Thank You Proposition 30 Supporters!

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California state sales tax rates, before and after Proposition 30, compared to the state sales tax rate in 49 others states.

California state income tax rates, before and after Proposition 30, compared to the maximum income tax rate in 49 other states.

Top spenders supporting Proposition 30 tax hikes.  The top two spenders on Proposition 30 are also the top two spenders on California politics in general.  Both are public-sector employee unions as are many of the spenders on Proposition 30 tax hikes.  Many of these groups are also major contributors to the ruling California Democratic Party, another major spender on Proposition 30 tax hikes.

California rated 'F' on Kauffman small business sentiment survey.  California is one of only four states to receive an 'F' rating.  The primary reason cited was "Tax code."

California has the lowest overall state bond credit rating according to a report by the California State Treasurer (#50). Illinois was recently downgraded to below California by Moody's rating agency.

California was ranked the worst-run state government (#50).  The California Legislature has been ruled by the same party, the California Democratic Party for decades and holds nearly 2-to-1 majorities in BOTH Houses.

California was ranked the worst state for business for eight consecutive years (#50) by a nation-wide survey of chief executive officers.  This is the group that decides whether a business stays in California or whether or not to move a business to California.  The primary reason for California's low ranking is our tax structure and governmental regulation--both under the control of our state government.

California was ranked as the state with the least favorable business climate for ten consecutive years (#50).

California's 8th-grade public school students ranked #49 on the National Assessment of Education Progress (NAEP) reading achievement test according to the California Legislative Analysts Office. See "California's State School Rankings Are a Mixed Bag." California has the nation's highest public-school teacher salary and the ranks #49 on student/teacher ratio.

California's 8th-grade public school students ranked #48 on the National Assessment of Education Progress (NAEP) math achievement test according to the California Legislative Analysts Office. See "California's State School Rankings Are a Mixed Bag." California has the nation's highest public-school teacher salary and the ranks #49 on student/teacher ratio.

California ranked #48 on state unemployment--third highest in the nation and well above the national average.  California's unemployment rate remains stubbornly high despite California's fastest-in-the-nation job growth since June 2012.

California ranked #48 on business tax climate and has ranked near the bottom nationally since 2007.

California ranked #47 on state lawsuit climate.

California's 8th-grade public school students ranked #47 on the National Assessment of Education Progress (NAEP) science achievement test. California tied with Alabama and ahead of only Washington, D.C. and Mississippi.  Strangely, Proposition 30 champion Jerry Brown proposed eliminating the 2nd-year California high school requirement in order to save money.

California ranked #47 on economic performance.

California ranked #46 on small business survival.

California ranked #43 on affordable electricity costs--above the national average.

California ranked #42 on high school graduation rates.

California ranked #31 on per student spending in public schools, according to the California Legislative Analysts Office (LAO).  See "California's State School Rankings Are a Mixed Bag." California has the nation's highest public-school teacher salary and the ranks #49 on student/teacher ratio.

California is ranked the #2 most broadly and onerously licensed state for business.

California has the nation's 2nd-highest gasoline and diesel taxes in October 2012.  According to the Legislative Analysts Office (LAO), Proposition 30 will not affect gasoline taxes but will affect diesel taxes.

California has the nation's highest percentage of residents receiving Temporary Aid to Needy Families (TANF) welfare benefits--well above the national average.

California has the nation's largest population and the nation's largest percentage of undocumented immigrants according to the Pew Research Center on Immigration.

The undocumented immigrant population is estimated at 6.7% of the total California population, or about 1 out of every 15 people.

The Federation for American Immigration Reform (FAIR) estimates that undocumented immigrants cost California's public school system about $11.27 BILLION annually, or about double the funds provided by Proposition 30 tax hikes.

Questions Abound About the Major Spenders Behind Propositions 30 and 32

I think it's great that the Fair Political Practices Commission (FPPC) is demanding full disclosure for shadowy Americans for Responsible Leadership (ARL).  Let's hope that the FPPC also receives a full disclosure of ALL of the transactions behind the top two spenders in California politics.  California's top two political spenders disclose a portion of their campaign activities.  Other portions fall into "independent expenditures."

QUESTION:  Who are the two biggest spenders in California politics?

According to the California Fair Political Practices Commission (FPPC), the top two spenders in California politics are ...

