September 30, 2006

California New Property Tax Initiative

In November, Proposition 88 will be on the ballot and would raise property taxes. In addition to the local property taxes that homeowners already have to pay, this is an added imposition that goes directly to the state of California. Proposition 88 would impose a $50 parcel tax uiniformly on all parcels of property. No regard is offer to the value of the property or the owners' ability to pay.

Again, instead of facing runaway spending head on by initiating a budget freeze, new tax ideas seem to keep generating. 10 million property owners would face these extra higher property taxes if Proposition 88 passes.

Proposition 88 property parcel tax goes to the state. The promoters say it is to go to education, however only 1 percent of non-charter schools and one-quarter of charter schools would be eligible to apply for facilities grants

All new taxes would not only injure taxpayers but would also make California businesses less competitive. New taxes fuel job exodus and taxpayers and severely damage the state economy and state tax revenue.

What’s needed is budget restraints to stop run away spending. The will to conserve the public’s resources is eroded by entitlement mentality that fosters local and state politician to introduce new programs.

Freezing new state spending to a percentage of total revenue would make new taxes obsolete. Making existing programs work by measuring efficiency and cost effectiveness would greatly reduce taxes. The ball need to start rolling towards tax decreases.

Filed under Blog, California by George Bolton

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