Randy

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Archives for the ‘California Legislature’ Category

Grasp this good news for California families

Friday, July 1, 2011, 6:03 am |

Too many pro-family Californians have become cynical that anything good can happen in Sacramento. I don’t blame you. With anti-family, socialist Democrats in charge, and foolish voters who didn’t understand the benefits of partisan primaries or the protection that a 2/3rds vote on the budget offered, many California conservatives have lost hope. But when reality proclaims good news, you’ve got to take notice and be glad.

Because no Republican state legislator voted for tax or fee hikes, Jerry Brown and the Democrats failed to achieve a 2/3rds vote to get what they were pushing hard for — a multi-year “extension” of the 2009 tax increases: sales tax hike, income tax hike, car tax hike, and a major reduction in the child tax credit. All combined, the average California family would have lost nearly $1,000 per year. The good news is none of this materialized thanks to friends of SaveCalifornia.com and many others who encouraged the Republicans to hold firm and say no to more taxes.

Starting July 1, here is how your California state taxes and fees will have changed. As you can see, it’s mostly good news and mostly victories for taxpaying families and individuals:

1. Sales tax down 1 full percentage point
2. Car tax (vehicle license fee) nearly cut in half
3. The 2009 income tax hike expired Dec. 31, 2010
4. The 2009 slashing of the dependent tax credit from $309 to $99 expired Dec. 31, 2010
(Remember, the Democrats were trying hard to extend all these taxes, but they failed.)
5. Car tax is going up $12 (but that’s a likely lawsuit under Prop. 26 to strike it down)
6. $150 fee for residents in CalFire zones (another likely lawsuit under Prop. 26)
7. Sales tax enforced for Amazon.com and other businesses that have affiliates, workers, offices, property in California (as a result, Amazon.com, Christianbook.com and others have ended their California affiliate programs; so, California online businesses have been harmed, but you can still make tax-free online purchases from most online sellers that are outside California)
 
We’ve done further analysis of ABx1_28, the so-called “Amazon tax,” passed by the Democrat legislators and signed by Democrat Governor Jerry Brown. And we must correct our initial view that it will subject all online purchases to sales tax. Actually, hardly any new online sales tax will come from the new online sales tax law. Why? Because it only applies to online sellers that have workers, affiliates, offices, or property in California.

And already, online companies are taking steps to avoid the new tax, which enables their customers avoid the new tax. And in the 48 hours after the “Amazon tax” was signed, Amazon.com, Overstock.com, Christianbook.com and other out-of-state online sellers have sent notices to more than 25,000 California small businesses notifying them that they can no longer be affiliates.

Therefore, when Californians purchase from an out-of-state online seller, you are not likely to be charged sales tax because those sellers have severed ties with their California affiliates, and thus no longer have a “physical presence” in the state. They will have successfully skirted the new law and consumers will be “safe.”

So what’s the effect of the new online sales tax law? More than 25,000 small businesses in California will be harmed or eliminated, the economy will be further harmed, and the state government will end up losing revenue, not gaining it. This is the stupidity of Jerry Brown and the Democrat legislators. But consumers won’t likely pay any more tax online than they’ve already been paying.
 
Also, if you are a California affiliate of an online seller and your sales prices add up to no more than $10,000 a year in sales, you are exempt from the new sales tax law.
 
As the Los Angeles Times reports:
 
That’s because the new requirement applies only to online sellers based out of state that have some connection to California, such as workers, warehouses or offices here.
 
California’s new law was drafted to circumvent a 1992 U.S. Supreme Court ruling that sellers can’t be forced to collect sales taxes unless they have a physical presence in the state.
 
The new statute would establish that presence in two ways: when sellers pay commissions to other Internet sites in California, known as affiliates, that refer buyers; and when sellers have a related company operating in the state.
 
Understand more:
 
ABx1_28 | Analysis of Russ Fox, E.A. | Los Angeles Times | PCMag.com | CNET.com

Through wisdom a house is built, and by understanding it is established;
and by knowledge the rooms shall be filled with all precious and pleasant riches.
Proverbs 24:3-4 (NASB)

Families won most of the war against more taxes and fees

Wednesday, June 29, 2011, 8:05 pm |

It’s a victory worth celebrating. In the last 15 years, I don’t remember a Republican not selling out to a bad budget. This time the stakes were higher — new taxes and fees or a vote to place them on the ballot. But because this was one of the few issues that require a two-thirds vote — and thus conservatives could win — SaveCalifornia.com and many pro-family Californians went to war several months ago with the goal to “hold the Republicans.” And with the help of people who care, we achieved our goal.

Because no Republican state legislators ended up voting for a so-called “tax bridge” or taxes on the ballot, there are no direct tax increases in the just-approved Democrat state budget. Be glad that the 2009 tax increases will expire. This Friday, July 1, your California sales tax will drop a full percentage point and your car tax (Vehicle License Fee) will be nearly cut in half. Combined with the Dec. 31, 2010 expiration of the two other 2009 tax hikes (0.25% state income tax hike and slashing $200 per child or adult from the state dependent tax credit), this package of four expired tax hikes could save you nearly $1,000 per year.

So be glad! These expiring tax hikes are tax cuts that will help families and the economy. Thank you to everyone who participated with SaveCalifornia.com to help lobby Republicans to not provide bad votes to achieve a 2/3rds supermajority to raise taxes. And tell your local retailers, because some don’t know and may charge you the old, higher sales tax (which the Democrat politicians won’t mind at all). Here’s what you should be paying on Friday.