1. California Teachers Association (CTA)
2. Service Employees International Union (SEIU)

Both are public-sector employee unions.  Employees are paid using taxpayer dollars.  As a union-only state, California's public-sector employee unions enjoy special protections not available to regular taxpayers.

REPORT:  California Fair Political Practices Commission
"Big Money Talks: The 15 Special Interests that Spent $1 Billion to Shape California Government" (March 2010)
http://www.fppc.ca.gov/reports/Report31110.pdf

QUESTION:  Who were the top two spenders on independent expenditure (IE) groups in California politics between 2000-20012?

1. California Teachers Association (CTA)
2. Service Employees International Union (SEIU)

REPORT: California Common Sense
"Independent Expenditures: The New Money in California Politics"
http://cacs.org/images/dynamic/articleAttachments/21.pdf

QUESTION:  Who are the two biggest spenders supporting Proposition 30 tax hikes on all Californians?

According to publicly available campaign disclosures as of 11/4/2012:
http://votersedge.org/california/ballot-measures/2012/november/prop-30/funding

1. California Teachers Association:  $11.7 MILLION
2. Service Employees International Union (SEIU):  $11.4 MILLION

Despite the $11 million contribution from shadowy Americans for Responsible Leadership (ARL), the public sector unions STILL enjoy a major spending advantage.  The unions enjoyed an overwhelming advantage until the donation form ARL and California's Charles Munger in early October.  Be careful not to double-count ARL's and Munger's spending as it goes both to defeating Proposition 30 and to support Proposition 32.

The third largest spender behind Proposition 30 is the California Democratic Party, who receives large contributions from--as you might expect--the California Teachers Association and the Service Employees International Union.

QUESTION:  Who are the two biggest spenders against Proposition 32, which seeks to limit undue influence from corporations and unions in California politics?

According to publicly available campaign disclosures as of 11/4/2012:
http://votersedge.org/california/ballot-measures/2012/november/prop-32/funding

1. California Teachers Association:  $21.2 MILLION
2. Service Employees International Union (SEIU):  $13.6 MILLION

Despite the $11 million contribution from shadowy Americans for Responsible Leadership (ARL), the public sector unions STILL enjoy a major spending advantage.  The unions enjoyed an overwhelming advantage until the donation form ARL and California's Charles Munger in early October.   Be careful not to double-count ARL's and Munger's spending as it goes both to defeating Proposition 30 and to support Proposition 32.

QUESTION:  Who appointed to the leadership of the California Fair Political Practices Commission?

Governor Jerry Brown.

"SacBee: Jerry Brown assumes uncommon influence over FPPC"
http://inlandpolitics.com/blog/2011/07/21/sacbee-jerry-brown-assumes-uncommon-influence-over-fppc/

QUESTION:  Who is the main proponent of Proposition 30?

Governor Jerry Brown.

QUESTION:  Which top political spender in California politics and major spender for Proposition 30 and against Proposition 32 held a private town hall meeting with Governor Jerry Brown on April 20, 2012?

SEIU Local 1000 (Service Employees International Union)

While ARL deserves to be investigated, the Governor and his cronies not blameless either.  Unfortunately, due to who runs Sacramento, both officially and unofficially, I doubt a FULL investigation of all parties will ever happen.

For Governor Jerry Brown So Loved Public Education ...

For Governor Jerry Brown so loved public education, he sought to eliminate California's 2nd-year science requirement to save money.  This came soon after California's 8th graders ranked near the bottom nationally on the National Assessment on Educational Progress (NAEP) test, just ahead of Washington, D.C. (with some of the nation's highest educational spending) and Mississippi but tied with Alabama.

"California budget proposal would end a science requirement:  Under Gov. Jerry Brown's revised budget proposal, a second year of science would no longer be required for high school graduation. The aim is to save the state money."

http://articles.latimes.com/2012/jun/06/local/la-me-science-schools-20120606

For Governor Jerry Brown so loved public education, he says he WILL NOT CONSIDER and THREATENS TO VETO any attempt to soften the blow of his "trigger cuts" to public education.  That's a little strange since he so rarely ever used his veto power against spending.  I guess we know where public education falls in his spending priorities.  Here are just a few examples.

