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Occupy Plus Ballot Measure = A Millionaire's Tax in California

Posted: 12/07/11 04:01 PM ET

California began going downhill when Howard Jarvis' Prop 13 passed in 1978. Thus began the end of funded public education, libraries, road repair, healthcare, senior services and the most respected higher education system in the world. It brought us Grover Norquist, the no-nothing Republican party of 2011, and a pledge to never raise taxes even if our country is burning. Meanwhile on the east coast, Wall Street banks get bailouts while giving their CEOs huge bonuses; Republicans in Congress want to raise taxes on middle class families by opposing the payroll tax cut extension; the rich get richer and buy off politicians in Washington while the middle class is in danger of disappearing. When Occupy Wall Street responds to it, there's a police crackdown. Is there any hope to get the rich, who have benefited most from government investment, to pay their fair share so we can invest in the middle class?

In California, the answer is yes. On Monday, Courage Campaign, the California Federation of Teachers (CFT), and California Calls, supported by two dozen grassroots community groups including the UC Student Association, Alliance of Californians for Community Empowerment (ACCE) and ReFund CA filed a ballot measure to go on the November 2012 ballot. The Millionaires Tax to Restore Funding for Education and Essential Services Act of 2012 raises taxes on individuals making more than a million dollars a year. The measure would generate $6 billion a year and provide funding for K-12 and higher education, including community colleges, essential services for children and the elderly, public safety and road repair. The money only begins to fill in the hole that the recent cuts have made, but it is a first step in the long road to ending the tyranny of the minority, the folks who seek to concentrate more wealth at the top. And most importantly, it puts people -- teachers, firefighters, police officers, and more -- back to work for our communities.

This measure has national implications. It gives an electoral voice to the Occupy movement that simply wants the 99% to have a shot at rebuilding our America. It gives hope to students now burdened by more than a trillion dollars in debt. It offers a chance to refund the biggest state and economy in the nation, to set a model for the country, putting millions of people back to work. And it can save lives.

Governor Jerry Brown, who lived through Prop. 13 in his second term as governor in 1978, also introduced a plan. His plan calls for sales taxes which would hit the poor the hardest. An increase in sales tax would affect everyone, but especially those who are struggling in our economy. Those with the least will end up paying the most as a percentage of their income, which is why sales taxes are regressive. His plan increases taxes on those who make more than $250,000 a year. And it actually taxes people who make $500,000 a year at the same rate as it taxes people who make more than $2 million a year. It is projected to raise $7 billion a year, all of which goes into the general fund for the Legislature to spend as they wish. Although it looks on the surface as if it goes to education, it actually allows the Legislature to reallocate the funds, and does not add a dime directly to education.

To be clear, I'm delighted that the governor has proposed to raise taxes. It's a real change. If his measure is on the ballot, I'll vote for it. My big concern is that most other people will not.

That's why our coalition proposed a millionaire's tax. First, it's principled. It says, "If you make more than $1 million a year, you can afford to pay more to keep the system in good shape." Second, it can pass. Our research shows that well over 60% of likely voters would support this tax, whereas the public opposes the governor's decision to increase the sales tax and increase taxes on those making more than $250,000. Third, it fills a need. Our state is not broke; we've just allowed the right wing to make us think it is. How can our state be broke if we have a GDP in excess of $2 trillion? The wealthiest in our state have accumulated the vast share of income since 1978. Meanwhile, the rest of us have fallen behind. And last, unlike the governor's proposal, the revenue goes into a dedicated lockbox for education and critical public safety services that the Legislature cannot touch.

Progressives rail against President Obama because he often refuses to stand on principle. Lately, he's been doing better. So when a clear, strong, populist and popular ballot measure comes along that can put the voice of the 99% and the Occupy movement into law, the time has come to sign on. Imagine November 2012. Imagine California defining the national dialogue by showing that millionaires are morally obligated to pay their fair share. And imagine that we begin to put California back in shape. That's our plan. If you like it, join us to help pass it.

