☆ Rubin: November’s tax-heavy ballot could lead to a “revolt”
Is there a “silent majority” that is tired of the tax hikes? California financial expert Tom Rubin joins an Opportunity Now exclusive series exploring where we’re headed this November. He warns local governments it might soon be much harder to keep raising taxes.
I am getting more and more of a feeling that there may be a major taxpayer revolt against big government – and higher taxes. More and more taxpayers appear to be in a “silent majority” that is upset about government’s constant failure to reduce costs, increasing employee pay and benefits, taking on more oversight of business and personal life, and asking for more taxes to pay for what the voters and taxpayers don’t want governments to do.
This could be the “perfect storm” election. Almost every unit of government, at every level, is facing major budget problems because of constant special interest pressure to not cut – and actually increase – expenditures, which leave tax increases as the only way to go. But, the compromise that put Proposition 43 on the ballot means that, if it passes and goes into effect – which has at least a reasonable chance of happening – then all future local special tax increases will require a two-thirds majority, leaving the November election as the last chance to get a local special tax increase passed by a 50%+1 majority.
Many governments see no alternative but to go for all the taxes they think they can get at this last chance, which means an incredible number of ballot tax measures in November – and, the more tax increases there are, the greater the chance of an “all-of-you-can-go-to-Hell-no-on-EVERYTHING” response.
I may be wrong on that, but, we’ll see.
If Prop. 43 does pass, there will undoubtedly be litigation, but, at a minimum, one whole lot of governments will have to take immediate emergency actions – which is not something government does well, particularly after years “protecting” these expenditures, such as expensive labor agreements and contracts with favored contractors.
Follow Opportunity Now on Twitter @svopportunity
We prize letters from our thoughtful readers. Typed on a Smith Corona. Written in longhand on fine stationery. Scribbled on a napkin. Hey, even composed on email. Feel free to send your comments to us at opportunitynowsv@gmail.com or (snail mail) 1590 Calaveras Ave., SJ, CA 95126. Remember to be thoughtful and polite. We will post letters on an irregular basis on the main Opp Now site.