"California Gov. Jerry Brown Signs $200 Million Movie/TV Production Tax Credit Extension"
http://www.hollywoodreporter.com/news/governor-jerry-brown-200-million-tv-movie-production-tax-credit-extension-375223

"Gov. Brown signs bill spending $2.6B on high-speed rail"
http://www.dailynews.com/news/ci_21102650/gov-brown-signs-bill-spending-2-6-billion

"Jerry Brown signs Dream Act for illegal immigrants"
http://www.sfgate.com/news/article/Jerry-Brown-signs-Dream-Act-for-illegal-immigrants-2327890.php

"Top-paid California legislative employees get pay raises"
http://www.sacbee.com/2012/07/20/4643546/top-paid-california-legislative.html

Californians, we've been played for suckers before.  Remember when 1984's Proposition 37 was going to solve education funding via the Lottery?  Remember when 1998's Proposition 98 was going to end the problem of funding public education?  Remember when 2000's Proposition 20 was going to solve education funding by better spending the Lottery money?  Proposition 30 is just another money-grab by an irresponsible California Legislature and Governor.

VOTE NO ON PROPOSITION 30.  Here's why.
http://soquelbythecreek.blogspot.com/2012/07/california-proposition-30-governor.html

California Governor Brown Accuses Proposition 30 Opponents of Being "Orwellian," Needs to Look in Mirror

California Governor Jerry Brown is such a hoot!  In a bit of apparent irony, Governor Brown accuses opponents of his Proposition 30 tax hikes of using "Orwellian propaganda."

"Orwellian" comes from George Orwell, the British author of a number of great books that are as pertinent today as when they were originally written.

• In 1984, the country "Oceania" is tyrannically ruled by The Party and its Thought Police.
• In Animal Farm, "All animals are equal, but some animals are more equal than others."

Which political party holds nearly 2-to-1 majorities in BOTH Houses of the California ("Oceania"?) Legislature?  Which party holds EVERY state-wide elected office in California?  The answer to both questions is The Party, also known as the California Democratic Party.

Which two of the biggest political spenders in California ("Oceania") politics--who also just happen to be major donors to Governor Brown's campaign and his political party--support Proposition 30 tax hikes with large donations.  As a complete coincidence, of course, Proposition 30 would indirectly funnel more money to these same donors.

Which group was it that, until early October, had a $40 MILLION spending advantage over any opposition to his Proposition 30 tax hikes?  Even after big contributions from opponents, Jerry Brown and his cronies still enjoy a significant spending advantage.
http://votersedge.org/california/ballot-measures/2012/november/prop-30/funding

Who is it that purposely imposed cuts to public education and public safety to spur voters to pass his Proposition 30 tax hikes?  Of course, the Governor bristles at any mention of the word "extortion."

Who is it that created a tax hike that derives most of its revenues from just 2-3% of taxpayers who already pay the highest tax rates and who already pay roughly half of California's income taxes?

Who is it that specifically "electioneered" his ballot initiative to circumvent the 2/3rds majority requirement in the Legislature to raise taxes?

Who is it that, despite his heavy-handed use of official power to pass Proposition 30, calls the opposition "Orwellian"?

Governor Brown, if you want to see "Orwellian," look in the mirror!

Proposition 30 "Trigger Cuts" Threat to K-12 Public Education Adds Up to a Whole Lot of Nothing

If California voters don't pass Proposition 30, Governor Brown forecasts dire consequence that "K-12 schools will lose about $4.5 billion" via the "trigger cuts" provision the California budget that he helped create.

Are these really cuts?  As will all prognostications from politicians, it all depends on what your definition of "is" is.

Let's see what this really means.

Please point your trusty web browser at the California Budget web site.  In specific, find the document  California 2012-2013 Budget Summary Charts (May Revision).  Turn to page 4 and examine Figure SUM-06, duplicated below.
http://www.ebudget.ca.gov/pdf/Revised/BudgetSummary/SummaryCharts.pdf

Find the table entry "K-12 Education" (highlighted above) and notice that the 2012-13 budget year ADDS another $4,502 million (or $4.5 BILLION) in NEW SPENDING (highlighted in red) over last year (2011-12), a 13.2% INCREASE.

If those pesky voters don't pass Proposition 30 tax hikes, let's calculate the net effect on last year's K-12 spending.  I know that the math is difficult, but please try to keep up.  What is $4.5 BILLION minus $4.5 BILLION?  If I'm doing my math correctly, that's pretty close to $0.

