(January 29, 2004) The California Chamber of Commerce-led coalition opposing Proposition 56, the “Blank Check Initiative,” brought its message to the State Capitol yesterday.
With members of the large and diverse coalition standing behind him, Chamber President Allan Zaremberg emphasized again and again, “The real aim of Proposition 56 is to make it easier for Sacramento politicians to raise taxes.”
Proposition 56 eliminates the current requirement that any tax be approved by a two-thirds vote of the Legislature.
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| California Chamber President Allan Zaremberg outlines problems with Proposition 56, the “Blank Check Initiative” on the March ballot at a press conference on the steps of the State Capitol yesterday. |
Deceptive Measure “Of course, you won’t hear anything about that part of the measure if you talk to proponents,” Zaremberg said. “Proposition 56 is a deceptive measure that pretends to hold politicians accountable, but instead rewards them with an open-ended blank check.”
The backdrop for comments at the State Capitol press conference was a giant banner bearing the question, “Do we really want to make it easier for Sacramento politicians to raise our taxes?”
Flanking the podium were income and property tax bills, as well as products ranging from gasoline and light bulbs to an umbrella and a soccer ball — all to illustrate the many types of taxes that would be easier to increase if voters approve Proposition 56.
Speakers pointed out that Proposition 56 will give Sacramento politicians a freer hand to increase sales and income taxes, property taxes — in the form of a parcel tax — and other state taxes year after year, without justification or bipartisan consensus.
Key Protection
“The two-thirds vote requirement is the most important protection taxpayers have against unlimited, unjustified tax increases year after year,” said Carol Evans, vice president of the California Taxpayers’ Association. “It’s not that Californians have been stingy when it comes to paying taxes. State taxpayers are already ponying up to the tune of $130 billion in state and local taxes each year.”
Despite that huge total, Cal-Tax found there were nearly 100 additional tax and fee increases proposed in the state Legislature that totaled almost $65 billion.
“Many seniors are on fixed incomes who pay their taxes and spend their money on essentials of life,” said Henry Hough, senior vice president, Western Operations, of the 60 Plus Association. “By making it easier to raise taxes, Proposition 56 would increase the tax burden on those who have little to no spare room for extra expenses.”
“For a small business such as mine,” said Michael Cosme, owner of Payroll Partners in Vacaville, “higher taxes means finding ways to reduce other costs: cutting salaries, cutting jobs, or closing down in California and moving out of state.”
By giving legislators an even freer hand to pass unlimited tax increases, opponents say, the Blank Check Initiative would harm California’s economy as businesses and consumers carry a heavier tax burden.
“We need real accountability here in Sacramento,” Zaremberg said. “The last thing we need is to make it easier for the Legislature to increase taxes year after year.”
Website
More information about Proposition 56 is available at www.noblankchecks.com.
In addition to the Chamber, the large, diverse coalition opposing Proposition 56 includes Cal-Tax, California State Sheriffs’ Association, California State Automobile Association, 60 Plus Association, The Seniors Coalition, National Federation of Independent Business, California Farm Bureau Federation, Nisei Farmers League, California Small Business Roundtable, Small Business Survival Committee and dozens of taxpayer organizations throughout California.
Staff Contact: Sara Lee