Add news
March 2010 April 2010 May 2010 June 2010 July 2010
August 2010
September 2010 October 2010
November 2010
December 2010
January 2011
February 2011 March 2011 April 2011 May 2011 June 2011 July 2011 August 2011 September 2011 October 2011 November 2011 December 2011 January 2012 February 2012 March 2012 April 2012 May 2012 June 2012 July 2012 August 2012 September 2012 October 2012 November 2012 December 2012 January 2013 February 2013 March 2013 April 2013 May 2013 June 2013 July 2013 August 2013 September 2013 October 2013 November 2013 December 2013 January 2014 February 2014 March 2014 April 2014 May 2014 June 2014 July 2014 August 2014 September 2014 October 2014 November 2014 December 2014 January 2015 February 2015 March 2015 April 2015 May 2015 June 2015 July 2015 August 2015 September 2015 October 2015 November 2015 December 2015 January 2016 February 2016 March 2016 April 2016 May 2016 June 2016 July 2016 August 2016 September 2016 October 2016 November 2016 December 2016 January 2017 February 2017 March 2017 April 2017 May 2017 June 2017 July 2017 August 2017 September 2017 October 2017 November 2017 December 2017 January 2018 February 2018 March 2018 April 2018 May 2018 June 2018 July 2018 August 2018 September 2018 October 2018 November 2018 December 2018 January 2019 February 2019 March 2019 April 2019 May 2019 June 2019 July 2019 August 2019 September 2019 October 2019 November 2019 December 2019 January 2020 February 2020 March 2020 April 2020 May 2020 June 2020 July 2020 August 2020 September 2020 October 2020 November 2020 December 2020 January 2021 February 2021 March 2021 April 2021 May 2021 June 2021 July 2021 August 2021 September 2021 October 2021 November 2021 December 2021 January 2022 February 2022 March 2022 April 2022 May 2022 June 2022 July 2022 August 2022 September 2022 October 2022 November 2022 December 2022 January 2023 February 2023 March 2023 April 2023 May 2023 June 2023 July 2023 August 2023 September 2023 October 2023 November 2023 December 2023 January 2024 February 2024 March 2024 April 2024 May 2024 June 2024 July 2024
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22
23
24
25
26
27
28
29
30
31
News Every Day |

California Supreme Court tax decision casts economic uncertainty over state

California Supreme Court tax decision casts economic uncertainty over state

Taxes have consequences. So do California initiatives. Proposition 13 from 1978, which limited property taxes, laid the foundation for the state’s ensuing rapid growth: personal computers in the 1980s, the internet in the 1990s and 2000s, social media in the 2010s and now artificial intelligence in the 2020s. 

Voters resoundingly insisted: We will not let you tax us to infinity. And you must get our permission for local tax increases. But that victory for keeping your money has eroded over the years. To cite one example, the top income tax rate jumped from 9.3% two decades ago to 2024’s 14.4 percent, chasing more wealthy job creators to other states. 

Then last week a hammer was taken to taxpayers’ heads by the California Supreme Court. It essentially declared open season on wealth creators. It removed from the Nov. 5 ballot the Taxpayer Protection Act. The TPA would have required proposed state taxes to receive two-thirds votes in both the Legislature and from an initiative before the people; and two-thirds votes of the people for local taxes. So much for democracy.

In addition to keeping taxes in this high-tax state from rising even higher, it would have provided stability for businesses and families. Their planning future budgets would have been more predictable. 

Instead, no one can know how high taxes will go. 

How will businesses react? Government functionaries, including the lawyers sitting on the court, seem to have little idea how businesses look at things. Here’s how: There’s always a bottom line. If expenses exceed income for too long, then the company goes broke.

That’s why companies need certainty in the tax code. Prop. 13 gave them that certainty on property taxes. The TPA would have done so for all state and local taxes. 

For example, if a business knows taxes will rise 5%, it can plan for that. It might be able to absorb the increase by passing on costs to consumers, or cutting pay and benefits to employees. Or it might cut unprofitable product lines.

But what if a business can’t know if taxes will rise 0%, 5%, 10%, 15%? Then it can’t plan.

Adam Smith wrote in 1776 in “The Wealth of Nations”: “The tax which each individual is bound to pay, ought to be certain and not arbitrary.” He even said “a very considerable degree of inequality…from the experience of all nations, is not near so great an evil as a very small degree of uncertainty.”

The Supreme Court’s rejection of the TPA means worse is to come. Future state and even local tax-limitation measures begin with the uncertainty they might be canceled by the courts before voters get a say. Yet there is no such limit to state and local governments loading ballots with new tax and bond measures.

It’s already bad and getting worse for businesses. Jonathan Lansner reported in these pages June 20: “California lost 222 big employers in 4 years, No. 3 drop in the US.”

The New York Post reported June 8: “Blaze Pizza joins other businesses leaving California for ‘growth’ elsewhere.”

I could list a dozen similar stories.

David Huerta, president of SEIU California and SEIU United Service Workers West, gloated after the court canceled the “Taxpayer Deception Act,” as he branded it. He called the TPA “a flagrant attempt by a few extremely wealthy real estate developers to undermine our entire democratic system and our voice as voters and devastate the vital services Californians rely on — all to avoid paying their fair share.”

