Howard Jarvis Taxpayers Association - California Commentary

Independent Legal Analysis of Prop. 99 Exposes Fatal Flaws

Fri, 09 May 2008 06:05:42 -0700

By Jon Coupal

Week of May 5, 2008

Claimed Homeowner Protections Easily Circumvented

But the list of property rights experts who reject this claim is growing. This is because Prop. 99 includes significant loopholes that will allow public agencies to continue to forcibly seize owner occupied homes and give them to wealthy and politically connected developers, even if the measure wins voter approval.

Claimed Homeowner Protections Easily Circumvented

For the past several months, local government interests, including the League of California Cities and the California State Association of Counties, have spent millions of dollars touting Prop. 99 as ironclad protection for Californians who fear having their homes seized by local governments to be turned over to private developers for strip-malls and other for-profit projects. But the list of property rights experts who reject this claim is growing. This is because Prop. 99 includes significant loopholes that will allow public agencies to continue to forcibly seize owner occupied homes and give them to wealthy and politically connected developers, even if the measure wins voter approval.

It's a Full Moon and the Governor's Transformation Is Complete

Fri, 09 May 2008 05:43:13 -0700

By Jon Coupal

Week of April 28, 2008

We are all familiar with those scary movies where the seemingly nice guy morphs into a threatening monster over a very short time. Excuse me if I now find myself thinking of Arnold Schwarzenegger in his real life role as California Governor.

With his announcing yesterday that he would oppose Proposition 98, which would protect property owners from eminent domain abuse and provide additional property rights protections, the governor's transformation is complete.

His change was so quick that some may have missed it. So let's look back to 2003, when citizen Schwarzenegger was running to replace an unpopular governor who was being recalled, largely because of his inability to manage the state budget that was billions of dollars in the red.

How Do We Respond to the Budget Crisis?

Fri, 02 May 2008 05:24:31 -0700

By Jon Coupal

Week of April 21, 2008

It has been said that when the California Legislature departs in September for the year, taxpayers can finally loosen the hold on their wallets and use that hand to wipe their brows, thanking their lucky stars they made it through another tax and spend romp in Sacramento. 2008, however, may prove to be the year taxpayers grab onto their wallets with both hands and never let go.

The state, at minimum, faces a $16 billion deficit. The solutions being offered are coming from two schools of thought. The first says that taxes must be increased to cover any shortfall regardless of the impact on taxpayers or the economy. The second says that the difference between revenue and spending should be resolved by cuts in spending which has increased 36% over the past four years.

Attorney General's Office in Need of Greater Transparency

Thu, 24 Apr 2008 22:20:25 -0700

By Jon Coupal

Week of April 14, 2008

This year's budget fiasco demonstrates once again that the interests of California taxpayers are rarely reflected in our government's spending decisions. While some lawmakers are touring the state reminding citizens that their children's education is at stake, Attorney General Jerry Brown is filing lawsuits against anyone he can accuse of emitting too much greenhouse gas -- including federal, county and city governments.

When Brown sued the County of San Bernardino last year, just one of a number of such lawsuits, taxpayers there were forced to fund both sides of the case. It is difficult to see how the people of California come out ahead when they are forced to sue themselves.

Prop. 13 Has Something for Every Homeowner

Thu, 24 Apr 2008 22:18:04 -0700

By Jon Coupal

Week of April 7, 2008

Most people are aware that Proposition 13 is a boon to property owners in a rising market. Before Proposition 13, when the prices of homes were going up, property owners cringed at the arrival of the annual tax bill after a house in the neighborhood sold for a record high price. This was because they knew their bill would reflect what the new neighbor was willing or able to pay. Now, because Proposition 13 limits annual assessment increases to two percent, property owners have the security of knowing what their taxes will be from year to year. This has been especially important in recent years that have seen annual double digit inflation in California property values

For those who recently bought homes using sensible, conventional mortgages -- and who intend to remain in their homes -- there may be some good news in the midst of the housing slump. Because of Proposition 13, these properties likely qualify for a property tax reduction.

Sacramento Does Not Deserve a Bailout

Thu, 10 Apr 2008 18:01:25 -0700

By Jon Coupal

Week of March 31, 2008

In recent weeks, Governor Schwarzenegger, legislative leaders and the Legislative Analyst's Office (LAO) have called for eliminating what they term "tax loopholes" to help close California's staggering $16 billion budget deficit.

