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Letters to the Editor
Use this information to write op-eds and letters to the
editor for a local publication. While op-eds can be
longer - 250-500 words is common--the space for letters is
usually pretty limited, more like 250 characters
(letters and spaces).
However, here are some points you can use to construct
your own:
Damaging our state
economy
Tourism
is a major industry in many parts of our state.
Communities benefit directly and indirectly. Closing
parks will seriously damage this industry.
Other cuts will keep companies from coming to
California. Research suggests that the quantity and
quality of public services may play a more important
role in business location decisions than state and local
taxes. This finding reflects the fact that state and
local taxes tend to make up a very small share of
business costs. But, public services can reduce the cost
of doing business. For example, high-quality
infrastructure can reduce transportation and shipping
costs, and high-quality public education can reduce
workforce training costs. Given this, it is not
surprising that most of Californias business executives
favor increasing funding for the states public schools.
Limiting
access to federal funding
Many
of the cuts proposed by the governor will affect whether
or not California qualifies for federal matching funds
and stimulus funding. In some cases, the amount of
federal funds the state loses will be two to three times
the size of the cut.
Hurting
the most vulnerable Californians
While
Republicans are not proposing tax increases for the
wealthy, and want to keep tax cuts for the biggest
corporations, they plan cuts for healthcare and homecare
that the elderly and disabled rely on to survive.
Higher
taxes do not hurt the economy
The
usual argument is that raising taxes will hurt the
economy. However, research proves this untrue. States
that enacted large tax increases between 2002 and
2004--increasing state revenues by at least 5
percent--subsequently experienced stronger average
growth in personal income than states that did not
increase taxes at all. Additionally, average job and
wage growth was essentially the same for states that
increased taxes the most during this period as it was
for states that did not increase taxes. Moreover, states
that raised taxes substantially are considerably less
likely to face budget shortfalls this year than are
states that did not.
Nobel Prize-winning economist Joseph Stiglitz recently
wrote that when the economy is weak: Economic theory
and evidence gives a clear and unambiguous answer: It is
economically preferable to raise taxes on those with
high incomes than to cut state expenditures.
Californians
support fair taxation
The
California Tax Reform Association has identified some
possible revenue areas. Many enjoy widespread support
among California voters according to recent polling.
Some, as noted, have already been proposed. Youll also
see how much the state could raise with these changes
Franchise Tax Board
proposals for improved tax collection:
Financial
Institution Record Match (FIRM): $33 million, $100
million on-going
Require
reporting on difference between book and tax income:
possibly $50 million annually
Crack
down on abusive tax shelters: potentially $40-60 million
or more
Business
use tax collection: $620 million full year, if
implemented in budget year possible $310 million
(Contained in AB 711, Calderon)
Withholding on independent contractors: Revenue likely
to be realized in 2010-11, $2 billion acceleration (per
majority budget in December), $200 million or more
ongoing
Sales tax
collections on remote sales--$100 million state, $50
million local. (AB 178, Skinner, AB 3x 27, Calderon) The
failure to collect sales tax on remote sales hurts
California businesses. The only issue is the point of
collection. Amazon will start collecting immediately, as
they did in NY.
Eliminate
the ability to shelter income in offshore tax havens:
$40 million in 2009-10, $130-160 million on-going
(Contained in AB 1178, Block).
Corporate tax changes:
Cancel
new enterprise zones and phase out the program: $100
million initially, growing over time. A definitive
econometric study has demonstrated this program to be
useless in creating jobs.
Eliminate
capital gains break for exchanges of commercial
property: $350 million
Enact oil
severance tax at 9.9%: $1 billion a year
Tighten
statutory change of ownership rules: Over $1 billion, in
2010-11, increasing over time
Eliminate
the new loopholes placed secretly in the past two
budgets: $805 million in 10-11, growing to as much as
$2.5 billion annually
Increase
Subchapter S tax rate to 2.5%: $600 million
Eliminate
the deduction/exclusion of subsidized parking: $100
million.
Continue
the corporate credit limitation to 50% of tax liability:
$400 million. (Contained in AB 1452)
Other tax changes
supported by the public
Raise top
bracket on income tax: $3-5 billion, depending on rates
and brackets.
Increase
Alcohol fee (or tax): 10 cents/drink would raise $1.4
billion. Contained in AB 1019, Beall
Broaden
the sales tax base to include commodities identified as
intangible: $2-4 billion
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