The new state budget is a bad government doing bad to the economy

This so-called “austerity budget,” signifying drastic cuts to public services, was quickly passed by the Democrat politicians Tuesday night on a majority vote. They like it because passing a budget means state legislators start getting paid again. But we get bad government from the Democrats because they refused to cut the structural waste and are cutting services instead.

For example, 70 parks will be closed. This “public punishment” demonstrates the vise grip that the government unions and the resulting entrenched bureaucracy have on California state government. Instead of demanding efficiency and frugality and wisdom and an end to disgusting waste, fraud, inefficiency, duplication, and harmful social programs, the Democrat politicians have loyally refused to bite the hand that feeds them and gets them reelected each year. (Most of the campaign contributions to Democrat politicians are from wealthy government unions).

So instead, services will be cut. This is a spirit of stealing and taking away what you already paid for. Cutting legitimate services will hurt the economy too. Lesson: In order to slash the structural waste, you need conservative Republicans to be in control of both houses of the Legislature and the Governor’s office. They haven’t been in charge of all three “houses” for more than 40 years!

This pro-abortion budget also contains fee hikes (hidden taxes)

Containing nearly $100 million in abortion funding and funding for abortion-related procedures, the Democrats’ new budget imposes three kinds of fee (hidden tax) hikes: $150 per household fee in CalFire-served areas (which is already covered by property taxes); a $12 vehicle license fee (car tax) hike; and imposing for the first time ever a sales tax on all online purchases, the so-called “Amazon tax.” As a result of Jerry Brown already signing the “Amazon tax,” Amazon.com is cutting their 10,000+ California affiliates. So Brown and the Democrats have hurt or eliminated some 10,000 businesses already.

I hope there are lawsuits to strike down the unjust CalFire fee and vehicle license fee under Prop. 26, which passed last year. There might be and should be. Prop. 26 requires a 2/3rds vote on general fees, which is what they two fee hikes are. The Democrat politicians are trying to skirt Prop. 26 by turning as many general fees as they can into specific “user fees,” which are exempt from Prop. 26. They shouldn’t be allowed to get away with this thievery and deceptively violating the California Constitution.

Look at the issue of fire protection, which you are already paying for through your property taxes and state taxes. If the Democrats can impose a $150 per year surcharge if you live in a CalFire zone, what’s to stop them or local governments from deciding that every Californian’s city or county fire or police protection is a “user fee,” no longer regarded a general public service?

And what about the vehicle license fee hike? All the legislative history reveals the Democrats did this to soak up more revenues for the general budget. This is in no way a “user fee” exempt from Prop. 26.

As for requiring you to pay sales tax on all online purchases, that’s a tax hike. But Prop. 13 in 1978 put in the California Constitution a prohibition of tax hikes without a 2/3rds vote of the Legislature. The Howard Jarvis Taxpayers Association needs to sue. The good news is they’re considering doing that for two of these three hidden taxes.

Stay in the battle

So please, stay in the battle to fight for financial freedom and against anti-family socialism in California. We have two strong constitutional amendments, Prop. 13 and Prop. 26, on our side, as well as the two-thirds vote threshold for direct tax increases. When things get tough, may those who are faithful and courageous reveal their character and perseverance, for the love of God and the love of their children and grandchildren.

If you know how to spend less than you get, you have the philosopher’s stone.
Benjamin Franklin, American founding father, statesman, inventor, author (1706-1790)

My response to Jerry Brown’s budget veto: Game on again!

Thursday, June 16, 2011, 5:09 pm |

I’m glad that Governor Jerry Brown, who likes higher taxes and fees, has vetoed the Democrats’ budget bill because he either doesn’t like the way it was done or doesn’t like what it would do to his legacy.

While Democrat Controller John Chiang worries about his public image regarding whether to keep issuing legislators’ paychecks (there’s nothing in Prop. 25 that says the governor has to sign the budget bill for them to be paid), Brown’s veto means it’s “game on again” to stop higher taxes and fees extorted from California families.

On June 30, the abnormally-high sales tax and Vehicle License Fee (car tax) increases will expire. Brown doesn’t want taxes and fees to go down, but wants them extended for years. Brown said today, “We need four Republican votes and in the next several days I’m going to do everything I can — I’ll move heaven and earth — to get those votes.”

ALERT: If you know the true Power of heaven, fight against the tax-and-fee hikes of Jerry Brown and the Democrats. Right now, please again call and email Sacramento to demand “no more taxes or fees at the state or local levels!” Especially call the at-risk Republicans.

Here’s today’s SaveCalifornia.com news release responding on Brown’s veto:

FOR IMMEDIATE RELEASE
June 16, 2011

Response to Governor Brown’s Budget Veto
by SaveCalifornia.com President Randy Thomasson

Sacramento, California — In response to today’s veto by Governor Jerry Brown of the Democrats’ budget bill, Randy Thomasson, president of SaveCalifornia.com, a non-profit, non-partisan statewide organization that promotes moral virtues for the common good, released the following statement:

“Jerry Brown may like higher taxes and fees, but he’s doesn’t like them in an obvious sham budget or in a way that makes him look bad. Whether his veto is for the sake of image or principle doesn’t matter as much as the fact that California families have been saved, for the time being, from more taxes and fees that take away their hard-earned money for a wasteful, greedy government to devour. We call on principled Californians to rise up and urge their state legislators — especially Republican assemblymembers and senators who can stop the Democrats’ money grab — to resist any and all tax hikes or fee hikes at the state and local levels.”

SaveCalifornia.com has identified tens of billions in government waste, and for the last several months has been calling on concerned Californians to demand an end to tax and fee hikes.

— end —

Act now: Call and email Sacramento to demand
“no more taxes or fees at the state or local levels!”