 

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HUFFPOST SUPER USER
Foodgrade
Learn to grow banannas
04:55 PM on 12/10/2011
I can't believe how people keep falling for the con. This tax measure is about raising the sales tax, not taxing the rich. The "tax" on the rich is so minor as to be approxinately no tax at all. It's cover for the sales tax. We're supposed to be so eager to kick the rich that we swallow the sales tax whole. I really do hope people read the measure. The sales tax till be very clear and simple. The tax on the rich will be very fuzzy and subject to a court challenge. It won't happen, but the sales tax will. Geeze.
12:45 PM on 12/08/2011
"The voice of the 99% and the occupy movement" ??? Only 38% agree with the occupy movement so that is not the voice of the 99%. time for OWS to get a new catch phrase
ProudConservative
Fiscal conservative, social moderate
11:37 AM on 12/08/2011
The more you tax, the more they flee. California's problem is not a lack of taxes, it's a lack of spending control. I left there in 1994 because of that very reason. I got really tired of having my taxes constantly increasing, while welfare and state employee benefits grew to unsupportable numbers. It's not rocket science.
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HUFFPOST SUPER USER
Foodgrade
Learn to grow banannas
04:57 PM on 12/10/2011
I agree with most of it, but welfare. I didn't see one word in your post about the huge give aways to corporations. Is that because you still believe in the tooth fairy and trickle down?
HUFFPOST COMMUNITY MODERATOR
JScott
John Galt's last name is McGuffin-Smithee
11:19 AM on 12/08/2011
Yup the RWNM has commented here and all they offer is the usual crap
AKA the rich will leave---PROVE IT! Name a crowd of the rich that have left
Ca is a high tax state-WRONG it falls in the middle
Big companies/job creators will leave-big companies aren't in the business of creating jobs, the want to create PROFITS. Elsewhere on here Warren Buffett is buying a Calif. solar facility.
Regulation is too burdensome-so it means they don't wan't clean air and water, we need to be like China?
Public employee pensions are too high-What and no whining about executive compensation that has soared way more????????
Blame illegals-That's racist and besides 'illegal immigration' has slowed A LOT due to the recession and the border drug wars

ON ALL THEIR TALKING POINTS THEY ARE WRONG WRONG WRONG WRONG!!!!!!!!!!!!!
01:24 PM on 12/08/2011
Just a couple of notes, I don't pay for ANY executive's compensation unless I buy that product or am invested in their stock. I DO NOT have a choice as to public employees golden pensions.

Just because illegal immigration has slowed, doesn't mean it doesn't exist. If you think 30K coming across that get caught, doesn't cost us money, and this doesn't include the majority that DON'T get caught, then you are just in denial.

We are not in the middle on taxes, we are #2 in overall taxes, #2 in taxes on businesses, and #1 on unfriendliness towards business and ranked #1 by fortune 500 CEO's as the worst place to start a business.

We have lost over 600,000 mfg jobs since 2001 and have basically become a service state. These jobs have mostly gone to our neighbors, AZ and NV with TX one of the largest benefactors of our largess.

So tell me, how in the world do you think raising taxes will help lure these people or businesses back?
HUFFPOST COMMUNITY MODERATOR
JScott
John Galt's last name is McGuffin-Smithee
02:55 AM on 12/09/2011
Right wing talking points.

Jeez if you don't like it do what conservatives say 'MOVE TO TEXAS'!!!

So tell me, how in the world do you think raising taxes will help lure these people or businesses back?

We've got 38 million people and the 16 largest economy in the world, if a few people left that would be fine with me, California was much better when there was only 20 million people here. MORE IS NOT BETTER!!!!!!!!!!!!
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HUFFPOST SUPER USER
Foodgrade
Learn to grow banannas
05:04 PM on 12/10/2011
The entire freeze dried vegetable industry from the central valley. The circuit board industry, the chip industry, the battery manufacturers, fish farms, plastics extruders and molders, generator manufacturers, wind power manufacturers, solar cell manufacturers. The list goes on. The Republicans were stupid for turning a reform of civil service into an attack on the unions, but Republicans screw up anything they touch. In the meantime. We have a grossly bloated state government while teachers are bulldozed. We have a totally corrupt school and university administration milking Californians for multi millions, cops retiring on 200K a year and massivly over staffed state agencies. The stimulous money? All soaked up by state agencies. We need to get rid of 60% of state government tomorrow and pay teachers with some of that money
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scottishboy
Born in the USA!
10:03 AM on 12/08/2011
If the folks from The Peoples Republic of California fall for this, they are even more doomed than they might think they are now.
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11:24 AM on 12/08/2011
No, Jacobs has articulated the real source of both state and national problems. The right seeks a jungle so that it can escape low developmental status with economic rank. That explains it's ideology and worldview far better than anything else. Ask me why if you can prove otherwise.
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scottishboy
Born in the USA!
12:03 PM on 12/08/2011
You must be using "liberal speak" because I'm lost as-to-what you mean.