This means that a no vote on Proposition 30 keeps K-12 spending roughly the same as last year (and we remember how the kids ran rampant through the streets last year, right?).  It doesn't INCREASE K-12 education by $4.5 BILLION nor does it DECREASE it by $4.5 BILLION.  That's a very much different claim than a $4.5B "cut" to K-12 education.

Is Governor Brown's claim deceptive.  I'll let you decide.

Could we do better by our kids than what the Legislature provided in the budget?  No doubt.  Public education should be a priority.  However, the state has too many other spending obligations that soak up scarce resources.  California will spend $5.4 BILLION to service our debt on General Fund bonds with $3.8 BILLION going just to interest.  See "State of California: Debt Affordability Report (October 2012)", page 22.  And those aren't the only bond obligations!  REFORM is the solution, not tax hikes.

Me? I'm voting NO ON PROPOSITION 30.  Here's why.

http://soquelbythecreek.blogspot.com/2012/07/california-proposition-30-governor.html

See also ...

• BLOG: California Proposition 30: Governor Jerry Brown's Big-Government Tax Hike
  http://soquelbythecreek.blogspot.com/2012/07/california-proposition-30-governor.html

California's Willie Brown on Pension Reform

Willie Brown is a distinguished, career California Democrat.  He was California's longest-serving Assembly Speaker, never to matched due to California's Legislative term limits.  He was also former Mayor of San Francisco.  The California Legislature recently passed a long-overdue pension reform bill that is a small, but necessary, step in the right direction.  Even with the pension reform legislation, California's public pensions are underfunded by tens of billions of dollars.  California taxpayers are on the hook to make up the difference.

Willie Brown has been open and blunt about the Legislature's role in California's poor condition.  Here's his latest his column in the San Francisco Chronicle.  Scroll down as there are multiple topic in his column.
http://www.sfgate.com/bayarea/williesworld/article/Eastwood-s-act-caught-GOP-off-guard-3834031.php

"As reforms go, the pension deal that Sacramento lawmakers reached last week is just a start to correct the mistakes that former lawmakers, including me, have made over the years. 

"But for all the talk about how the changes were needed to make the governor's tax plan [Proposition 30] more palatable to voters this fall, the fact is that lawmakers bucked the unions for one reason and one reason only: They want to keep their jobs.

"The unions are really bent out of shape because they weren't allowed in the room during the negotiations, as they usually are. But why should they be in the room?

"The world is changing. Years ago it was the likes of Southern Pacific and other big businesses calling the shots in Sacramento, and we were all highly critical of them.

"These days it's labor. That's not the portrayal union leaders like to see in the media, but it's the truth. 

"Real reform would be barring labor leaders from sitting on state pension boards. The boards ought to be made up of money managers who are concerned with how much cash is going in and out of the fund. There is no justification for any trustee on a pension board being more interested in spreading benefits than paying for them."

See also ...

• BLOG: Even Liberal Democrat Willie Brown Sees the Problem!http://soquelbythecreek.blogspot.com/2010/03/even-liberal-democrat-willie-brown-sees.html

• San Francisco Chronicle: Jerry Brown won't challenge teachers unionhttp://www.sfgate.com/bayarea/williesworld/article/Jerry-Brown-won-t-challenge-teachers-union-2528743.php
  
• Los Angeles Times: California Teachers Assn. a powerful force in Sacramento: The union, backed by an army of 325,000 teachers and a war chest as sizable as those of the major political parties, can make or break all sorts of deals.
  http://articles.latimes.com/2012/aug/18/local/la-me-cta-20120819

The Hollywood and Media Hypocrisy on California Proposition 30 and Possible Media Bias

Everybody loves higher taxes ... but only when someone else is stuck paying the bill.

Hollywood and media companies have ponied up big for Governor Jerry Brown's Proposition 30 tax hikes.  Here are the readily-identifiable contributions from various media companies to Californians To Protect Schools, Universities And Public Safety, A Ballot Measure Committee Supported By Governor Jerry Brown, which supports Proposition 30. That each media company contributed the same $100,000 makes it appear that this was part of an organized appeal campaign, organized either by the Governor's office or by the unions funding Proposition 30.

