Still at issue in California is the enormous shortfall in the state's finances for the fiscal year that begins July 1. Having cut $11.2 billion in projected spending, much of it from safety net programs, Gov. Jerry Brown and Democratic lawmakers are still hoping to fill most of the remaining $15.4-billion gap by increasing taxes.
That tax hike would cause the average Californian's tax bill to shoot up four different ways forcing most California adults to pay hundreds, if not thousands, of dollars more each year in a combination of higher vehicle license fees, sales taxes, gasoline taxes and income taxes. Dependent-care credits claimed by millions of families would be cut by about $200 annually. The increased taxes would remain in effect for two to four years.
Enter the new video from the Center for Freedom and Prosperity offers seven reasons why higher taxes are a bad idea. While the video focusses on the Federal Government, the principles and arguments against increased taxes are the same for California lawmakers who are once again considering raising taxes:
The video is narrated by Piyali Bhattacharya of Young Americans for Liberty, and here are her seven reasons.
1.Tax increases are not needed
2.Tax increases encourage more spending
3.Tax increases harm economic performance
4.Tax increases foment social discord
5.Tax increases almost never raise as much revenue as projected
6.Tax increases encourage more loopholes
7.Tax increases undermine competitiveness
These reasons are true for all levels of government - federal, state and local.
As we've said time and again, taxes are a poor substitute for doing the heavy lifting of re-thinking, reorganizing, and re-prioritizing government. No state better illustrates the failure of tax increases than the one time Golden State.
And let's be frank, if tax increases are not needed to balance the budget, then the only purpose they serve is to facilitate a bigger burden of government spending, which is why I like reason #2.Exit Note: Another reason to say NO to new taxes in California - Tax income has been outpacing forecasts. State officials are reporting an unexpected $2-billion surge in tax receipts that will help lawmakers close the remaining $15-billion budget deficit, and the Capitol is humming with hope that more is coming. Unfortunately that won't quell the Left's thirst for an ever increasing share of your taxpayer dollars.
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