As California Circles The Drain…
…state and local authorities in California want to put in a bigger drain pipe. Did you listen to the hosts interview with Pete Peterson of Pepperdine this past Wednesday? They did not paint a pretty picture and they are just scratching the surface.
Super Tuesday will be here before we know it, and California will vote. Early voting and absentee balloting have begun. Votes are being cast right now. And as always much mischief is afoot – particularly in a low turnout, especially for Republicans, election like this primary. And so we have a tale of two propositions absolutely guaranteed, if passed, to drive the state to ruin that much faster.
The first is currently titled as follows:
1870. (19-0008A1)
INCREASES FUNDING FOR PUBLIC SCHOOLS, COMMUNITY COLLEGES, AND LOCAL GOVERNMENT SERVICES BY CHANGING TAX ASSESSMENT OF COMMERCIAL AND INDUSTRIAL PROPERTY. INITIATIVE CONSTITUTIONAL AMENDMENT.
This, frankly, is a straightforward repeal of California’s famed Prop. 13 for some “limited” situations. What it really is is a recipe to drive business away from the state at an even faster rate than they are currently migrating. It will cost jobs, and raise prices on virtually everything.
The other measure is in LA County only and is technically not a property tax. They are calling it a “parcel tax” since it is based on square footage of the property, not its value. Shakespeare said it best when he said something about, “a rose by any other name….”
The sheer hubris evident in these offerings is noteworthy. There are three things I find remarkable about all this.
It is clear that those offering these measures just don’t listen. Few measures have passed in California as overwhelmingly as Prop 13. It garnered 65% of the vote. Yes, it was 40 years ago, but that is still a pretty clear message. And when you consider the conditions that lead to such an overwhelming vote (property values increasing at a rate massively faster than inflation) have either not changed, or in some areas worsened, what makes these people think the result is going to be any different? But its clear they are not interested in the actual conditions. They see those massive property value increases and wonder where their cut is. God forbid anybody might make a buck in California without the government getting its cut. Isn’t that how the Mafia operates?
Which is the second thing I find remarkable about all this. Those offering these measures clearly feel entitled to a share of all the money made in the state. It is doggone near parasitic. And I wish I could figure out what they are doing with all the cash they have coming their way now. This is the highest tax state in the nation, why-oh-why do we need more money for fire and education? Shouldn’t they come first in our spending decisions?
But the third thing is the thing that really gets my goat in all this – that is the deception involved. It is two levels of deception. The first lies in the how the propositions are presented. They are presented in this particular primary election which will, because of the lack of a presidential question for Republicans, have a very low conservative turnout. And given the nature of the Democratic primary, a fairly high liberal turnout. That’s smart politics actually, at least if you want the propositions passed, but it also is deceptive. Back to this in a minute.
Note how both measures are presented. The statewide measure is presented firstly as a means to fund education. The LA County measure is presented first as a means to fund the Fire Department, especially pointed given the brush fires we endured last fall. But see, here’s the thing, money is fungible. In California government circles, I am not sure that term is adequate, funds just get out-and-out diverted. So what we are really dealing with is a bait-and-switch. Raising taxes, but not getting what you voted to raise taxes for.
Now back to the turnout question and the second deception. The backers of these measures have undoubtedly noted the decreases in property ownership in California. It takes a lot of money to buy property here – a whole lot. I am currently shopping real estate in my intended retirement targets. I can get roughly twice as much home for half the money. That should help you understand just how expensive real estate is here. If you own real estate in California, you are almost by definition rich – but you’re likely going to be cash poor. The people who are going to vote for these measures are going to assume that property owners are rich in the sense that they have money lying around, but the exact opposite is more often the case. And all voting for these measures will do is exacerbate that problem. So, those that think they are voting a better life for themselves in these measures will actually be putting property ownership farther out of their reach. That is deeply deceptive, almost evil.
Just when you think California has hit bottom they dig a whole new level. When I came here in the 1980’s this was the promised land. Rarely has more promise been squandered more rapidly.