• CBS Corporation: $100,000 (New York)
• Disney Worldwide Services: $100,000 (California) (Disney owns ABC/ABC News)
• NBCUniversal: $100,000 (California)
• Sony Pictures: $100,000 (California)
• Viacom International: $100,000 (New York)
• Warner Brothers: $100,000 (California)
• Dreamworks SKG: $100,000 via individual donations from founders Steven Spielberg, David Geffen, and Jeffery Katzenberg
• Reed Hastings, CEO of Netflix contributed $1 million in support of Proposition 30.  However, he is also a major donor to many activities of the California Democratic Party.

Of course, Hollywood and the media will say that they just want to be "responsible corporate citizens" and ensure that everybody pays their "fair share," especially in these "difficult times" for the California budget.  This could be true, but don't forget that the media companies are first and foremost for-profit businesses with large public-relations staffs.

In the midst of massive multi-billion dollar California budget deficit and proposed tax hikes by the Governor, a California Assembly committee approved a bill for another $100 MILLION in tax credits for Hollywood and California media.  Of course, the fact that Hollywood and media are major contributors to the Democratic Party had nothing to do with it.  Democrats hate corporate welfare (unless you happen to be a major party donor). You scratch my back, I'll scratch yours (wink, wink).

Similarly, these same media companies also own major advertising-driven TV networks.  More than $20 MILLION has been raised so far to support Governor Brown's tax hikes, mostly from public-sector and trade unions.  Naturally, a good amount of that money will find its way back to the media companies as TV  political advertising, and that's just for Proposition 30.  Some companies also have outdoor billboard advertising, like CBS Outdoor.  NBCUniversal also own Spanish-language Telemundo.  Interestingly, California Democratic Party heavyweight, Haim Saban is executive chairman for Spanish-language Univision.  Saban is a major donor to the Democratic Party and is listed as one of the 50 most-influential California Democrats.

The two biggest spenders in California politics are the taxpayer-funded, public-employee unions California Teachers Association (CTA) and Service Employees International Union (SEIU), according to a March 2010 report by the California Fair Political Practices Commission.  Other public-sector and trade unions, traditional allies of the Democratic Party, are also major contributors to Proposition 30.  The unions spend big on TV advertising during every election cycle.  I'm sure the studio bosses see it as just good business to toe the party line.  You scratch my back, I'll scratch yours (wink, wink).

Let's not also forget that at least three of this group have "independent" "impartial" news networks, ABC/Disney, CBS, and NBCUniversal.  NBCUniveral has a number of news outlets, including NBC News, MSNBC, and CNBC.  I wonder how "impartial" coverage of Proposition 30 will be.

In full disclosure, I am a shareholder of Disney, a company I generally admire. But lets also not forget that the California Legislature just approved the latest California High Speed Rail plan involving $7.9 billion in state and federal spending.  Why does that matter?  One of the eventual stops on the high-speed rail is in Anaheim, California.  Why there?  Because that's where Disney's Disneyland and California Adventure theme parks are located.  You scratch my back, I'll scratch yours (wink, wink).

Meanwhile, California ALREADY has some of the nation's highest taxes.  Our high taxes, high costs, and ineffectual government have damaged our already ailing business climate, ranked near the bottom nationally, The California Legislature has given its staff a raise, approved additional educational spending for non-US residents, avoided a spending limit like the plague, approved an expensive high-speed rail plan that not even train lovers like, and debates just about anything other than public pension reform.  The California Legislature needs to stop the scratching and winking and perform their constitutional duty.

One of those duties it to debate tax reform and rates.  In the Legislature, tax hikes requires a 2/3rd majority as a protection for the 1/3rd minority of voters that pays the bulk of California's income taxes.  Meanwhile, Governor Brown's, union-funded Proposition 30 is purposely "electioneered" to circumvent the 2/3rd requirement.  Proposition 30 is an abuse of the democratic initiative process.

Californians, stop the obvious corruption in our political system and Proposition 30.  Vote NO on Proposition 30 this November.  You can learn more about Proposition 30 here.

http://soquelbythecreek.blogspot.com/2012/07/california-proposition-30-governor.html

See also ...

