Want to know why California is absolutely idiotic when it comes to taxes? How about this one:
A drop in property tax revenue wallops the state, because it is obligated to make up any significant loss to the schools. The Legislative Analyst’s Office projects the state will have to pony up almost $1.5 billion to K-14 schools over the next three years to compensate for declining property taxes. Gov. Arnold Schwarzenegger has already said the state will have to make up $430 million this year for school funding because property taxes have lagged projections.
“That $430 million in essence will get built into every year going forward,” Ross said. “More school costs will shift onto the state.”
Emphasis added by me. So if houses start losing value, the schools don’t even have to worry. The state MUST make up any funding difference. Now this might be just a question from somebody looking at things from a sane level, but if the teachers and the administrators know that they are guaranteed more money – every single fracking year – do they really have any incentive to review their operations and look for how things might be made more efficient and cost-effective?
And this tax burden goes to the state and then next year its that – plus the shortfall in property taxes next year, and the next year and the next year. Does anybody think this is a system that is setup to fail unless you have continually increasing home values? I certainly do. But even then Prop 13 doesn’t allow the government theives to re-value your house until you sell it. This was the practice that was forcing retirees and people who didn’t get 15% annual wage increases out of their homes. And, of course, the one thing that the government employees want is to get rid of Prop 13:
“Maybe we need to revisit not just Prop. 13 but our entire funding formula for local government,” he said. “As bad as it gets, that’s when it forces people to think and to move outside their comfort level and outside the box to address the crisis. Maybe we need to revisit these antiquated ways in which we deal with revenue streams to local government. At some point, it’s going to take an initiative, and it would have to be one from the people. It took an initiative for Prop. 13, and it’s going to take one again.”
California Republican John Campbell yesterday introduced in the House his “Put Your Money Where Your Mouth Is Act,” which would amend the tax code to allow individuals to make voluntary donations to the federal government above their normal tax liability. The bill would place a new line on IRS tax forms to make this easy.
Mr. Campbell says he has heard the “cries” of those wealthy Americans – Mrs. Clinton, Warren Buffett, Barbra Streisand – who reject the lower tax rates passed in 2001 and 2003 and complain that they and their fellow rich don’t pay enough. “It’s a great injustice that citizens wishing to fulfill their dream of paying more taxes cannot simply check a box on their 1040 form to make a donation,” he says. His bill would give liberals a chance to salve their consciences without having to raise taxes on millions of Americans who already feel overtaxed as it is.
My simple predictions:
1. The Democrats will never let this bill see any light of day. it will be holed up in some House subcommittee undergoing “review” till this Congress is history. It would be a most dangerous thing for Democrats to actually give people the freedom to make their own choices – especially about how much of their hard earned money goes to the government. Allowing people to choose this essential hold over their lives would absolutely destroy the whole premise of what the Democrats stand for. They are about controlling people – not giving them choice.
2. Why is Warren Buffett giving most of his money to Bill Gates’s charity instead of just handing it over to the government? He wants rich people to pay more in taxes – why is he not giving the earnings of his lifetime to some twits who would spend in all in less than a month?
3. As a thought experiment – just how much money would actually come in if this box were on the 1040 form making it extremely simple to allow good progressives to put their money where their considerable mouths are? The Treasury got about $2.9 million in contributions last year. The US governnment is scheduled to spend $3 trillion dollars in FY2008. My calculations show that as spending $5,707,762 a minute. Yes, every minute of every day of every week of every month of the whole year. So that lousy three million in contributions would only fund the government for 30 seconds odd. Do you think they would get enough in “contributions” to fund 2 minutes? I certainly don’t think they would. Maybe, just maybe they might get enough for 1 minute.
4. And don’t forget – you are not paying enough in taxes. The Obamamessiah says so. The Hildebeast says so. The Great and Wonderous Algore certainly says so. But would they give half their estates directly to the governement?