The Budget: December 2008 Archives

From the Courage Campaign:

When Arnold Schwarzenegger vetoed the Democratic budget solution last week he gave a lump of coal to every Californian. His veto places the state in danger of bankruptcy as Arnold demands spending cuts and rollbacks of laws protecting workers and the environment. Arnold has become California's own Ebenezer Scrooge. So we thought you might enjoy this special video we put together about Arnold's nightmare before Christmas. What do the ghosts of California past, present, and future have to say to the Governor after a year of failure? Watch the video and see!

In Santa Clara County they want to extend Bay Area Rapid Transit down to San Jose.  To fund this they put Measure B, a 1/8 cent sales tax, on the ballot.  In California all tax measures must pass by a 2/'3 margin and on Election Day the voters approved Measure B by a 2/3 margin.

That would be the end of it, except the vote was very close to exactly 2/3.  For several days it looked as though the measure would fail because it reached a few votes short of exactly 66.66% but when the last ballot was counted the result was 66.78% in favor.  So in the face of a 2/3 vote by the people, a group sued to block certification pending a recount.  Yes, with 2/3 of the public voting for this, a group sued to stop it!

My observation is that this demonstrates something important about the "anti-tax" forces in our state.  Their intent is to hobble our democracy and thwart the will of the people.  It is time for us to take back democracy and return majority vote to tax measures!   

It is nearly impossible to get 2/3 for anything, ever, in an election.  Clearly this 2/3 requirement is about hobbling democracy, not protecting rights.  The public wanted to bring BART to San Jose.  A remarkable 2/3 voted for this, yet a group sues based on the count being close to exactly 2/3.  And in our state legislature the budget process has completely broken down as a 1/3 minority blocks every budget, every compromise and every last attempt to pass sensible measures to run our state!  We are now in a "Fiscal Emergency," cutting back our schools and laying people off during a recession.  This is exactly the opposite of what we should be doing and of what the public wants, but there is no choice because we are hobbled by rules that anti-government extremists managed to sneak past misinformed voters decades ago.

We must get rid of the 2/3 requirement.  It is time.  Democracy and good government are back in fashion so let's get on with it!

(By the way, California's Secretary of State ruled that the law says automatic recounts
occur when the vote count is very close to 50/50.  Since the vote count
was 2/3 the law does not apply even though the election was close. A
judge ruled Tuesday that the attempt to block Measure B came too late.

California's unemployment rate has soared to 8.2% -- third highest in the United States!  We need to stimulate California's economy.  We need a massive jobs and infrastructure investment program, rebuilding our roads and bridges and schools and making our buildings energy-efficient, and hiring more teachers and police and firefighters.  We can do this, while balancing the budget at the same time.

How can we do this?  We can raise taxes on big corporations and the wealthy and use the money to stimulate the economy and balance the budget and get things moving again.

Our economic system is not perfect, so over time income tends to concentrate at the top, which makes it harder for most people to get by.  People spend less and things slow down.  We are seeing this today -- wealth has massively concentrated at the top, and the consumer is "tapped out."  No one is buying cars and Christmas sales will be much lower. 

Taxes on the wealthy and corporations fix this by recirculating money that has bunched up at the top.  Taxes provide the resources that We, the People can then use to stimulate the economy and get it moving again.

The corporations will try to say that this tax increase will slow the economy.  But this isn't what has happened when this has been done in the past.  Actually history shows that taxing the wealthiest and corporations helps our economy.  This is not surprising when you realize that more people with more jobs and money to spend is a good thing in a consumer-driven economy. 

There is a problem, though.  In California we have a rule that we cannot pass any tax with less than a two-thirds vote.  A little over half the people voted to impose this two-thirds requirement -- and now 100% of us are hobbled for doing what we need to do to fix the economy.  Instead of stimulating the economy we have to lay off teachers and firefighters and road workers, further worsening the recession, because cutting budgets is the only option available.  Even if 55% or 60% of us would rather hire people and stimulate the economy, we still can't.

So we need to change this rule.  We need to be able to pass taxes on the corporations and the rich, and get the economy moving again.