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BUCKLEY BLOG: My Marriage, Our Budget Deal and Taxes


12:56 PM  September 19, 2008

Before I got married, my dad counseled me to make sure that whomever I married shared the same sensibility I had when it came to spending money. Arguments over money, dad said, were among the biggest problems many couples faced.

Fortunately, I did marry a woman who feels the way I do about money. We try to live at or below our means. We don't have an extravagant lifestyle but we live comfortably. Here's the question--if we can live within our budget, how come our state lawmakers can't?

Why is it that every year, there's a budget crisis in Sacramento?

As the state budget battle dragged on over these past 81 days (81 days!), one of the questions I pondered was whether our elected officials actually have enough money in the coffers to allow us to live comfortably here in California. In short, are we adequately funding Sacramento to deliver the services we're demanding? Are we paying enough in taxes?

While my wife and I do agree on most things money, we do tend to diverge on this money issue.

My wife has more of what I'd consider to be a "European" sensibility when it comes to taxes. That is, she doesn't mind shouldering a much higher tax burden if it's accompanied by the promise that the state will provide more services for it. I agree we should all pay a fair share to our governments, but I tend to be a little more skeptical of those who end up controlling my tax dollars. That's my hard-earned money I'm handing over, and I expect it to be spent wisely and efficiently. Unfortunately, it frequently isn't. We all know so much government money is wasted.

Still, even with my skepticism, I might be willing to pay a little more if I knew we'd get good schools for our kids, an infrastructure that can handle our growing population, police and fire protection and all the other things that make for a safe and comfortable life for all of us in California.

The question is: Do I have to pay more to get those things? Or do lawmakers simply need to do a better job of managing what they already receive from us? Do we we need to change the way we do business in California? Is it time to re-examine what some call the "third rail" of California politics--Proposition 13?

Most agree that what we have right now is a mess. The San Francisco Chronicle said in an editorial this week that was is needed is "sensible, broad-based reform of the state's feast-or-famine tax collection system. Nearly half of the state's revenue comes from personal income taxes, which is prone to wide swings with the ups and downs of the economy--and thus the take has dropped sharply this year. The state is also encumbered by Prop. 13 limits on property taxes and a string of voter-approved spending mandates. All of this combines to straitjacket the budget process."

What do you think? Do we have to give our lawmakers more money to meet our demands? Do they need to do a better job of managing with what they already have? Do we need to change the system entirely?

I've enjoyed reading your posts on the election and I continue to be amazed at how much time and thought some of you are putting in to your arguments. I look forward to your thoughts on our budget mess.

Posted by Frank Buckley | Permalink | Comments (23) | TrackBack (0)



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California has some of the highest tax rates in the country. We need a tax cut, not an increase!

We have the worst business climate in the country, we loose a business to another state on average of one per day and this due to the high tax rates we have.

The better question to ask is: What has Sacremento done with the 21% extra revenue that they have received over the last four years?

These lawmakers have written bills that mandate an increase in spending year after year and if you try and touch it you are accused of hurting the poor, the children. Yet, they feel right at home stealing the money set aside for transportation, we have a huge traffic problem here in SoCal, yet no one wants to build any additional traffic lanes, if we eliminate the carpool lanes we would improve traffic flow by an average of 32% (see the 91 FWY in Corona).

State government has a responsibility to make sure that you and I can get around this state freely and quickly in a manner of our choosing, yet they choose to spend our precious tax dollars on welfare for illegals.

Do you realize that in the 60's and 70's California had the highest rated education system in the country, but today, we spend thriple the amount we spent on each child, yet we rank at or near the bottom in education success and we are still told by the labor unions that we are not spening enough!

We need for fiscal conservatism in Sacremento!




Jim - Not only that but where is that 33 1/3 percent of the lottery proceeds really going that was supposed to go to education? Boy, did that turn out to be a "snake oil" sale job! Of course the way the L A Unified School District botches things - no amount of money can fix what ails them. The ones that feel the pinch, the kids and the teachers that try to teach without adequate supplies. Money that should be going for books and education supplies ends up paying for board members limo drivers and other kickbacks and amenities!! I have several teacher friends that I worship with at church and they describe their frustrations to me about the beuracratic BS they have to go through and how much out of pocket they have to do just to copy some materials so kids can read and get some learning in the schools. I don't blame businesses for leaving to Nevada and other states with the high taxes here. I originally thought I would live in California all my life and even retire, now there is no way I can see that I can fiscally retire here and live my golden years comfortably. I haven't reached 50 yet, but am already considering where do I want to retire in 18-20 years.




New topic. All right, Frank!!




First off, if the federal government can't handle money responsibly (failed banks, shrinking 401K retirement plans, borrowing too heavily from foreign countries) why should we expect local government to do any better? I know. No excuses. But there it is.