“The right seeks a jungle so that it can escape low developmental status with economic rank.”
09:28 AM on 12/08/2011
California needs to reform it's pension program for public employees. No more retirements at the age of 50 with full benefits. No more $125,000 a year prison guards. No more $150,000 a year pensions for ordinary, no brain jobs. No spiking of the final 3 years of income to fraudulently raise pensions. No double dipping. If these reforms happen, then maybe the citizens of California can talk about raising taxes. No bailout from the rest of the U.S.
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11:28 AM on 12/08/2011
No, it needs to get rid of mandatory prison sentencing and prop 13 on all property. A means test could be applied to primary residences long held by one owner. The right has simply achieved what it set out to do; bankrupt government and then sell the commons to friends.
09:06 AM on 12/08/2011
I don't know how you can blame this on Proposition 13. If you look at total taxes paid per capita, Cailfornia ranks 11th in the country.

http://www.census.gov/govs/statetax/04staxrank.html

The writer tries to make it sound like Californians are vastly undertaxed. We're not.
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HUFFPOST SUPER USER
Lesperado
glad I wasn't born conservative
10:00 AM on 12/08/2011
Because Prop 13 locked in Property taxes, both residential and commercial, to the time the property was bought. No percentage increases as property values went up.
01:55 PM on 12/08/2011
You are incorrect there. You have a 1-2% annual increase. Taxes on my home that I bought 16 years ago have gone up EVERY year. In addition, when the property changes hands, the taxes go to new value. So all of those homes that are constantly changing hands from the 30K house bought 30 years ago (and taxes went up every year on), suddenly skyrocket when it sells for 500K. Property tax revenue for CA has always been it's most consistent and reliable revenue streams.
HUFFPOST COMMUNITY MODERATOR
JScott
John Galt's last name is McGuffin-Smithee
11:11 AM on 12/08/2011
Nor are we overtaxed, but of course the RWNM is silent on that.
12:41 PM on 12/08/2011
We are the second highest taxed state in the US and #1 west of the Mississippi. We are ranked #2 in taxes and regulations on business and ranked #1 by fortun 500 CEO's as the worst state to start a business. We have among the highest sales and income taxes. So yes, we are overtaxed. The problem is we OVERSPEND! $11B for incarceration!! This is triple the closest state. 86% of our school budget goes to salaries and benefits. Gold plated pensions that are the envy of the US. The D's have a spending problem that comes from there marriage to the unions and it is bankrupting our state.
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HUFFPOST SUPER USER
Bart DePalma
Bart DePalma
08:23 AM on 12/08/2011
Can CA possibly make itself less attractive to business? If this nonsense passes, your recession will deepen and we will get more Californians migrating to our low tax and low reg Colorado.
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HUFFPOST SUPER USER
Lesperado
glad I wasn't born conservative
10:02 AM on 12/08/2011
The recession will deepen because of new revenue? Interesting.

"California­ns migrating to our low tax and low reg Colorado." People have been coming and going from that state since the Gold Rush.
08:06 AM on 12/08/2011
Putting aside the fact that education in this country is hardly underfunded (we spend more per pupil than any country except Switzerland and the federal expenditures per pupil have increased threefold in real terms since 1970 with little to show for it) I have to love the line " First, it's principled. It says, "If you make more than $1 million a year, you can afford to pay more to keep the system in good shape." Yes its principled- a Marxist principle. ("from each according to his ability, to each according to his needs" etc.). There is no principled reason, other than Marxism or one of its derivations, to argue why the "rich" or any one group should pay a higher average percentage of its income to the government. Actually, an argument could be made that the rich should pay a lower percentage of their income in taxes since they disproportionately use less of the government services provided by the taxes. For example, over 55% of the federal budget is transfer payments that go disproportionately to the poor and middle class. Also, the rich are less likely to use public schools, transportation etc.
09:00 AM on 12/08/2011
My wife is from Australia where one of her sisters is a teacher and their mother was a teacher for 30 years. They say that the American public school system is a tragic joke. In Australia they spend 20% less per student, yet the students perform better by every measure.
07:39 AM on 12/08/2011
I bet the Hollywood elite will be first to run.
Just read a piece about how Johnny Depp lives in France for just under 183 days a year so he can avoid paying French taxes.
08:57 AM on 12/08/2011
Oprah does the same thing in California.
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HUFFPOST SUPER USER
Lesperado
glad I wasn't born conservative
10:05 AM on 12/08/2011
CA is not, and never has been, Oprah's main residence.
HUFFPOST SUPER USER
TheOin2012
My micro-brew is empty.
06:55 AM on 12/08/2011
This is the wrong plan. People need to get behind Jerry Brown's plan, not some political promoter.
03:22 AM on 12/08/2011
The last time CA put aside a "big chunk of change" that was specifically earmarked for "education ONLY" should give insight as to what will happen next. I'm talking about the State Lottery. It was passed by the promise that all monies generated from it would go ONLY to education. After the "usual" slice off the top for costs and salaries (some guestimates put that at 40%) the monies did go to education. But then the Pols pulled their usual. In back rooms they cut that same amount from the budget, saying this money was now replaced by the Lotto proceeds. So in essence, the Lotto gave Pols that much more "to play with" and education didn't come out ahead at all. Usual.
iridium53
Semper Fi
01:01 AM on 12/08/2011
California gets back $0.78 for every dollar it sends to the federal government.