How naïve. Businesses don’t pay state and local taxes when they leave California to avoid the uncertainty pushed by the union bosses and their kept legislators. And if the “wealthy real estate developers” got a tax break, they would pass some of it along as lower prices for housing. And healthy profits would encourage them to build more apartments and condos, alleviating the housing shortage. It’s called the free market.

Instead, the uncertainty increases for everybody. Even governments can’t plan because they don’t know how many tax-paying businesses will leave. How absurd.

John Seiler is on the SCNG Editorial Board and blogs at: johnseiler.substack.com

Происшествия

В Московской области сотрудники Росгвардии задержали подозреваемого в краже партии товаров.

England U20 overpower France to be crowned world champions

Faculty of International Journalism and Mass Communications Eurasian International University is conducting an additional intake of applicants!

Suspect arrested for ‘threatening to kill Trump and his VP pick JD Vance’ in Florida days after assassination attempt

Actors Who Died With Unfinished Roles

Ria.city






Read also

Strictly’s Giovanni Pernice brands Amanda Abbington a ‘mad woman’ in shock moment on stage

Project 2025 would be truly disastrous for the environment

Joey Barton charged after ‘comparing Eni Aluko to Fred & Rose West’ – as he slams ‘Banana Republic’ legal system

News, articles, comments, with a minute-by-minute update, now on Today24.pro

News Every Day

Faculty of International Journalism and Mass Communications Eurasian International University is conducting an additional intake of applicants!

Today24.pro — latest news 24/7. You can add your news instantly now — here


News Every Day

England U20 overpower France to be crowned world champions



Sports today


Новости тенниса
ATP

Рейтинг ATP. Рууд обошел Рублева, Берреттини вернулся в топ-50, Надаль поднялся на 100 строчек



Спорт в России и мире
Москва

Спортивные игры в СЛД "Москва-Сортировочная" филиала "Московский"



All sports news today





Sports in Russia today

Москва

Министр спорта Забайкалья принял участие во Всероссийском семинаре-совещании по вопросу перспектив развития спортивной отрасли в Москве


Новости России

Game News

Today's Wordle answer for Saturday, July 20


Russian.city


Москва

Филиал № 4 ОСФР по Москве и Московской области информирует: С начала 2024 года 140 тысяч женщин и новорожденных Московского региона получили услуги по родовым сертификатам


Губернаторы России
ЛокоТех

30 миллионов тормозных колодок выпустило Новосибирское ЛП Желдорреммаш за свою 80-летнюю историю


Неделя в Москве: театральный фестиваль, День Военно-морского флота и ловец снов

ЦБ придумал, как рассчитывать доллар и евро после санкций против "Мосбиржи"

Умер актер и режиссер Владимир Королев

Баранины наелись все! В Джидинском районе прошел гастрофестиваль


"С чем кушают счастье". О "Матросской тишине" Галича в приморской Горьковке

Shaman связал выход Байдена из гонки со своим концертом перед посольством США

Джазовый оркестр Игоря Бутмана выступил в Твери в рамках юбилейного гастрольного тура

Тимати, МОТ, «Руки Вверх!» и 205 000 гостей: в России прошел VK Fest. Как это было?


Паес и Амритрадж введены в Зал теннисной славы в Ньюпорте

Рафаэль Надаль проиграл в первом финале тура ATP в преддверии своей последней Олимпиады

Рафаэль Надаль вышел в финал турнира в Бостаде

Шнайдер прошла в финал турнира WTA в Будапеште



Бизнесмен вакцинировался от суда // Дело об особо крупной растрате рассмотрят в заочном режиме

Спортивные игры в СЛД "Москва-Сортировочная" филиала "Московский"

Филиал № 4 ОСФР по Москве и Московской области информирует: С начала 2024 года 140 тысяч женщин и новорожденных Московского региона получили услуги по родовым сертификатам

Отрытый конкурс красоты и таланта «Одна на миллион»


D&D's new 2024 Player's Handbook will have 10 species to choose from including goliaths, and drow will be closer to their Baldur's Gate 3 version

Запашный пришел поддержать Исмаилова перед боем с Минеевым

Собянин рассказал, какие современные технологии используются при строительстве метро

Shaman связал выход Байдена из гонки со своим концертом перед посольством США


В Москве наблюдается пик активности крылатых муравьев

В Госдуме предложили запретить хоррор-квесты после гибели двух девушек

Росгвардия раскрыла подробности нападения на девушку возле ТЦ в районе Коньково

Владимир Ефимов: На строящейся станции «Достоевская» появится первый в столичном метро пешеходный переход с траволаторами



Путин в России и мире






Персональные новости Russian.city
Анастасия Волочкова

«Не способна»: Джигурда высказался о творческом потенциале Волочковой



News Every Day

Exclusive - Sayantani Ghosh expresses happiness as sets of her show Dahej Daasi shifted close to her home; says 'I've been manifesting this for quite some time now'




Friends of Today24

Музыкальные новости

Персональные новости