(March 8, 2010) The California Chamber of Commerce is part of a coordinated effort to qualify the “Stop Hidden Taxes” initiative for the November ballot.

The initiative is an effort to stop the Legislature from imposing hidden taxes on California taxpayers just by calling those taxes fees.

California’s Constitution requires the Legislature to pass new or increased taxes with a two-thirds vote. To circumvent this requirement, legislators simply mislabel new or higher taxes as “fees” and then pass them with a lower vote.

Reducing Tax Burden

“The way out of this recession is by creating jobs, growing the economy, and reducing the tax burden on hard-working California families and the businesses that create those jobs,” said CalChamber President and CEO Allan Zaremberg, co-chair of the Stop Hidden Taxes committee.

“Hidden taxes and higher fees work against job creation and make it even harder to recruit the businesses and jobs that are needed to re-energize our economy and provide the taxes to fund critical state services,” Zaremberg said.

“If we are going to attract jobs to California, businesses need the certainty of a stable tax structure, not the constant exposure to unending revenue gimmicks. Voters have said ‘enough is enough’ to higher taxes and fees and passage of this measure will help end the politicians’ deceptive practice of labeling taxes as fees so they can be passed with a simple majority vote,” continued Zaremberg.

Constitutional Amendment

The Stop Hidden Taxes initiative is a constitutional amendment that simply and more clearly defines fees and taxes to close loopholes used by the Legislature to avoid the two-thirds vote requirement.

The initiative also applies to local governments; includes a provision to sunset any fee/tax increases not meeting the requirements of this measure enacted between the beginning of this year and the effective date of this measure if it is passed by voters; and prohibits the Legislature from using a simple majority vote to raise taxes on one group while reducing those on another group (the so-called “revenue neutral” maneuver now being considered by the Legislature).

Learn more at http://www.nomorehiddentaxes.com/.