If California's Congressional contingent was doing its job, California's budget wouldn't be so bad.

California, the biggest state economy, supports the welfare states of many states that get a surplus from the federal government because they do not tax themselves adequately.

California needs to raise taxes so that we can return to a great state.

California's Washington Representatives need to do their job and start bringing back California's fair share of federal dollars.

Or vote them out of office.
05:55 AM on 12/08/2011
sounds like you're pretty upset others are taking your money. just keep raising your own taxes and giving it to my state. this liberal thing is working out quite well for me. And the best part is your entire state is run by liberals so there is little doubt whether it'll continue. I always love to here people say they want their taxes raised and their fair share at the same time.
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HUFFPOST SUPER USER
Lesperado
glad I wasn't born conservative
10:06 AM on 12/08/2011
It is a myth that CA is run by liberals. Look at the governors in the last 50 years. More Republicans than Democrats.
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HUFFPOST SUPER USER
Larry Lujack
10:34 AM on 12/08/2011
sounds like you love welfare when you are on the dole. pretty principled, aren't you?
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marshhen
Northern by birth, southern by choice
08:47 AM on 12/08/2011
Such irony. Liberals say don't raise taxes on the poor. Yet the poor live in the very states that you claim taxes should be raised, just so you can keep yours. LOL
iridium53
Semper Fi
12:35 AM on 12/09/2011
No irony to this at all.

California has poor people.

California has the second highest unemployment rate, and the most unemployed.
http://www.bls.gov/web/laus/laumstrk.htm

Let states like Kentucky, Arkansas, Virginia, etc - that receive significant support - pay more of their own way. Instead of cutting taxes so that companies go to those states - like Toyota did to Mississippi.
12:53 AM on 12/08/2011
California has contributed on average well over $3.65 billion dollars per year for the last twenty years into the federal treasury than it has received in Federal services in return. That amounts to $73 billion taken out of the CA state economy and spent in other (red mostly)states over the last 20 years. the
General debt now stands at $77 billion.
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marshhen
Northern by birth, southern by choice
08:49 AM on 12/08/2011
But the poor in these red states are devoted democrats. The very people liberals vow to help. But when it comes to their own pocket book, you say I want my fair share. LOL
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HUFFPOST SUPER USER
Lesperado
glad I wasn't born conservative
10:11 AM on 12/08/2011
Most poor are Democrats because it is easy to be a Republican when you have money... not so easy when you don't.
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scottishboy
Born in the USA!
10:11 AM on 12/08/2011
According to a recent study by Stanford University, the un-funded pension liabilities for the People Republic of California in in excess of $140-Billion. Do you think that works, comrade?
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11:30 AM on 12/08/2011
What is the liability of mandatory minimum sentencing and private prisons?
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HUFFPOST SUPER USER
Foodgrade
Learn to grow banannas
05:40 PM on 12/10/2011
Nope, and neither do the hand outs to corporations.
12:50 AM on 12/08/2011
states could tax the rich & corporations 10% and the federal govt tax them 10%...they still would not be paying as much as they paid under Reagan ..it makes you wonder how some people can say they are paying too much taxes now...now on pot, if they were to have it controlled by the feds and grown on fed land...none grown by people..only get it by prescriptions...that would work..maybe California could ask fed to have it as a trial state to see how well it would work??