California: Still A Leader
In one of the more dubious categories, that is.
Recall that some 35 years ago, California voters passed the now famous “Proposition 13,” which cut and limited the annual growth of property taxes.
As noted by the Tax Foundation, some Californians worried, at the time, that capping property taxes “at such a low level” would result in devastating cuts in government spending, and an increase in unemployment.
But not to worry – California remains a very high tax state. As the Tax Foundation points out, “It has the third worst business climate in the country, the highest top marginal income tax rate in the country at 13.3 percent, a corporate income tax of 8.84 percent, and the highest statewide sales tax in the country at 7.5 percent. But in 1978, California had the fourth highest overall tax burden, and today the state still has the fourth highest burden. Although one cannot say for certain that Proposition 13 caused the other taxes to increase, Proposition 13 at the very least failed to prevent high taxes and an expansive public sector.”
Nonetheless, here comes Governor Moonbeam with his recent signature on California legislation which will direct $1.6 million to the Secretary of State’s office which will now, ostensibly, be able to speed up the new business filing process. We hear that also, these funds will be used to eliminate the backlog of more than 100,000 filings that are languishing in the system.
These new resources are intended to grease the skids in California, to reduce waiting times (relative to new business filings) to between five and ten days by later this year. Presently, the process has been known to take months. We shall see.
But while California lavishes more dough on the state Revenooers, the Feds are making noises to the effect that the recent IRS revelations (regarding shenanigans which have come to the attention of Congress) may jeopardize near term funding – not a good thing (if you’re Obama or any number of his socialist bureaucrat buddies) as the IRS girds for a major role in the implementation of the “Affordable Care” act, conventionally known as “Obamacare.”
“I think it’s safe to say they’re not going to get the kind of increase they’re asking for,” quoth Rep. Ander Crenshaw (R-Fl), Chairman of the House appropriations subcommittee responsible for funding IRS escapades.
“The IRS needs to repair the plane while it’s in flight right now,” says Paul Cherecwich, Chairman of the IRS Oversight Board, an independent board within the agency. “Should the current budget environment continue, the IRS will have to continue to have to do more with less while rebuilding taxpayer trust. It has no choice, and it won’t be easy.”
Obama’s proposed budget for next year for the Revenooers is $12.9 billion – a 14 percent increase over current spending. Something like $440 million, says Fox News, would go toward the implementation of the health care law, to include hiring around 2,000 more employees, per the Government Accountability Office.
How many Revenooers does a body politic need?
CONSULT YOUR TAX ADVISOR – This article contains general information regarding various tax matters. You should consult your CPA regarding the implications to your own particular situation.
Jeff Quinn, the author of this article, is a shareholder in Ashley Quinn, CPAs and Consultants, Ltd., with offices in Incline Village and Reno. He can be reached at 831-7288, welcomes comments at firstname.lastname@example.org, and invites readers to consider his other commentary at http://blog.nolo.com/taxes.