Feeds:
Posts
Comments

Archive for the ‘Tax Legislation’ Category

State Senator Bob Hertzberg is a smart man; smart enough to know the power of language. According to his bio, as an undergraduate English major, he wrote a 400-page handbook titled A Commonsense Approach to English.

To paraphrase a quote attributed to the late US Senator Everett Dirksen: A deft turn of a definition here, and a subtle re-characterization there, the next thing you know, we are dealing with some serious money!

And that has been Hertzberg’s game plan since he returned to the legislature in December 2014.

He introduced SB 8, a bill cloaked by a seemingly harmless name – the Upward Mobility Act. The senator described it as a tool to “modernize” the state’s tax structure. He admitted it would be designed to yield another $10B in tax revenue.

The bill died, but that did not stop Bob from reintroducing a replacement: SB 1445.

As SB 8 proposed, this new bill would extend the application of sales tax to services, a direct hit to all segments of society – the middle class, most notably. As he did with SB 8, he is characterizing it as “modernization.”

The only thing being modernized is the state’s access to our wallets.

But the “serial hugger” is not stopping there.  He again whipped out his English to Taxation dictionary to conjure up SB 1298.

His objective is to do an end run around Prop 218’s requirement for voter approval of tax increases by redefining “sewer service” to include stormwater projects. Perhaps “serial wordsmith” would serve as a better moniker for him. Please read the excellent editorial concerning 1298 in the Daily News. 

The bill has a worthwhile objective.  It is designed to encourage recovery of stormwater. No one is arguing with the benefits it offers to our drought-stricken state.

But it is dangerous to override the benefits of government transparency and the legislative process.

Californians are being asked to pony up more cash to fund a growing list of expensive projects.  In Los Angeles alone, we are being asked to pass a permanent increase in the sales tax for the MTA.  The city and county are considering spending over a billion dollars to provide housing to the homeless.  There is also the trainwreck of HSR absorbing funds that could be used to enhance the state’s water capacity.

Our state and local governments have no grasp of prioritization.  Capital budgeting is completely absent in the minds of Hertzberg, his colleagues in Sacramento and counterparts at the local level.

Taxpayers have a right to weigh in on what needs attention and the means of paying.  To do so requires presenting the big picture of competing needs. Let the people decide what is most important and authorize appropriate funding levels.

We do not have unlimited funds; we can only afford what can be sustained without breaking the bank.

Sneaking around the voters and playing word games, as Hertzberg has been doing, is disrespectful to all of us.

 

 

 

Read Full Post »

When State Senator Bob Hertzberg announced his tax proposal, SB8, in late 2014, he made no secret of using it as a tool to raise taxes by a net $10 billion – that is, per year.

The senator tried to pass it off as “tax modernization.”

He even gave the bill a deceivingly benign name: the Upward Mobility Act. Loosely translated, that means the Up Your Wallet Robbery initiative. I would have been at least conciliatory towards it had he been straightforward and called it a tax increase, rather than obfuscating its purpose. Hertzberg has generally been a straight-shooter in his career, so this slight of hand attempt was out of character, making it all the more disappointing.

A year later, it effectively died. It received no traction in Sacramento. Governor Brown shrugged it off; the Senate Governance and Finance Committee, which Hertzberg chairs, did not deem it worthy to progress. It officially died January of this year.

He said he would reintroduce it.

He did in February – SB1445.

This time, Hertzberg made no fanfare, perhaps learning a lesson from the bad publicity he created with SB8. For that matter, the bill contains only intent language at this time. It appears he is playing it close to his chest.

Does he still want to raise $10B?

As I stated in an earlier article on the subject, Hertzberg needs to share how the bill would impact each segment of the state’s taxpayers.

He did not in 2015, although he must have had an idea. One does not arrive at a figure as large as $10B without having at least penciled it out in some detail.

Let’s see what he does this year.

Read Full Post »