Here goes California, right off a cliff (or not).

With California mired in what is arguably the worst economic downturn in the history of the state’s existence, here come the Democrats, wanting…wait for it…wait for it…you guessed it, higher taxes. It is apparently lost on the Democrats in the State Legislature that California is already leading most lists of the ‘taxed out of your ass’ variety.

Where, oh where to start? Highest top individual income tax rate in the nation? California, at 9.3% (feeling wealthy? because California puts you in this very top tax bracket at an unbelievably paltry $44,000 annual income), and that doesn’t even take into account the 10.3% rate imposed on millionaires as part of Proposition 63, the mental health programs boondoggle. Highest gas tax imposed on consumers? California, which imposes a healthy 7.25% tax, and then permits local municipalities to tack on another 1.5%. Highest corporate income tax rate in the West? California, at 8.84% (which is also good for 6th highest in the nation). The list of categories in which California leads – or nearly leads – in the tax burden placed on its citizens and businesses could go on and on.

On Monday, California State Republicans put forth a proposal that would bridge the ever-widening deficit chasm with just over $22 billion worth of adjustments: $6.5 billion in revenue reapportionment (subject to a vote by California voters), and $15.6 billion in spending cuts. It was coldly received by the Democrats in Sacramento, as well as the usual gaggle of union and education hacks:

“[We need] more funds, not…cuts,” said State Sen. Gil Cedillo (D-LA). And Courtney Pugh, who sits on the SEIU state council, called the plan “reckless.” Which raises an interesting question, at least if you live in California: when was the last time you opened your wallet and told yourself, “you know, I’m just not paying enough taxes these days.”

For Californians, the answer is, unfortunately, “not that long ago.” California voters are notoriously stupid when it comes to balloted spending initiatives: the state is less than two months out from having voted in favor of massive new bonds for high-speed rail (Prop 1A) and, of course, “the children” (Prop 3). And if you give more than a cursory glance at the Republicans’ budget plan, you’ll discover that the two largest chunks of the proposal refer to two more money grab Propositions: 10 & 63.

These two propositions were put on the ballot (in 1998 and 2004, respectively) – and passed by Californians – to raise money for preschool (once again, “the children”) and mental health programs. But because those who wrote the propositions can’t figure out what to spend their windfalls on, they’ve resorted to spending money on sending kids to the zoo. Or just letting the money sit there. That’s right, there’s $2.1 billion available from Prop 10, and a staggering $3.9 billion available from Prop 63. Just sitting there.

California State Republicans want to put the issue to state voters: can this money be redirected to the general fund? Because the Democrats in California have a stranglehold on both the Senate and Assembly, it is unlikely the Republicans’ plan will ever see the light of day. Which doesn’t bother the Democrats, because they don’t think you’re paying enough. Karen Bass (D-LA), the Assembly Speaker, is adamant in her (and fellow Democrats’) desire for new taxes. Eleven billion dollars worth. And if the Republicans don’t get on board with her proposals? Her solution is simple: “lock them in” if she has to, literally holding them hostage in chambers at the Capital, until they agree to unleash a fiscal Armageddon on California taxpayers.

There is one glimmer of light amidst the budget mess in California: because a two-thirds majority vote is needed to pass the State’s budget, the Democrats need to turn Republicans in both the Senate and Assembly. With the California GOP saying they will remain firm in their anti-tax hike stance, there is a chance California may dodge the worst of any tax hikes. We can only hope.

Sources for this article:

http://www.taxfoundation.org/taxdata/topic/15.html

http://vote98.sos.ca.gov/VoterGuide/Propositions/10.htm

http://en.wikipedia.org/wiki/California_Proposition_63_(2004)

http://sacbee.com/topstories/v-print/story/1476432.html

http://abclocal.go.com/kgo/story?section=news/politics&id=6559301

Upcoming posts:

“California gays bring the hate.”

“Dear Pres. Bush & the GOP, thank you for Obama. Sincerely, America.”

“Why California Democrat Legislators are asshats.”

“Is it time for two Californias?”