LEAVE PROP 13 ALONE. PLEASE. Before Prop 13 was passed, I hated the talk among voters who were for Prop 13 because they didn't want to support their local public schools. People of my generation didn't plan to have children, or if they did they were going to send their kids to private school. They didn't want to pay for a system they didn't plan to use. We're living that prophecy as we see the drastic decline of our public schools in only a couple of decades.

However, Prop 13 kept property taxes down. And for all those grannys who have been able to stay in their homes because they could afford their property tax, at least Prop 13 kept a roof over their heads.

In my mind Prop 13 is a double-edged sword, but my instincts say KEEP IT.

About the state budget. The governor is new. Our state reps have been unable to balance the budget long before he took office. I seem to recall Gray Davis in the same pickle.

Let's take a closer look at who's in office representing us. Find out how they're allocating our tax dollars. Because it seems to me the governor isn't the problem and maybe it's not the amount of money they have to work with but how and where they're applying it.




Prop 13 needs to be revisited, our state is in the worst shape it has been in decades and many of the problems can be attributed to its passage. Of course, our current Governor as well as the Bush Admin. have been absolutely worthless and ineffective as leaders. Neither of them has any credibility left as fiscal conservatives, in fact, our nations debt is a staggering 10.7 trillion! As for the golden state: California's unemployment rate at 7.7% is the highest since 2001, our public education system ranks near the bottom nationally, and our infrastructure is in dire need of repair. Due to greed, lack of vision, inept leadership, etc., (the list in endless), our state and nation is at the precipice of disaster. We are financially, morally and ethically bankrupt.
And now for the good news; oh! right, there isn't any.




Well, one thing they could do is fix the roads. When I moved to LA, my mileage dropped from 30 mpg to about 18. Seems to me that there is a good bit of opportunity for across-the-board savings right there.




This is from LAUSD's Master Plan: "English Learners constitute 41 percent of the District’s K-12 population."

This is why CA is no longer top-ranked as in the '60s and '70s. Throwing money at this issue won't fix it.

The state education system, and local districts, and teacher's unions, have all had decades to fix the problem and they have failed. Any responsible parent will send their kid to private school, or move to a select district where students have proven performance. It is a shame that what was once an excellent government provided service has now turned into a sham that requires an "every man for himself" mentality to give one's own children a fighting chance to gain useful knowledge.




Boy, I WISH, my parents made a bigger deal of this than in marrying within my religion. The religion issue has been nearly totally inconsequential in nearly 20 years...the money thing...Hoo-Boy, it's been hard. I want to live slightly below our means, she wants to spend all the dough until it's gone.

THIS IS SO TRUE. It's the source of a half-dozen arguments a week. Guys: her MONEY habits are more important than anything...and YES, the sex loses luster regardless of what you might hope for.




California's budget has grown exponentially in the 30 years since Prop. 13 was passed. After throwing out Gray Davis for growing government in the range of 50-60% over 5 years with huge deficits, our so-called Republican replacement has grown government slightly more over 5 years.

The problem is not Prop 13. The problem is not revenues. The problem is spending. This budget could have been fixed very easily - just use last year's numbers, with whatever increases in revenue going to needy departments that can convince the Legislature they need a little more.

We need to go back to the Gann-type limit where spending can only increase by the sum of inflation and population growth.




State government has failed to provide the basics; education, roads and security with some of the highest tax rates in the U.S. Instead, they try to provide services for people who are here illegally and dubious "services" of little value to those who actually pay the taxes. While I applaud stopping unfair tax increases, why don't they let everyone get this benefit, instead of a few participants who have been able to live in the same home for 25 years?

Proposition 13 is completely unfair to people who have purchased their homes in the past ten years -- it is Rent Control for homeowners and has contributed to the public school meltdown. I pay 10x the taxes of my next door neighbor who has a nearly identical home. And now, he can give this home to his daughter, who continues to receive the "free ride" of living in an expensive home with minimal taxes, while their neighbors pay the freight.

Shouldn't everyone have to pay a fair and equivalent rate? What happened to Equal Protection under the U.S. constitution?

If you want to allow a certain class of landowner to pay less...fine, but when they reap the benefit of accumulating value by reselling or transferring the property at a much higher price than they pay taxes on, they should have to pay the difference in property taxes they avoided all those years out of the equity windfall they are now receiving. You could argue that if we don't like it, we don't have to live here. Be careful, don't tempt us, there are many other places we can take our chips that we wouldn't have to subsidize property owner Freeloaders and suffer bad public schools.

Not only is this patently unfair, it has destroyed public schools.




Chris Kitze:

I understand Prop 13 protects the tax rate for the person who bought property before it was passed in 1978 so that senior citizens weren't priced out of their homes.

Once the house is sold or is inherited, even quick claimed, the tax rate increases unless the new owner files under Prop 58.

