CA Prop 30 and 38: Yes or No?

On November 6, among many important decisions awaiting California voters will be a decision on proposition 30—raising taxes on people earning $250,000 or more and state sales tax from 7.25% to7.5%. But the most difficult decision may be whether to pass proposition 38 which will raise taxes for most hard-working Californians—in a way, voters are asked to raise their own taxes.

Why are these 2 propositions important to vote for/against?

Prop 30: Vote NO!

Summary:

—State sales tax: from 7.25% to 7.5% (increase of 3.4%)

—Create new (temporary for 7 years) state income tax brackets based on taxable income of:

     –from $250,000 to < $300,000: 10.3% (an increase of 11% over current rate of 10.3%)

     –from $300,000 to < $500,000: 11.3% (an increase of 22% over current rate of 10.3%)

     –from $500,000 to < $1,000,000: 12.3% (an increase of 32% over current rate of 10.3%)

     –over $1,000,000: 13.3% (an increase of over 29% over current rate of 10.3%)

Yes?

At first this glance, for the 90-something-percenters of Californians, a YES vote on proposition 30 is not that difficult. Most of us are not fortunate enough to have taxable income of more than $250,000.

But then most of hard-working people can hardly afford to pay a 0.25% increase in sales tax in today’s economy neither.

And the threat of cutting an additional $6 billion in education for K-12 and junior colleges are often reminded by supporters of this proposition to scare parents into voting for these tax increases.

No?

And just who are the supporters? The two teachers unions (California Teachers Association and American Federation of Teachers) have donated over $11.5 million (of $38 million total) trying to pass prop 30.

Why? Prop 30 does not deal with cutting waste in education.

And prop 30 does not guarantee additional funding for schools neither. The truth why the teachers unions spend millions of membership dues trying to pass this proposition is “The dirty little secret is that the new revenues are needed to back fill the insolvent teacher pension fund…” as pointed out by the Wall Street Journal. (Click here to read more)

Jerry Brown followed Obama’s class warfare by waging this as a battle against the “millionaires”. But is it fair to raise taxes on people making over $250,000 (in taxable income) by 11% to 32%?

The way I see this matter is:

—First, it’s been proven that it’s bad idea to raise taxes in a recession. And we’re still in a recession nationwide as well as in California. Heck, even president Obama agreed. In 2009 during a visit to Indiana, Obama said “Normally, you don’t raise taxes in a recession…You don’t raise taxes in a recession. We haven’t raised taxes in a recession.” Of course, Obama is one who can speak from both sides of his mouth. He is running his campaign on the promise to raise taxes on the top 1% which will bring in an additional $89 billion in tax revenue (a drop in the bucket of his over trillion annual deficit). AND we’re in a new recession, an Obama recession.

—Second, rich or poor, Californians use the same services that tax money provide. My neighbor who may make over a million a year, but if he sends his children to public schools, his children and mine will be sharing the same schools and same teachers. He and I definitely use the same roads, bridges and highways. So, why does he need to pay more income taxes than me, again? The idea of taxing people as penalty for their success will not help the free enterprise economy. It will discourage capital investments which in turn slow down economic and job growths.

Apparently, Jerry Brown agrees with me now –after helping to put prop 30 in ballot. He recently signed AB2026 and SB1197 that will extend tax break for 2 years to encourage film production to remain in California. Assemblyman Felipe Fuentes, who introduced AB2026 for voting, said “What we’re doing with this bill is retaining and creating jobs…” in California.

Prop 38: Vote NO!

This is a slam dunk for me. If I don’t trust Sacramento with additional billions of tax money from my rich neighbor, I surely will not trust Sacramento with $10 billion more in tax revenue from most of my fellow hard-working Californians.

Send no additional tax money for Sacramento to spend!

CA Smurfs

Sacramento has proven that it should not be trusted with tax payers’ money.

From one mess to another mess, they have run out of solutions.

The mess that California is in right now is that it’s too “blue” – as in Democrat “blue”.

Too “blue” as blue as 5,428,458 little “smurfs” – many of them illegal voters – who voted for Jerry Brown in 2010.

Is California too “blue” or too dependent on government?

Ch3 Nguyen

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