• California Gov. Jerry Brown Signs $200 Million Movie/TV Production Tax Credit Extension
  www.hollywoodreporter.com/news/governor-jerry-brown-200-million-tv-movie-production-tax-credit-extension-375223

Was the California Senate Censorship of Proposition 30 Intentional? You Decide!

UPDATE:  Pro Tem Steinberg has since apologized for cutting off the cameras.  Please read on to decide if there was more to the decision than he lets on.

As reported in the Sacramento Bee, the Democrat leader in the California Senate, Darrell Steinberg ordered that cameras to the public feed be turned off, just as they were about to discuss Proposition 30.  Proposition 30 is Governor Jerry Brown's tax hike initiative.  Was this such a big deal?  You decide.

• One of the biggest funders supporting Proposition 30 is the Service Employees International Union (SEIU).  According to MapLight, a site that tracks campaign spending, SEIU has spent nearly $6.2 million as of 2-OCT-2012 in support of Proposition 30.  Public television station KCET has a bit more detail, showing contributions from SEIU Local 1000 and the California State Council of Service Employees Issues Committee.

• According to his official biography, Darrell Steinberg was formerly an "attorney for the California State Employees Association for ten years."
• SEIU Local 1000 is an affiliate of the California State Employees Association.
• According to a March 2010 report by California Fair Political Practices Commission (FPPC), SEIU is the second-largest spender in California politics.
  
• According to his official biography, Darrell Steinberg was the author of 2004's Proposition 63, which asked a simply majority of California voters to impose a 1% surtax on those earning $1 million or more.  Many in California view Proposition 63 as an abuse of the democratic initiative process, and at least one lawsuit was filed claiming that Proposition 63 was an unconstitutional violation of state and federal equal protection clauses.  Some also see Proposition 30 as a similar violation.  To avoid such criticism, Proposition 30 has a FOUR-year sales tax increase that applies to ALL Californians.  The income tax increase only applies to the top 2-3% of California taxes but lasts for SEVEN years.
• If Governor Brown's Proposition 30 passes, Steinberg's Proposition 63 adds another 1% on top.  Combined, Proposition 30 and Proposition 63 would give California the nation's 1st, 2nd, 3rd, and 5th highest state income tax rates in the nation.
  
• SEIU is a major contributor to Darrell Steinberg, Governor Brown, and to the California Democratic Party.  SEIU holds enough political power and sway to justify a private town hall meeting with Governor Jerry Brown.

Based on this evidence, does it appear that Darrell Steinberg has a conflict of interest over any public discussion of Proposition 30?  I think so.  Do I think that Darell Steinberg cut off the cameras to avoid publicly discussing Proposition 30?  Yes, because the more that voters learn about Proposition 30, the less they like it.

It's unlikely that I will ever make enough to be affected by the Proposition 30 tax hikes.  However, I'm smart enough to realize that they're unfair and will likely further poison California's ailing business environment.  My fellow Californians, please VOTE NO on PROPOSITION 30.

http://soquelbythecreek.blogspot.com/2012/07/california-proposition-30-governor.html

California Proposition 30: Governor Jerry Brown's Big-Government Tax Hike

California Governor Jerry Brown, in partnership with public-sector unions such as the California Teachers Association (CTA), the California Federation of Teachers (CFT) and the Service Employee International Union (SEIU) proposes big tax hikes on a small number of Californians in order to close a multi-billion dollar budget hole.  Despite the budget hole, threats to public safety, and threats to close public schools for weeks, the California Legislature continues to block prudent comprehensive public-pension reforms, to fund tuition benefits for children of undocumented workers, and to fund a not-so-"high-speed" rail line between Merced and Bakersfield.  The California Legislature has NO SPENDING PRIORITIES.

The latest incarnation of the Governor's plan will appear on the November 2012 ballot in California as Proposition 30.

California already has some of the highest state taxes in the United States.  Those earning over $48,000 incur a 9.3% state tax rate--California's second-highest rate, which by itself is already the fourth highest in the nation even without any tax hikes.  Only the top tax rates in Hawaii, California, and Oregon are higher.

If passed, Proposition 30 would burden California the nation’s first, second, third, and fifth highest marginal state tax rates!  The following chart compares California's current state income tax rates and proposed increases against the highest income tax rates in other states.  Billed by the Governor and his allies as a "temporary" tax hike, these rates would be in effect for seven years.  The income tax increases fall exclusively on the top 2-3% of taxpayers who already pay roughly half (or more) of California's entire tax bill.

