Thursday, January 20, 2011

Tax Hikes & Spending Cuts The Taxxy Brown Way...

I will give you, as I have said many-a-time before, it was most definitely time for Arnie to go. I would have much rather seen, however, a legitimate business woman as our new Taxifornia Taxernor than lifetime politician and union whipping boy Taxxy Brown. If this were a Presidential election, we would have just re-elected Jimmy Carter. Way to go, Taxifornia!

So, now, that the issue of Taxernor is settled until we can try to get a business person in there again, let's talk about the main reason that I am concerned about Taxxy Brown...taxes. Sure, we'd all like to pay nothing (and hey! half of you actually do!), and I realize that we do need to pay something so that we can fund our infrastructure, military, and what-not, but for those of us that are in that 50% that do pay taxes, should we not undertake the initiative to try to keep as much of the money that we earn that the other 50% get to pay - nothing? It may not be a reality, but at least it gives us something to shoot for, right?

That being said, I must also say that Taxxy Brown is at least, unlike most Spendocrats, willing to cut some spending, taking a step closer to at least getting the 50% who pay no income taxes to help foot the bill as well. He as also said that he is going to take his tax increases to the voters, so we will see if that actually happens.

What taxes are going to get raised and what spending is going to get cut if Taxxy Brown gets his way? A lot of programs are going to be reduced, and the temporary tax hikes implemented by the Taxinator will be kept in place for another five years! Five years?! Yep, five years!:

Income: A 0.25 percent surcharge on each personal income tax rate, which would generate $3.2 billion in the next 18 months. But, if your personal income tax rate is zero, does that mean you have to pay 0.25 percent? What do you think?

Dependents: A reduction in the tax credit for dependents from $227 to $99, for $1.9 billion over 18 months.

Sales tax: A 1 percentage point increase in the state sales tax - from 5 to 6 percent, bringing in $4.5 billion over 12 months.

Licenses: An increase in vehicle license fees from 0.65 percent of a car's value to 1.15 percent, bringing in $1.3 billion over 12 months.

Proposed spending and service reductions
Among Gov. Jerry Brown's proposed solutions to help close a $25 billion deficit are the following:

Cell phones: The state pays for about 96,000 cell phones for state workers. Brown would cut that number by at least 50 percent.

State vehicles: State workers use about 13,600 state-owned cars, pickups and vans, not including about 12,000 used in public safety. Only cars needed for critical functions would be kept.

Cal Fire: In the many wildland areas that have been developed, emergency response would be transferred from state firefighters to local firefighters. State firefighters would be cut from four workers per engine to three.

State jobs: 57,000 workers would get 10 percent pay cuts, and hundreds of state jobs would be eliminated as the state transfers more responsibilities to counties in foster care, incarceration and social services.

Redevelopment agencies: Redevelopment agencies would be phased out to save billions of dollars, although they would be allowed to finish existing projects. The money saved would first go to the general fund and in future years would be given to schools, cities and counties.

Courts: A permanent reduction of $200 million annually for the state's courts.

Governor's office: A 25 percent reduction in spending, or $4.5 million cut.

Parks: State parks would lose $11 million more in funds, requiring continued park closures.

Medi-Cal: Benefits would be capped, with limits placed on prescriptions (six per month per recipient ) - unless they are lifesaving - hearing aids ($1,510 a year) and durable medical equipment ($1,604 a year). Co-payments of $5 would be required for most visits. Doctor's visits would be limited to 10 per year.

Disabled and elderly: California is one of the few states that provide day care centers for disabled and elderly adults who might otherwise be in nursing homes; Brown would eliminate this program altogether to save $176 million in 2011-12.

Healthy Families: Fewer than 1 million children receive medical insurance under this program because their families do not qualify for Medi-Cal. Brown would eliminate the vision benefit and increase premiums and co-payments.

So, that's the laundry list that Taxxy Brown is going to propose. We'll have to see if it makes it to the ballot, and what he is going to do when voters shoot it down...

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