For those of you that don’t know, I was the Republican candidate for California State Controller. During my year-long campaign, I tried to warn people of what California’s future would look like if we didn’t change course. I told every voter, candidate, even the California Republican Party that we need to expose this or our state would be doomed.
I put in on my candidate statement, on my website, and in my speeches. Unfortunately, no one listened.
So the first thing I warned voters about is that the Democrats will move to impose a sales tax on service and labor and if they fully implemented it, it would bring in at least $120 billion a year. A tax that will crush the poor and working class and further drive businesses out of California. I said they wouldn’t be talking about it before the election, but right afterward they would be.
November 6th we lost the election, November 8th in Fox & Hounds Daily, “Newsom is already listening to Senator Bob Hertzberg, re-elected Tuesday, to consider an overhaul of the entire tax system that would include some form of service taxes. If Newsom wants to spend political capital on such an ambitious effort it would likely come soon.”
The next thing I warned was destroying the forty-year-old Prop 13 property tax protection that limits property tax increases to 2% a year.
I told anyone that would listen that this is what their strategy will be.
First, they will go after commercial and industrial properties and leave owner-occupied homes alone. They will say these corporations and trusts keep their properties forever and use loopholes and therefore they don’t pay their fair share. It’s not right to give millionaires and billionaires a tax break when we need money for schools, affordable housing, universal healthcare, etc.
They, of course, will hide the fact that rentals like apartments fall under this category and rent will become even more expensive but who cares, when you’re the government and all you want is more money. The truth is inconvenient when you are trying to deceive people and con them out of their money.
Now why do it as a split you may ask? Well because renters will be fooled into thinking they’re protected which they won’t. Homeowners will think they are safe. So why not do this and get government program XYZ, I’m not paying for it anyways.
Then after they do split roll, they will go to the majority (renters) and say the rich minority (homeowners) get these tax breaks while you pay high sky rents. Why should these privileged few get a tax break and you don’t? Let’s get rid of Prop 13 for homes so we can use the money for programs like more affordable housing.
Now that they have completely succeeded in removing property tax increase limits, they will be free to raise your property taxes as they see fit.
Think I’m crazy, think again. In the same Fox & Hounds Daily article it states:
Is Newsom planning on confronting Proposition 13 when the split roll appears on the 2020 ballot—a position his predecessor, Jerry Brown, avoided?… Or the incoming governor could rely on Hertzberg’s connection with Nicolas Berggreun’s Think Long Committee to do the heavy lifting on formulating a tax reform plan….or cut an overall tax package deal in the legislature that could include a move on commercial property taxes.
So once this is all done, they will still need more money because they can’t stop stealing and spending your money and they will eventually put a tax on assets, but don’t worry that will be one of the last things to come. You might not have any assets left to be taxed by then.
So to leave you with one last parting note. All these taxes have nothing to do with Gavin Newsom’s social welfare programs. They are a desperate race to fund the unfunded pensions in California.
They are trying to hide the fact how bad the situation is by using fake actuarial calculations like the discount rate (rate of return on investments). Government politicians say migrating the rate slowly from 7.5% to 7.0% is sufficient, contrary to our outside consultants’ advice (6.2%) and Stanford (5.5% – $900 Billion Unfunded Pension Liability – not to mention unfunded medical. bonds, and other debts).
So all these wonderful supposed free social programs Gavin Newsom and Democrats promise you will never happen. Especially since they are anticipating a recession around 2020 and we will have a significant drop in our state budget and the pension crisis will cause many local governments to go bankrupt.
So just remember, don’t say I didn’t warn you.
But rest assured California, I will continue to fight back and I will bring new bold reform ballot propositions in 2020. Our coalition with the Reform California organizations and the hundreds of thousands of volunteers are ready to be the resistance to Gavin Newsom and his corrupt spend and tax allies.