THIS IS SERIOUS SB 468: DEMOCRAT PROPOSES $65 BILLION TAX INCREASE—NOT A TYPO

THIS IS SERIOUS SB 468: DEMOCRAT PROPOSES $65 BILLION TAX INCREASE—NOT A TYPO

There are two ways to raise taxes.   You can raise the tax on goods and services, gas, property, soda, batteries, health care and anything that moves or doesn’t move.  Or you can end tax incentives, tax credits.  SB 468 by the aptly nick named Hannah “Taxin” Jackson is proof Democrats love taxes and making people poor.  Most of the tax credits were created for the purposes of creating jobs.  So, the goal of ending the tax credits is to end the jobs.  Democrats love poverty and making people dependent on government to survive.  In the end, if passed, this will be another reason for the middle class to continue fleeing this American Socialist State.

 

“Jackson says,  “California has nearly 80 tax expenditures. These are provisions in the tax code – including tax credits, tax deductions, sales tax exemptions and income exclusions – that reduce the amount of tax collected in exchange for an intended public policy objective.”

 

The goal is more tax “revenue” into state coffers, even if that means repealing existing tax credits.

The California Teachers Association, in support of SB 468, said, “California has spent over $66.6 billion on the top ten most costly tax credits and exemptions in the past decade. Every dollar of a tax credit to the General Fund that does not generate its cost in new revenue takes approximately 40 cents out of California’s classrooms, representing the share of revenues that would have gone to Proposition 98 from the General Fund.”

 

California has a $21 billion surplus and the Democrats are still looking at ways to take more from families and businesses.  Add to this the $12 billion a year, minimum, services tax on attorneys, CPA’s, consultants, realtors and more.  You will see if the Jackson bill and the Hertzberg services tax bill pass, along with the Split Roll passing on the November, 2020 ballot, an immediate collapse of the economy of California before Christmas of 2020.

 

Bill to Repeal California Tax Credits = Backdoor Tax Increase

$65.2 billion per year in California income tax credits, deductions, exemptions, and exclusions targeted

By Katy Grimes, California Globe

 

The $65.2 billion per year in various California income tax credits, deductions, exemptions, and exclusions, is now being targeted under the guise of “transparency and accountability.”

 

Senate Bill 468 by Sen. Hannah Beth Jackson (D-Santa Barbara), would not only seek to repeal these tax credits, it would create a new bureaucracy performing functions currently performed by a number of existing agencies.

 

Jackson says,  “California has nearly 80 tax expenditures. These are provisions in the tax code – including tax credits, tax deductions, sales tax exemptions and income exclusions – that reduce the amount of tax collected in exchange for an intended public policy objective.”

 

The goal is more tax “revenue” into state coffers, even if that means repealing existing tax credits.

The California Teachers Association, in support of SB 468, said, “California has spent over $66.6 billion on the top ten most costly tax credits and exemptions in the past decade. Every dollar of a tax credit to the General Fund that does not generate its cost in new revenue takes approximately 40 cents out of California’s classrooms, representing the share of revenues that would have gone to Proposition 98 from the General Fund.”

 

The stated intent of the bill is to promote government accountability, however the bill would create another, costly bureaucracy, through the creation of the California Tax Expenditure Review Board, in an effort to repeal tax credits. As the California Taxpayers Association noted in their opposition, “Both the LAO and the State Auditor can initiate studies under their own authority or at the specific direction of the Legislature.” These agencies often independently analyze and make recommendations to the Legislature – without legislation directing them to do so.

 

Sen. John Moorlach (R-Costa Mesa) said he was having “buyer’s remorse” on the bill. Moorlach said going after 1031 exchanges to defer paying capital gains taxes on an investment property when it is sold, and ESOP employee benefit plans, should be reconsidered. “I hope another effort comes back instead of this,” Moorlach said.

 

“More recently, the State Auditor conducted an assessment of several of the state’s primary tax expenditures and recommended improvements to some, while noting that others appear to be achieving their objects,” Cal Tax said. “To provide a more accurate and comprehensive assessment of state revenue impacts, we suggest that any tax expenditure study incorporate ‘multipliers’ and their effects on the economy. Additionally, we believe it is critical to examine California’s policies in the context of competitiveness with other areas of the country.”

 

SB 468 passed the Senate on party lines.

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