Taxable Talk

Back in November California voters passed Proposition 8. This constitutional amendment to California’s constitution declared that the only legal marriage is between a man and a woman. The California Supreme Court upheld Proposition 8 today.

The impact of this is minimal. For federal tax purposes a same sex couple cannot file as married; for California tax purposes a registered domestic partnership or a same sex couple married during the five months when such marriages did occur will file a married return.

California voters rejected Propositions 1A-1E yesterday. Voters told Sacramento in no uncertain words it’s time to cut programs, and spend only the money you have. It will be interesting to see if the Democrats in control of both houses of California’s legislature get the message.

Given the economic climate borrowing money—especially given the likely $23 billion budget deficitg@mdash;will be difficult. Still I expect the Democrats to propose a budget that is equal parts budget cuts with equal parts of smoke and mirrors.

Republicans are going to propose a series of bills that would appear on paper to go after the causes of the problems. We’ll have to wait and see if they (a) actually get looked at by the Democrats and (b) if they do what they appear to on paper.

In one piece of good news California’s elected officials will be getting an 18% pay cut next fiscal year. Commissioner Kathy Sands said, “I think they should share in the sacrifices that everyone else has had to encounter.” Hurrah for some common sense.

Unfortunately, common sense hasn’t pervaded everywhere. The Los Angeles Times had a headline this morning, “California voters exercise their power — and that’s the problem.” The analysis piece blames California voters for demanding too much in service while not being willing to vote for tax hikes. Most of the spending increases were thrust upon the state by our liberal legislature, not the voters.

California voters said one thing very clearly yesterday: It’s time for a change. It may be a few months before we know whether our legislature got the message.

On Tuesday Californians will vote in a special election on six initiatives that, even if they pass, will still leave the state with a $15 billion deficit.

The Flash Report quotes Americans for Tax Reform:

The California government has lived beyond its means for far too long. Last year politicians in Sacramento spent $33 billion more than the state brought in. If a business were to operate like this it would go under. If a family were to budget like this it would go bankrupt.

State spending in California has increased 300 percent since 1991. Had spending been limited to the rate of population growth and inflation, the state would be sitting on a $15 billion surplus rather than staring down the barrel of a $21 billion deficit.

The above is all you really need to know about California’s government. It’s time for spending to be drastically cut. Perhaps the legislature will get the idea when Propositions 1A – 1E go down to defeat.