A number of tax watch dog and refom groups, and a dozen California Taxpayers groups have banded together to protest leaked details of a proposed budget fix. See the letter and memorandum below.
We, the undersigned representatives of taxpayer organizations in California, continue to oppose
any budget resolution that would increase taxes – temporarily or otherwise. It is unfair to
demand even more of taxpayers when the state already has the highest sales, income, and gas
taxes in the country. Higher taxes will accelerate net domestic out-migration of California’s
most productive citizens.No one denies that California has a serious cash flow problem. But it is inaccurate to assert that
California is running out of money. Taxpayers will generate about $90 billion in General Fund
revenue, approximately the same amount produced in 2006-2007. Families throughout
California have seen far more draconian reductions in revenue on a percentage basis and yet
most find a way to manage. California state government can survive on $90 billion.California continues to overspend. Those agencies and interests which rely on taxpayer dollars
for their existence have rarely had to prioritize spending because they’ve always believed
themselves to be entitled to a blank check. Those days are over. Taxpayers deserve real and
appreciable spending reductions coupled with systemic remedies for waste, fraud and abuse. The
proposed budget doesn’t even come close to accomplishing this objective.Signed:
Howard Jarvis Taxpayers Association (HJTA)
National Taxpayer Limitation Committee (NTLC)
National Taxpayers Union (NTU)
Americans for Tax Reform (ATR)
Citizens Against Government Waste (CAGW)
Americans for Prosperity—California
“National Federation of Independent Business – California”.Alliance of Contra Costa Taxpayers
Central Solano Citizen/Taxpayer Group
Contra Costa County Taxpayers Association
Fullerton Association of Concerned Taxpayers (FACT)
Humboldt Taxpayers League
Lafayette Taxpayers’ Association
Pleasant Hill Taxpayers Association
Solano County Taxpayers Association
Stop Taxing Us: Colton
Sutter County Taxpayers Association
United Californians for Tax Reform
United Organization of Taxpayers
MEMORANDUM
To: Jon Coupal
From: Eric Eisenhammer, David Wolfe
Re: Tax increase package for an average family of four
Date: February 13, 2009
Gas Tax: Proposed 12 cent/gallon increase: According to the Board of Equalization
Californians consumed 15,461,861,205 gallons of gasoline in 2008. California has over
38 million people. Therefore, Californians consume on average 407 gallons per person
or 1628 gallons per family of four. Based on these calculations, a 12 cent increase in the
gas tax would cost the average family of four $195.36.The same conclusion can be reached if one assumes families of four with two cars each
driven 16,280 miles per year at 20 miles per gallon.Reduce Dependent Child Tax Credit from $300 to $100: A tax increase of $200 per
child. 11.1 million taxpayers filed for this exemption in 2006. Cost to an average family
of four (two dependents): $400Increase Sales Tax by a proposed one percent: According to the Board of
Equalization, a one percent increase would result in an annual tax increase of $266 for
an average family. HJTA, using Federal labor statistics, has also drawn similar
conclusionsProposed .5 percent increase in the Vehicle License Fee (from .65% to 1.15%) As a
general rule of thumb, for every $10,000 of car value (a rough determination of your
car’s value can be determined by a Kelly Blue book) would result in an additional $50 of
new taxes per car. Assuming a two-car family, at minimum this would be a tax increase
of $100. However, staff in the Appropriations office estimates that the average increase
will likely be between $130-140.Proposed 2.5 percent income tax surcharge on all income tax liability: In the last
(2007-2008) fiscal year California received $54.8 billion in income tax revenues.
Multiplying this number by 2.5 equals added income tax revenues of $1.37 billion. In
2007, there were 15 million income tax returns. So roughly, every tax return will pay an
additional $91 dollars in income taxes. This tax would apply beginning with the 2009 tax
year and is not retroactive.Based upon these numbers, we believe the impact on the average family of four would be
at least $1100 annually. Further, the numbers for sales and VLF tax increases are
difficult to compute accurately, potentially making this burden higher.
{ 3 comments… read them below or add one }
UC Berkeley Hires Bain Firm for $3,000,000 to Steer Cuts
Please help working class families like ours. I write you and those who read this for help.
Please inform the UCB Chancellor that he should do the high paid job he is paid for instead of hiring consultants from the East Coast to fulfill his responsibilities. High paid smart executives like Chancellor Birgeneau need to do the hard work and make the difficult decisions of their executive job!
Where do consulting firms like Bain get their recommendations?
From interviewing the senior management that hired them and will be approving their monthly consultant fees and expense reports. Remember the nationally known consulting firm who said the right things and submitted recommendations that senior management wanted to hear and fooled government oversight agencies and the public?
Mr. Birgeneau’s executive officer performance management responsibilities (Draft Policy 505) include “inspiring innovation and leading change.” This involves “defining outcomes, energizing others at all levels and ensuring continuing commitment.” Instead of demonstrating his capacity to fulfill his executive accountabilities, Mr. Birgeneau outsourced them. Doesn’t he engage University of California and University of California Berkeley (UCB) people at all levels to help examine the budget and recommend the necessary trims? Hasn’t he talked to Cornell and the University of North Carolina – which also hired Bain — about best practices and recommendations that might apply to UCB cuts?
No wonder the faculty and staff are angry and suspicious. Three million dollars is a high price for us Californians to pay when a high-priced, smart, ‘world-class’ Chancellor is not doing his job.
Please save us tax payers $3,000,000 and request that the Chancellor fulfill his executive job accountabilities!
Milan Moravec 10/9/09
First of all, I AM AGAINST THE TAX INCREASE! Why don’t these California politicians, (all elected ) take an immediate 20% payroll deduction immediately?
Next, all Calif. state employees will be taking a 15% payroll cut.
THEN MAYBE I would be willing to consider some of the proposed measures!! But the rate would be much lower because the money would come from the aforementioned sources!!
Who in the world would hire a mechanic with no experience to tune up your car? But yet some people elected an “actor” with ABSOLUTELY NO EXPERIENCE to be our governor!! Im not saying it’s all his fault, but perhaps with some political know how he could have done a much better job!!! Also, a list needs to be created of all who vote in favor of this tax increase, so they will always be reminded of this terrible burden they try to put on the people!!
Some of these numbers do not make any sense, maybe I am missing something:
For example the average miles driven in a family with two cars does not sound like it is 16,280 miles each for each car. There are a lot of commercial vehicles that may get a lot of miles, and certainly there is a massive truck industry that goes in and out of California and buys gas here, but that does not equate to miles for a family.
Some of the numbers are rather confused in their collective presentation,
For example they talk about the reduced Child Tax Credit which they say 11 million people applied for and then through it out as an average family of four, then they seem to include it in their summary at the bottom. However, I thought that there were issues with the Tax Credit where you do not get 100% of it and that it may be more like 15% and in many cases no effect depending on income. So again there is something that needs to be a little more explained in these numbers.
When I have such questions as to the basic presentation of numbers it makes me wonder what else is a little (or may be more than a little) off here.