(June 23, 2003) - A California Chamber-led coalition has decided not to proceed with its own tax-reform measure, but instead to focus on defeating a massive tax increase initiative headed for the March ballot.

That proposed initiative, the so-called Budget Accountability Act, would allow the Legislature to pass tax increases with a 55 percent margin, instead of the current two-thirds vote requirement.

In effect, this would allow the majority party in the Legislature to increase taxes without the support of the minority party.

Helping Voters Understand
Leaders of Californians Against Higher Taxes, a coalition of taxpayers, consumers, businesses and retailers, vowed to put the true story of this initiative before all Californians.

“Our opposition needs to have a laser-like focus so voters clearly understand that this initiative threatens to raise taxes for every single Californian,” said Chamber President Allan Zaremberg. “While the proponents have deceptively named their initiative, the measure’s real goal is to make increasing taxes significantly easier by eliminating the two-thirds vote requirement.”

March Election Possible
The tax hike initiative could appear on the March 2004 ballot if supporters gather enough signatures this summer to qualify it for that election.

“Proposed tax increases before the Legislature this year totaled $60 billion,” said Larry McCarthy, president of the California Taxpayers’ Association. “This initiative would open the flood gates to higher taxes that will make California more expensive.

“Rather than raise taxes, legislators need to do a better job managing $130 billion in state and local taxes this state’s taxpayers already pay. There is more than enough tax revenue to provide quality schools, public safety, public works, a safety net for this state’s poor and other priority needs of Californians.”

The coalition had considered placing a counter-measure on the same ballot as the tax hike proposal. The coalition measure would have streamlined the budget process without adding the negative features of the tax hike initiative and required that fees which are truly taxes be adopted by a two-thirds vote.

Staff Contact:Fred Main