On Taxes and Budget Deficits
Alameda County Greens

One of the most important background aspects of this election is the widespread presence of budget deficits. They exist at every level of government in California—state, county and municipal; and at every level of education—from K-12 through U.C.

There are many reasons for this—international and national. But let’s focus on California budget priorities and taxes as a starting point. California is not poor. Its economy is larger than the economies of most countries. But the income tax burden has been gradually shifted from corporations and the rich to workers. Corporate income taxes have dropped 40 percent over the last 20+ years. As of 2006, 52 percent of profitable California corporations did not pay any state income taxes.

There are many ways to increase revenues at the state level. This is necessary because the state plays a large role in financing local governments and education, and local governments have more limited taxing authority. Increasing the tax rate on taxpayers in the highest bracket, and the elimination of tax loopholes, are obvious first steps. The most comprehensive and controversial proposals involve changing Proposition 13. For example, California could return to the “split tax roll” system, which would again allow profit-making property to be taxed at a higher rate than owner-occupied homes. Another proposal that involves Prop. 13 would allow reassessment of corporate property when corporations are sold.

One of the factors we need to look at when evaluating candidates is how they respond to questions about budget priorities and the revenue shortfalls that are so widespread. If they are incumbents, have they been willing to use their offices to reorient spending to meet human needs, instead of handouts to business? Have they attempted to introduce proposals that point to progressive taxation? Are they willing to investigate and tell the truth about the tax-shifts that have occurred? For non-incumbents, are they willing to use their campaigns in a similar fashion? The Green Party of Humboldt County thinks that these issues are crucial. We hope that you will take these questions into account when you vote.