Taxes: August 2008 Archives

One more attempt to get a state budget in place collapsed -- blocked by the Republicans because it included tax increases. Republicans insist that the budget be balanced with billions and billions of dollars in cuts in our schools and fire protection and the other things most of us want our state to do.

I would bet that most of California's public doesn't know what is going on with our budget. They only know that there isn't one, and that this is causing problems. It makes people angry, and causes them to lose faith in government.

People know that government employees are being forced to take pay cuts, and many are being laid off. But they really do not know why.

Yesterday's budget vote was 45-30. The public doesn't understand that this means that there were forty-five votes FOR the budget and only thirty votes against, and this is why it failed. They don't understand that because it does not make sense. But because of a trick that the Republicans were able to play on the public the rules are that it takes a two-thirds vote to pass a budget. So an overwhelming vote of 45-30 FOR the budget means that the budget does NOT pass!

Every Republican in the state has taken a vow not to raise taxes on wealthy corporations or massively wealthy individuals. They won't vote to require people who buy yachts or private jets to pay the same sales taxes that the rest of us pay when we buy cars. They refuse to ask oil companies to pay fees when they take our oil out of the ground and sell it to us. (Maybe they understand that such a vote will dry up their campaign funding...)

News stories about the latest budget collapse:

San Jose News:

Although the $105.2 billion budget blueprint garnered a majority vote, 45-30, it fell short of the two-thirds supermajority that California's constitution requires to pass a budget.

. . . The vote "shows clearly that we're not going to vote for taxes," said Assembly Republican leader Mike Villines, R-Fresno.


Wall Street Journal:
"We're fundamentally saying 'no tax increases,'" said Mike Villines, the Assembly Republican leader.

They will require workers to take pay cuts and layoffs. They will cut our school budgets. They will cut transportation, the DMV, road repair, law enforcement, prisons, fire protection. But they will not ask wealthy corporations or extremely wealthy individuals to pitch in.

And here is why: by and large California's public doesn't know this. They are not being informed that this is entirely because a small minority of Republicans refuse to represent the public's interests, choosing to represent the wealthy corporations and wealthiest few people.

In fact, the public likely believes that it is the Democrats who are keeping the budget from being passed. If you Google the word Democrat with the word obstruction and you get about 600,000 results. This is a national result, but it reflects the same strategy in use in California. Republicans spent years accusing Democrats of being "obstructionist" when they were not, as a strategy to pressure them to pass Republican-/corporate-oriented bills. Now, after blocking almost everything that the nation's Congress is doing, the Republicans are campaigning saying that the Democrats in Congress aren't passing anything! Meanwhile a new Drum Major Institute polls shows that 72% of middle-class Americans can't name a single bill passed by Congress in the last two years that benefited them or their families! (Minimum wage increase, stimulus package, college more affordable, SCHIP...)

Less than two in five (38%) middle-class respondents to the Drum Major Institute's new poll say they live comfortably. One-third (34%) say they meet their basic expenses each month with just a little left over for extras, while one-quarter (26%) of middle-class adults would say they just meet their basic expenses (17%) or have trouble meeting their basic expenses each month (9%). And, economy and jobs tops their concerns. They are pessimistic about the direction of the economy. They think it's more likely that Brangelina will celebrate their 25th anniversary than gas prices returning to $3 a gallon.

But they do not understand WHY. They don't make the connection between the corporate-controlled Republican party and what is happening to the country.

How do Republicans get away with this? How are they able to get the public to think so many things that are not true? The Republicans have a vast "noise machine" that tells the public things that are not true. (Remember how they were able to convince so many people that Iraq had attacked us on 9/11?) It costs a lot of money to have a noise machine like this, but they get the money from the very corporations and wealthy individuals whose interests they are representing. So it works for them.

Plain and simple, they are bale to reach the public and tell them stuff, and get the public to believe it. The use of overwhelming repetition is the tactic. I use the word “stuff” here with meaning: it’s just stuff they want the public to believe, with no grounding in reality. They do it, and here we are. Nationally the debt is approaching TEN TRILLION DOLLARS and they are still able to get the public to think taxes are bad. In California they are able to force layoffs and school cuts while refusing to make the ultra-rich pay even the same taxes the rest of us pay.

Please leave comments with suggestions on how to fight this.


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Republican Budget Choices

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Yesterday Governor Schwarzenegger ordered 10,000 state government employees laid off and ordered the wages of 200,000 more cut down to the bare minimum allowed by law.

This is 210,000 people who will not be keeping up with their mortgages or car payments or attending "back-to-school" sales. This is thousands of local retailers that will see a sales decrease. This is how many foreclosures and car repossessions. What will this do to our own jobs and housing prices?

This is 210,000 families disrupted.

Why is this happening? Because the Republicans refuse to make wealthy yacht and private plane buyers pay the same sales taxes the rest of us pay. This is happening because the Republicans refuse to make the oil companies pay us for our oil as they take it out of the ground. (Yes, even as oil companies post the largest ever profits of any companies in the history of the world.) The citizens of Alaska not only don't pay state taxes, they receive a check every year, because their state government asked the oil companies to pay to take their oil. In California the Republicans in state government apparently think they were elected to represent the interests of oil companies, not the public.

Republicans like to say that taxes "take money out of the economy" but the Governor's actions yesterday show exactly the opposite: laying off workers and cutting their wages takes money out of the economy. In fact taxes drive the state's economy by building the infrastructure that enable economic growth. The California state government is police and fire protection and schools and roads and courts and all of those are the engines of economic growth. Taxes fund the services that people want like shorter lines at the DMV and libraries and did I mention schools? These layoffs and wage cuts just illustrate what I wrote a while back about how tax cuts make us poor.

This is the Republican choice -- giving the very wealthiest even more money at the expense of regular working people.


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About this Archive

This page is an archive of entries in the Taxes category from August 2008.

Taxes: June 2008 is the previous archive.

Taxes: September 2008 is the next archive.

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