California is one of the most heavily taxed states in the union. And with recent increases in the income, sales, and payroll withholding California state taxes, Californians are burdened with even higher taxes during a severe economic recession. Independents are strongly opposed to high California state taxes and consistent tax hikes, which fail to resolve the root cause of the state’s deep financial problems. Excess borrowing and spending have generated out of control deficits and spiraling debt. If a more sensible California state tax policy is not enacted, high tax rates and profligate spending will continue to drive individuals and businesses out of the state at an alarming rate.
Proposition 26 on the November ballot attempts to answer that question. Opponents say the business, anti-tax group backed measure defines a "fee" too narrowly and that doing so will cost the state at least $1 billion in revenue.
Philadelphia officials set a disturbing precedent when they recently sent out demand letters to local bloggers and website operators to pay a business licensing fee and fork over a portion of their nonsalaried income, or face stiff penalties. Will other cash-strapped cities follow Philadelphia's lead and tax bloggers as business owners?
It was not so long ago that observers of America’s political scene, both pessimistic and optimistic, predicted that a Value-Added Tax (VAT) would be the inevitable future of our current spending.
With the economy still stagnant and job growth the first priority of most Americans, and with Californians some of the hardest hit in both the private and public sector, bad economic news is something the state can ill afford to hear.
Recently, at a special board meeting, the California State University (Cal State) trustees voted to increase undergraduate and graduate fees five percent beginning Fall 2010. The increase will raise the annual cost to $5,097 per year not including housing or books. This increase follows a 32 percent increase in 2009.
The recent debate over further economic stimulus in the US Senate has produced a predictable round of new infighting over budgetary philosophy from both the Democrats and Republicans, albeit one with special relevance for California’s people.