In order to appear "fair" and "broad-based", Proposition 30 also increases California’s state sales tax, already the nation’s highest. The following chart compares California’s state sales tax rate to the other 49 states.

Despite all of Governor Brown's talk of tax fairness, Proposition 30 circumvents the Legislature’s 2/3rd requirement to raise taxes. In fact, Proposition 30 is “electioneered” by Governor Jerry Brown and his allies to only require a simple majority to pass. Proposition 30 asks the 50% of California voters--who pay little or no state income tax--to pass a big tax increase on the top 2-3% of California taxpayers, who already pay roughly 50% of ALL state income taxes. Proposition 30 is an abuse of the so-called “democratic process”, especially for so-called Democrats. Is this what “democracy” looks like?

Proposition 30 asks California voters for a four-year, 0.25% rate increase to the state sales tax, which equates to a 3.4% rate increase. The sales tax hike applies to ALL Californians. Proposition 30 also asks voters for a seven-year increase on only the top 2-3% of income taxpayers.  This equates to a 9.7% to 24.4% rate increase for the taxpayers who ALREADY pay the highest effective tax rate and roughly 50% of all state income tax.

In 2009, the average tax liability for every California taxpayer was about $2,655.  However, averages usually hide some important details.  For example, the average human being has one testicle and one ovary.  The bottom 50% of taxpayers (and possible voters) pays between $0 and $500 in TOTAL California income tax.  Meanwhile, Governor Brown's tax increase targets the top 2-3% of taxpayers who earn $250,000 or more ever year, despite that they ALREADY pay the highest effective tax rates.  These taxpayers also already pay between $9,000 and $1.3 million.

The primary reason that California income tax revenues collapsed during the financial crisis is that INCOMES collapsed for ALL Californians, but especially for those at the top. The following chart shows the incomes and income taxes collected in 2007 (before the financial crash) and in 2009 (after the financial crash).  Why the big swings in income and taxes for those making over $1 million?  Unlike the federal tax system, California treats capital gains exactly like ordinary earned income.  The California Legislature loves all the extra revenue generated from stock market and real estate gains.  Unfortunately, this over-reliance means huge decreases during market crashes.  The subprime crisis causes simultaneous crashes is BOTH real estate and on Wall Street.  The California Legislative Analysts Office (LAO) has long recognized this problem as a cause for California's revenue volatility.

Despite that top taxpayers still  pay the highest marginal tax rates, Proposition 30 wants to increase those rates even more, leaving California even MORE VULNERABLE to future market swings. 

California ALREADY suffers from its high taxation. The result is that California suffers from a poor business tax climate that drives away jobs and causes are above-average unemployment.  Many Democrats within the California government refuse to believe that high taxes have any effect on California's economy, despite ample evidence to the contrary.  Why have California's tax revenues dropped?  It is NOT because tax rates are too low.  The fundamental problem is that California's private-sector economy is stagnating while government expenditures have increased.  Simply raising taxes, even if it is limited to the top 2-3%, will NOT fix what ails California.

California currently has the nation’s 3rd-worst unemployment rate, beating out only Rhode Island and Nevada.

Naturally, the public-employee unions are bankrolling Proposition 30 and have spent over $31.6 MILLION as of November 3, 2012.

Many of these groups are also recognized as the biggest spenders in California politics, according to a March 2010 report by the California Fair Political Practices Commission.  The California Teachers Association (CTA) has spent $10.7 MILLION on Proposition 30 so far and the Service Employees International Union (SEIU) has spent over $11.1 MILLION as of 11/3/2012.  The spending will likely be even higher by the time the election is over.

What kind of access does that kind of money buy? Just ask California Governor Jerry Brown, who has private town-hall meetings with California's public-sector unions.  Even career Democrats such as Willie Brown (no relation)--California's longest-serving Assembly Speaker and former Mayor of San Francisco--recognize that Governor Brown is a prisoner of the teachers unions. These are the same unions that are bankrolling his tax hike and likely will be out campaigning for it before November.

Meanwhile, the amount of money that the State of California spends continues to grow.  State spending is up 23% since 2000, even accounting for inflation.

Political columnist Dan Walters asks some very good questions about Proposition 30.