But one person's loophole is another person's legitimate advancement of public policy. This is especially true with those tax credits or deductions that are both broad based -- benefiting large segments of society -- and which result in a significant societal benefit. Nothing illustrates this better than the deduction for home mortgage interest. This deduction is unquestionably essential for vast numbers of California homeowners who seek to keep their homes.

Ordinary Citizens Are Slaves to Their Public Masters

Fri, 04 Apr 2008 04:20:06 -0800

By Jon Coupal

Week of March 24, 2008

Had a raise in pay lately? For many Californians the answer is "no." Their major concern in these uncertain economic times is just hanging on to their jobs.

However, when it comes to pay increases, some of our citizens are faring much better than others. These are workers employed by the state of California.

According to the U.S. Census Bureau, California is tops in pay for public employees. And their situation is getting rosier and rosier.

Research by the Sacramento Bee reveals that pay for state employees is surging, especially for those in the top tier.

When it comes to pay increases, some of California's workers are faring much better than others, and those workers are employed by the state of California.

City Unions to L.A. Taxpayers: Peel Me A Grape

Fri, 28 Mar 2008 00:00:04 -0800

By Jon Coupal

Week of March 17, 2008

Los Angeles city government is in trouble. Projections are that it will face a budget deficit of at least $400 million in the coming fiscal year.

The financial bind in which the city finds itself is no accident. It is the result of a series of conscious decisions by elected officials and bureaucrats.

According to the U.S. Census Bureau, public employees in California are the highest paid in the nation. While state workers do well, among government employees, the city of Los Angeles is considered the "land of milk and honey" due to the high pay and lavish menu of benefits.

Just three months ago, the mayor and City Council, on a 12 to 0 vote, agreed to 25 percent pay raises for 22,000 members of six unions representing city employees. This will cost city taxpayers $255 million by 2012. Of course these raises are modest compared to those provided to members of public safety unions, Department of Water and Power workers and city department heads.

Los Angeles city government is in trouble. Projections are that it will face a budget deficit of at least $400 million in the coming fiscal year. But the financial bind in which the city finds itself is no accident. It is the result of a series of conscious decisions by elected officials and bureaucrats.

Court Rules: No Merit to Opposition Arguments Against Prop. 98

Thu, 20 Mar 2008 18:33:25 -0800

By Jon Coupal

Week of March 10, 2008

On Friday, supporters of private property rights including the Howard Jarvis Taxpayers Association, the California Farm Bureau Federation and a coalition of business and faith based groups were awarded a great victory in California's State Superior Court.

For the past few months Proposition 98, a statewide ballot measure that will bring an end to the abusive practice of forcible seizing private property from property owners who don't want to sell their homes and businesses to wealthy and political connected developers, has come under attack principally from those who benefit from California's abusive eminent domain practices -- the League of California Cities and its coalition of redevelopment interests.

The court simply didn't buy the Doomsday scenario dreamed up by the California League of Cities and its anti private property rights coalition.

Why Can't Governments Treat Us Like Customers?

Thu, 13 Mar 2008 19:40:16 -0800

By Jon Coupal

Week of March 3, 2008

There is a general understanding in the private sector that treating customers well is good for business. Those businesses facing stiff competition seem to provide the best service, while those with a more secure market share are a little less motivated.

A good friend of mine related a recent experience with his bank that illustrates the point. He chooses to do all of his banking electronically with a well known national financial institution whose name I will not mention. Let's just say it is a bank in America. On those few occasions when he actually visited a brick-and-mortar bank, the service he received -- or didn't receive -- seemed to be designed to discourage his return. So when recent business compelled him to actually visit a local bank branch, he entered the building with trepidation, still haunted by the memory of his last visit that included a long line and a surly teller.

No doubt, most of us who have stood in a long line at an unresponsive institution like the Post Office have had such thoughts, before succumbing to the realization that when dealing with a total monopoly, you either accept the service you get or you get no service.

Phony Homeowners Group Fronts Phony Ballot Measure

Thu, 06 Mar 2008 09:00:03 -0800

By Jon Coupal

Week of February 25, 2008

The story is told that to fool Catherine II, Russian minister Grigori Potemkin constructed hollow facades of villages along the desolate banks of the Dnieper River. When the monarch and her entourage sailed by, they were impressed with the prosperity in her new territories.

Backers of a phony property rights measure, Proposition 99 on the June ballot, have borrowed a page or two from Potemkin's book.

Last year, taxpayers, farmers and small business owners began qualifying a measure for the ballot -- Proposition 98 -- that would bar cities and counties from seizing private property from unwilling sellers so it can be turned over to favored developers for strip malls and other for profit projects.

