The California Revenue & Budget Problem

At CCRC, we believe we are all in this together. We have all been affected by California’s budget crisis whether by our children’s elementary school which can no longer take field trips or libraries closing down or huge potholes endangering the roads or public offices limiting their hours.

California has had a revenue and budget problem for years. But this year, the deficit is almost at 16 billion dollars!

The safety net is feeling less and less safe and yet there are still those who claim we need to make more cuts. This cutting and cutting is what took California from being the Golden State to state of crisis it’s in now. And now is the moment to address the root causes of the revenue and budget crisis so that we can again offer a public education that is amongst the best in the nation and set trends for innovation and progress.

Root Causes of California budget crisis

California used to be the only state in the United States that had two super-majority rules. We required a 2/3 vote in the legislature to pass a budget and a 2/3 vote to raise revenues both at the state and local level. These two rules together wreaked havoc in California for too long. Fortunately, in 2010, Californians passed Proposition 25, which relieved the legislature a bit by making it possible to pass a budget with a majority of our elected leaders.

This 2/3 rule to raise revenue was written into Proposition 13, passed in 1978, which also created vast property tax loopholes for California’s largest corporate property owners. This dramatically reduced California’s revenue. Corporations who have not sold or built up their property since 1978 are essentially paying taxes on their property as if we are still in the year 1975. This HUGE tax loophole is costing the state billions of dollars a year.

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Tell Congress Why the Bush Tax Cuts SHOULD Expire

What’s at Stake

The economy is in shambles. People everywhere are struggling to make ends meet. So naturally, Republicans are worried about the richest Americans.

They’re looking to make Bush’s tax cuts for the rich—which expire at the end of the year—permanent. The worst part is that some right-wing Democrats have already come out and agreed with the Republicans’ reckless approach, and the White House has signaled that they’re open to compromising on this issue.

This has to be the worst idea since—well, ever. And to show just how bad an idea it is, we’ve decided to gather 1 million reasons why the millionaire tax bailout is a bad idea.

We’ll use the ideas you submit in a multimedia campaign around the country, and stage a high-profile event to deliver them directly to Congress. Can you contribute a reason—or five or 10—right now? They can be as simple and short—or creative—as you want. Click here to submit your reasons.

The Bush tax cuts for the super rich aren’t just bad policy, they are bad politics too. Voters consistently reject extending those giveaways in poll and after poll.

And economists agree that the top 2%—the richest folks who the Republicans are going to bat for—don’t spend this money, meaning this tax giveaway doesn’t have any stimulative effect on the economy. But struggling families will spend it. They need relief now, and that will help our economy.

With Republicans committed to bailing out their rich, corporate friends to the tune of $700 billion at the expense of middle class families, it is essential that Democrats stand up.

Can you submit a few of your own reasons for why the millionaire bailout is a bad idea right away?

http://pol.moveon.org/millionairebailout/

Thanks for all you do.

–Nita, Peter, Michael, Daniel, and the rest of the team

Action Sponsored by MoveOn