* http://www.sccgov.org/portal/site/asr/agencyarticle?path=%252Fv7%252FAssessor%252C%2520Office%2520of%2520the%2520%2528ELO%2529&contentId=8660bb3166b34010VgnVCMP2200049dc4a92____


Commercial property also falls under the Prop 13 blanket. Ownership doesn't change as often as residential property. That's the source of revenue from which California is losing tax dollars.

* Taxing commerical properties
http://www.caltaxreform.org/?p=5

* Taxing homes and commercial http://www.svmoms.com/2008/04/education-topic.html




The problem I have with taxes are that no matter how much money you give “them” they always spend all of it and then want more. A lot of people are not good with money and the elected people are no different. They spend all they get and then finance the rest – sound familiar? Like any good investment if you get good value for your money you don’t mind spending it, I just think most of the time they get it wrong. My position is give them only what it takes to do their job. Make them convince you of the value of any additional money “they” need. Kinda like you would do for your children.




If we are unable to meet a deadline on our jobs, we don't get paid. Why can't the California State legislature have all their per dieums and salaries withheld until they meet their budget deadline? Don't take it away from the other state workers and public education who have no control of the budget whatsoever. I guarantee that the budget would be passed in a much more timely manner should out state legislators have to face personal monetary consequences.




Frank, I think you are right that we all agree that California is financially in a mess. It is one of the highest taxed states in the nation now. Craig was right on the nose about businesses leaving to re-locate in other tax-friendly states. We need to encourage companies to do business here in the southland especially. This will help increase revenues for the state.

In fact, one example it seems much of Hollywood is re-locating their production in other states because of incentives from other states.

I also agree about the comment about spending being out of control, both here in the state as well as in Washington. No more blank checks! No more borrowing!

Several people already mentioned that the infrastructure is crumbling and the decline in public education will only get worse unless something is done immediately. We've got to quit spending what we don't have. Live within our means.

I like Carol's reply about letting the legislature feel the pinch if they don't meet their deadlines. That ought to create a little sense of urgency.

-m




Frank,

No offense ...but a newscaster's income has got to be lot easier to budget your live style, and live within your means, than the average American is facing right now.

The California budget is a problem. But the national crisis and the governement bailout of the rich banking industry...is a far greater problem. The 750 billion dollars does nothing for the middle class family that is currently in more financial trouble than since the great depression. I can see why Congress won't write this check. The "check" should help all the homeowners not just the banks and mortgage lenders.

If the government is buying up bad mortgages...then why aren't they buying them in order to help the homeowners and allow them to continue to own or rent back their homes, and stay in their homes-financed by the government?

This bailout is just another scheme to fund the rich and ignore the plight of the average family.




I got this e-mail it makes sense:
I LOVE THIS PROPOSAL !!I’m against the $85,000,000,000.00 bailout of AIG. Instead, I’m in favor of giving $85,000,000,000 to America ina We Deserve It Dividend. To make the math simple, let’s assume there are 200,000,000bonafide adults in the U.S.Our population is about 301,000,000 +/- counting every man,womanand child. So 200,000,000 might be a fair stab at adults 18and up.. So divide 200 million adults 18+ into $85 billon that equals$425,000.00. My plan is to give $425,000 to every person 18+ as aWe Deserve It Dividend. Of course, it would NOT be tax free.So let’s assume a tax rate of 30%. Every individual 18+ has to pay $127,500.00 in taxes.That sends $25,500,000,000 right back to Uncle Sam. But it means that every adult 18+ has $297,500.00 in theirpocket.A husband and wife has $595,000.00. What would you do with $297,500.00 to $595,000.00 in yourfamily?Pay off your mortgage – housing crisis solved.Repay college loans – what a great boost to new gradsPut away money for college – it’ll be thereSave in a bank – create money to loan to entrepreneurs.Buy a new car – create jobsInvest in the market – capital drives growthPay for your parent’s medical insurance – health careimprovesEnable Deadbeat Dads to come clean – or else Remember this is for every adult U S Citizen 18+ includingthe folkswho lost their jobs at Lehman Brothers and every othercompanythat is cutting back. And of course, for those serving in ourArmed Forces. If we’re going to re-distribute wealth let’s really doit...instead of trickling outa puny $1000.00 ( “vote buy” ) economic incentive.If we’re going to do an $85 billion bailout, let’s bail outevery adult U S Citizen 18+! As for AIG – liquidate it.Sell off its parts.Let American General go back to being American General.Sell off the real estate.Let the private sector bargain hunters cut it up and clean itup. Here’s my rationale. We deserve it and AIG doesn’t. Sure it’s a crazy idea that can “never work.” But can you imagine the Coast-To-Coast Block Party! How do you spell Economic Boom? I trust my fellow adult Americans to know how to use the $85BillionWe Deserve It Dividend more than I do the geniuses at AIG orin Washington DC . And remember, The Birk plan only really costs $59.5 Billionbecause $25.5 Billion is returnedinstantly in taxes to Uncle Sam. Ahhh...I feel so much better getting that off my chest.




