the least damaging mechanism for closing state fiscal deficits' during an economic downturn." As Gov. Schwarzenegger said over 7 years ago (and "Katia" says above), everyone must sacrifice. I am still waiting to see how those at the top, the wealthiest and the highest earners among us, are sacrificing to "save" California's budgets. Meanwhile, those with incomes at or below median have been asked to sacrifice more every year. It's time to share the pain.

By: Katia

Katia — Thu, 29 Jul 2010 02:31:07 +0000

I am staunchly opposed to an income tax/car tax increase. As Jean Ross stated, most (62%) Californians do not itemize. The way most people are able to itemize their federal taxes is by owning a home. With the current foreclosure rate, I am sure less and less people are able to itemize their deductions and therefore this will just be an increase. We have paid enough as taxpayers for assinine programs that benefit none of the taxpayers. Make the hard cuts. Unemployment numbers may decline when people actually have to get up and find a job. We all have to make sacrifices and I, for one, am tired of the vast majority of sacrifices being made by the people working hard and not sucking society dry.

By: Mark

Mark — Wed, 28 Jul 2010 22:38:37 +0000

As your posting says many people don't itemize and another large group are subject to the AMT, which eliminates any benefit from the deduction of state income taxes. This seems like a nutty idea to me.