 |
 |
The latest budget gimmick is state Sen. Mark Leno’s proposal, unveiled Friday, to allow counties to ask voters to raise the vehicle license fee.
The VLF, the dreaded car tax of the 2003 recall, is a big contributor to the state’s chronic budget deficits. Leno, D-San Francisco, is right about that. When Arnold Schwarzenegger cut the VLF rate in 2003, it took about $6 billion a year out of local government – cities, counties, schools. To avoid the political fallout of the politically popular decision, Schwarzenegger promised the state would make up the lost revenue, driving its own deficit that much higher.
We can debate whether the state kept its promise, but that misses the point. The VLF was set at 2 percent of a vehicle’s value for 50 years, until a cash-flush state cut it in 1998 (about the same time lawmakers started jacking up pension benefits, but that’s another story). The governor was granted authority to raise it if finances got tight. Gray Davis did in 2003, and found himself out of work.
The car tax has an important parallel with Proposition 13. In both cases, a state surplus became the justification to cut local taxes. In the fallout, the state has asserted more and more control over local government but hasn’t provided the revenue to match the mandates. One of the few exceptions is redevelopment, and the current spending spree by local redevelopment agencies is every bit as dishonorable as the state’s manipulation of the revenue stream.
What makes Leno’s proposal a gimmick is that it just builds on the same broken foundation. The state needs to overhaul its tax code, and probably its constitution, to match taxes and services, to give elected officials flexibility over both and to allow voters to hold them accountable.
Unfortunately, I’m not betting on that happening any time soon.
– Jim Sweeney
Subscribe by Email
Follow us on Twitter
Instead of of rising our Car Tax how about a Bike Tax. I see cities spending a lot of time and effort on bike lanes and bike boulevards. Yet they (bicyclist)don’t contribute to the pot. Or if that’s not to your liking how about a Shoe Tax. Those Pedestrians always seem to be in my way when I’m going to work in my car.
A tax, is a tax, is a tax, is a tax!
And the money spent how effectively?
Excellent points Dan and Reality! I can not disagree with you one bit!
I didn’t vote for Leno, personally. My biggest problem with him was that he was a city dweller(just like Migden). Hopefully the redistricting commission will sever him from our midst and we can have some local representation. But, hey, ya get what ya vote for and the majority of the voters liked him…probably the only reason is that there was a (D) after his name.
Well said, Dan Delgado.
A simple review of a few government budgets will show that employee pay and fringe benefits have risen far faster than revenue or the economy.
Bringing those costs back in line with what they were 10 years ago would do more to balance the budget than anything else we could do.
But, heck, why do that when we can close parks.
“The least we should do is revert back to where they were before Arnold took over.”
Money, et al,
How come all you guys (and gals) in favor of restoring these taxes never mention restoring the public employee pensions as well. These two things go hand in hand. Refusing to acknowledge that simple fact is what got us in this fix.
Of course Leno doesn’t care if people who rely on cars for transportation get a tax raise, most city people don’t rely on their cars! How does that help the struggling car market, people will hang onto their older cars, too. Politicians just don’t think.
Cutting the vehicle license fee was one of the most profoundly stupid things Shwartzenegger and his supporters like Daryl Issa (who drove the recall effort against Davis) ever did. The least we should do is revert back to where they were before Arnold took over. We also need to go after CA based companies that stash money in offshore accounts in order evade paying taxes owed to the state.
Automobile taxes used to be connected to expenses associated with automobiles: roads, DMV, police, etc. Taxing cars to fund the general expenses of local government is a bad idea.
If Leno wants to aid local governments, giving them a larger percentage of the sales taxes collected in their communities makes more sense. Of course, that would mean the state would have give up some revenue. I’m not holding my breath.
The first solution to a politicans problem, raise taxes! In the real world of business, companies cut costs and employees to stay viable.
Why is this such a difficult concept for California elected officials to understand. Increasing taxes to pay for public employee pensions, welfare programs and failing schools drives business and productive people out of the state.
When public employees can retire with pensions exceeding 100% of the high salary they earned while employed, the system is corrupt and wrong. The nose has been in the trough much too long.
Think green, money, tax money that is and think sustainable. Reduce the size of government and the taxes we all pay and then explain why more taxes will make life better in the golden state.
Making automobiles prohibitively expensive. Making property ownership too expensive.The immigration thing.The why don’t we manufacture much anymore thing.The spending money we don’t have thing.The preoccupation with ‘Smart’ trains’n bicycles thing.Health care thing. Money for their things,but not basic services thing. The redevelopment thing. Just about everything that seems askew,inequitable,against common sense(to our detriment).Is the SAME THING:Agenda21.If you smell something fishy,there’s the fish.Google:Freedom Advocates,DemocratsAgainstUNAgenda21,
SB1619,Agenda21fordummies.
Agenda21 should be the subject of our study, and dissent.
I would never vote to give these fiends a single dime- it’s wasted on stupidity year after year with no accountability and I’m sick of it. I have to live on what’s in my pocket and it’s time California do likewise. Period.
2% of a vehicles worth? So the average car at $30,000 would be $600 per year registration fee? Obscene….
“(about the same time lawmakers started jacking up pension benefits, but that’s another story)”
That’s not another story. That is the story. How can we talk about putting the tax back on the books unless we also revert the pension benefits back to 1998 levels as well.
This is just a thought. Maybe we should ask counties to live within their means instead of taxing people who still have jobs. Maybe we should look into why people think it is alright to live off the state instead of getting a job. If we all earn our way and quit paying for social programs for slackers the state and it’s counties could live within their means.