May 16, 2024

Should Californians approve Brown’s tax extensions? CON: Eliminating waste must take priority

This article is part of a PRO/CON opinion piece on Governor Jerry Brown’s tax extensions. To view the opposing side, see here.

By Eric Zheng
Opinion Editor

Keely Murphy / La Vista

As part of his proposed budget, California Gov. Jerry Brown will seek the support of Republican state legislators to call a June special election for extensions on increased sales tax, income tax and vehicle registration fees. However, a more fiscally conservative budget would be a superior solution to California’s deficit problem.

Brown’s budget will eliminate California’s $25 billion deficit by a combination of cuts in spending and tax extensions, which will save the state $12.5 billion and raise $12 billion in revenue respectively.

Nonetheless, Brown’s proposed tax extensions must obtain a two-thirds majority in the state Assembly and Senate before going to the ballots in June. Representatives in the legislature should continue to ensure that the extensions, as they currently stand, do not reach that point.

Brown’s attempt to extend the increased taxes is an injustice to the state’s taxpayers. The tax increases were implemented in 2009 as “temporary” measures. Brown’s plan would retain the higher tax rates for an additional five years.

Letting the tax increases expire in July will lessen the burden on the state’s already strained residents. According to a study by The Tax Foundation, a nonprofit organization based in Washington, D.C., California’s residents already shoulder the sixth highest tax load in the nation; the average Californian pays 10.6% of his or her income to state and local taxes.

Aside from the tax extension, Brown’s budget will still necessitate deep and widespread cuts anyway. The proposal would cut $12.5 billion funding for state colleges, Medi-Cal, welfare and other social services.

Regardless of the amount of cuts made, some taxes will always be necessary. It is not viable for California to have a cuts-only budget, a possibility that Brown has addressed if the tax increases are not passed.

One positive characteristic of Brown’s budget is his support of k-12 education. However, without a source of revenue, cuts to all parts of California’s budget will be necessary.

Rather, in order to protect education and maintain a responsible budget plan, Brown must make key reforms to the government bureaucracy before considering cuts to social services.

Specifically, he must attempt to further downsize the state’s payroll for government workers and curb their exorbitant pensions and benefits. The best alternative to Brown’s proposal would be a budget that includes minimal taxes and protection of the state’s education program.

If Brown wants to extend the tax hikes for Californians, he must also try to cut government spending enough to diminish the amount that needs to be collected.

Since tax increases were already widely rejected last year, any extensions must only last for fewer than five years while also being accompanied by widespread budget cuts.

Upon taking office, Brown has been placed in a difficult situation involving the state budget and deficit. However, if Brown is able to reduce taxes and spending, he has the opportunity to form a budget to rebuild California and benefit all its residents.

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