Why should we pay more ...

• when we already have one of the nation's highest tax burdens,

• when the Legislature is handing out raises to its staff,

• when politicians haven't curbed rapidly increasing pension costs,

• when they're wasting billions on prisons, 

• when they've shunned a spending limit,

• when they've squandered money on a hapless bullet train project and unworkable computer systems, 

• when they're spending tens of millions on illegal immigrants' college educations, and 

• most importantly – when the state is mired in recession and 2 million-plus are jobless?

Fellow Californians, I urge you to VOTE NO on PROPOSITION 30!  It's bad tax policy and an abuse of the democratic system.

See also ...

• California Secretary of State: Text of Proposition 30
  http://ag.ca.gov/cms_attachments/initiatives/pdfs/i1057_12-0009_governors_initiative_v3.pdf
• California Legislative Analysts Office: Proposition 30
  http://www.lao.ca.gov/ballot/2012/120208.aspx
• MapLight.org: California Proposition 30
  http://votersedge.org/california/ballot-measures/2012/november/prop-30/funding
  
• KCET: Prop 30 Cheat Sheet: Jerry Brown's Tax Measure
  www.kcet.org/news/ballotbrief/elections2012/propositions/prop-30-cheat-sheet-jerry-browns-tax-to.html
• KCET: Who's Funding Prop 30, Jerry Brown's Temporary Tax for Education and Guaranteed Public Safety Funding?
  www.kcet.org/news/ballotbrief/elections2012/propositions/database-whos-funding-prop-30-temporary-tax-to-fund-education.html
• Ballotpedia: California Proposition 30, Sales and Income Tax Increase (2012)
  www.ballotpedia.org/wiki/index.php/California_Proposition_30,_Sales_and_Income_Tax_Increase_(2012)
• California Secretary of State: Political Committees to Support or Oppose Proposition 30
  http://cal-access.sos.ca.gov/Campaign/Measures/Detail.aspx?id=1346100&session=2011
• Election Track: Californians Working Together To Restore And Protect Public Schools, Universities And Public Safety
  www.electiontrack.com/lookup.php?committee=1346049
• Election Track: Californians To Protect Schools, Universities And Public Safety, A Ballot Measure Committee Supported By Governor Jerry Brown
  www.electiontrack.com/lookup.php?committee=1343257
• Election Track: Reclaim California's Future - Yes On Prop. 30
  www.electiontrack.com/lookup.php?committee=1347688
• Election Track: Educators And Working Families To Restore California, A Coalition Of Educators, Community Groups, And Grassroots Organizationswww.electiontrack.com/lookup.php?committee=1344079
• Dan Walters: "Censorship rears its ugly head in California Senate"
  www.sacbee.com/2012/08/10/4712081/dan-walters-censorship-rears-its.html
• Sacramento Bee:  "Viewpoints:  Prop. 30 will hurt state's economic prospects"
  http://www.sacbee.com/2012/10/06/4885977/viewpoints-prop-30-would-hurt.html
• Santa Clarita Valley Signal: "Kevin Korenthal: Prop 32, not 30, deserves your vote"
  http://www.the-signal.com/section/33/article/77367/
• Santa Cruz Sentinel: "Prop. 30 neither honest nor transparent" http://www.santacruzsentinel.com/opinion/ci_21814545/harold-griffith-prop-30-neither-honest-nor-transparent
• Daily Titan: "Prop 30 can't save California from debt" http://www.dailytitan.com/2012/10/prop-30-cant-save-california-from-debt
• CATO: "86ing the Arguments for California Props 30, 38"
  http://www.cato-at-liberty.org/86ing-the-arguments-for-california-props-30-38
• BLOG: "Was the California Senate Censorship of Proposition 30 Intentional? You Decide!"
  http://soquelbythecreek.blogspot.com/2012/08/as-reported-in-sacramento-bee-democrat.html
• BLOG: "The Hollywood and Media Hypocrisy on California Proposition 30 and Possible Media Bias"
  http://soquelbythecreek.blogspot.com/2012/08/prop30mediabiasquestions.html
• BLOG: Proposition 30 "Trigger Cuts" Threat Add Up to a Whole Lot of Nothing http://soquelbythecreek.blogspot.com/2012/10/proposition-30-trigger-cuts-add-up-to.html