The League of California Cities and their developer allies have constructed an initiative that has nothing of substance on the inside, and to further confuse the voters, they are featuring its support by the League of California Homeowners, Inc. While this attractive name may cause many voters to think this is a broad-based statewide homeowners organization, it is actually a corporation whose primary function is to act as a contractor referral service.

Lawmakers Don't Want to Take Responsibility for Tax Increases

Thu, 28 Feb 2008 22:26:26 -0800

By Jon Coupal

Week of February 18, 2008

What do the California Legislature and a corrupt Old West town have in common? Okay, okay, that was too easy.

Recently, I sat down and watched a vintage Hollywood western. Turned out, the seemingly upstanding town mayor was really a crook. While he smiled and tipped his hat to ladies and their babies on the street, behind the scenes he was the boss of a gang of thugs headquartered at the local saloon. Whenever the mayor passed the word of a gold shipment, the gang went out and robbed the stage. Through most of the movie the mayor kept the respect of the townspeople, while the whole time others were doing his dirty work.

State legislators have spent the state into a $14.5 billion deficit. Since public resistance to new taxes to make up the difference is growing, some representatives are looking for other ways to keep the gravy train running.

Redistricting Reform, Not Longer Terms, Is the Answer

Thu, 21 Feb 2008 22:47:57 -0800

By Jon Coupal

Week of February 11, 2008

When Proposition 93, which would have extended terms for sitting lawmakers, went down in flames, taxpayers breathed a collective sigh of relief.

Backers, including Assembly Speaker Fabian Nunez -- whose opulent lifestyle may have put the final nail in Proposition 93's coffin -- argued with a straight face that lawmakers needed up to an additional six years in office to learn their jobs. Even Gov. Schwarzenegger echoed these remarks, although he also admitted that much of his support for Proposition 93 was based on his friendship with current legislators -- destroying once and for all his self-proclaimed status as a government "outsider."

When Proposition 93, which would have extended terms for sitting lawmakers, went down in flames, taxpayers breathed a collective sigh of relief.

Hold On To Your Wallets

Thu, 14 Feb 2008 22:35:59 -0800

By Jon Coupal

Week of February 4, 2008

Sacramento admits to a $14.5 billion deficit over the next 18 months. Chances are close to a certainty that this is a conservative estimate. After all, when do politicians ever exaggerate bad news for which they are responsible?

The responses from Sacramento officials vary, but none are especially good news for taxpayers.

The governor says there should be no new taxes, that we should close the budget gap with spending cuts, but this did not stop him from pushing his now defunct government mandated health-care proposal that could have cost Californians billions of dollars.

The state legislative analyst recommends the state do away with the mortgage interest deduction for homeowners. Senate leader Don Perata and Assembly Speaker Fabian Nunez have promised to seriously consider this recommendation. Nunez, who declares the shortfall will not be made up through budget cuts, wants to see higher taxes including an upping of the car tax, which was Gray Davis' failed response when he faced his own budget demons just five years ago. Others want to see services taxed -- imagine going to a doctor or lawyer and finding a tax added to the bill. And there are, of course, the usual rumblings from the education lobby that Proposition 13 must be jettisoned.

The state legislative analyst recommends the state do away with the mortgage interest deduction for homeowners. Senate leader Don Perata and Assembly Speaker Fabian Nunez have promised to seriously consider this recommendation. And there are, of course, the usual rumblings from the education lobby that Proposition 13 must be jettisoned.

Illegal Cell Phone Taxes -- Can you hear us now?

Thu, 07 Feb 2008 19:15:32 -0800

By Tim Bittle and Jon Coupal

Week of January 28, 2008

A young man graduated law school, passed the bar, rented an office, ran an ad, and opened for business. For three days no one showed up. Finally the next morning he saw a man approaching his door. Wanting to impress his first potential client, the young lawyer picked up the phone. He motioned the man in while shouting, "Absolutely not! You tell those clowns in New York that I won't settle for less than a million. We're ready for trial, and I'll take this case to the Supreme Court if necessary. Fine. I expect an answer within 24 hours." The lawyer replaced the handset and turned to the man. "Sorry about that," he said, "What can I do for you?" The man replied, "I'm from AT&T. I came to hook up your phone."

Many city attorneys in California know that the past and present collection of their city's utility tax on cell phone bills is illegal, absent voter approval. But they, and the politicians they represent, are trying to bluff their way out of holding an election.