To quote PJ O'Rourke, "giving money and power to politicians is like giving whisky and car keys to teenage boys."

The reality is that we live in a society where the vast majority of people are content to live off the efforts of others. There is no end to their "wants" that they believe is theirs by right, never mind the naked extortion of others required to fund it. The last census showed that those who earn the most are actually leaving the state to move to another which doesn't punish them for being successful. An example: Tiger Woods saved $4 million a year in taxes by relocating to Florida. My wife and I are looking at following him. Whatever happened to personal responsibility and accountability? Frank, you're right on in your beliefs. That's why they don't call taxes "donations".




The key to peace is here! Michael Douglas Carlin is trying to achieve his goal of saving the environment and the economy. With his new book, “A Prescription for Peace”, this humanitarian is on a goal to make the world a better place. The first way to change the world is by being president, so Michael Douglas Carlin is a new candidate for president. To get more information about Michael Douglas Carlin running for president, or for his book, go to www.mikecarlinforpresident.info!




The key to peace is here! Michael Douglas Carlin is trying to achieve his goal of saving the environment and the economy. With his new book, “A Prescription for Peace”, this humanitarian is on a goal to make the world a better place. The first way to change the world is by being president, so Michael Douglas Carlin is a new candidate for president. To get more information about Michael Douglas Carlin running for president, or for his book, go to www.mikecarlinforpresident.info!




Frank,
Your wife is a lucky woman. I've been seeing that consumer debt has actually dropped for the first time in ten years. IT IS ABOUT TIME! Time to sober up and live with the financial rehab that we all need from the binge spending we've been on. So why is this drop being perceived as negative?




Frank,

Our dads were wise people! While I am gay-I got the same message, as did my domestic partner. This is why we have no problem leaving this misrable state for a more affordable one! We have alot of gay friends who have done the same-another one leaves for Seattle on March 1st!

When I reited in April of 2008, from the Los Angeles Police Department; Robert and I began to look at "retirement" options.

We sat down and look at all the numbers. We were shocked at what we found- we discovered that Robert is working just so we can pay our taxes! That's sales tax, DMV fees, cell phone Fees, you name it!

We have two pick ups- one costs 612.00 a year to register and the other costs 525.00 to regester. NOW DOUBLE THAT IF THIS BUDGET PASSES! We have STOPPED SPENDING ABOUT 2 years ago-to ramp up for this retirement.

Once we move to Texas we can afford that NEW horse trailer which will cost 45,000.00! OUT THE DOOR! TAX/FEESS INCLUDED! So who lost-CA did!

Many of our gay friends all seem convinced that california is the only place people like us can live- we know better and on March 21st we will be moving to Texas. if this budget passes it will cost us over 2,000 extra in fuel alone to leave this misrable state!

The cost of living, quality of life, and just about everything will be lower in Texas!! GICO our insurance company has told us that when we move out our auto insurance will drop by 1,000.00 per year. Our property taxes will drop by 4,000.00 per year! DAMN THAT IS A PAY RAISE!

We have given up on this state and anyone who thinks they can control those loosers in Sacramento is only kidding themselves! Republicans and Democrats they are all the same-take, take, take-as long as it is our money they have no problem spending it!

REMEMBER: "ABC" WHICH MEANS "ANYWHERE BUT CLAIFONIA" Palmtrees and sunshine are only worth so much!

John and Robert
Agua Dulce, CA 91390





Frank
Your father and my father were wise men!!!

To be honest, I send those knuckle heads in Sacramento e mail telling them to NOT PASS THIS BUDGET! To give you an idea how bad this is let me give you a snap shot of where I (we) are at right now with this new state budget and the tax hikes.

I am a retired LAPD OFFICER who is now living on a FIX pension-I retired in April of 2008. I have domestic partner-a guy (yea we are gay) and no kids/ X wives or crazy family stuff like that. We are two guys with great jobs. So, we do OK compared to a lot of people just trying to get by these days-I have seen how hard it is for people to make ends meet as a cop.

We have two pickups- one costs 612.00 a year to register the other 512.00 a year to register (which they want to double!!). One is gas and the other is diesel. We currently pay 5,500.00 a year in property tax- now factor in all the sales tax we pay every time we buy something. The high cost of car insurance living in this state, and all the other “state fees” we pay. When we did an “audit” of our spending in January 2007, we learned that my partner Robert is working just so we can pay all the taxes and fees!!!! Now they want to raise all of this!

The choice was clear to us- we had to leave the state once I retired. Well, we got lucky and sold our home. Like many of our gay friends- they are now leaving for other states! Some claim CALIF is the only place people like us can live- well maybe in the 1950’s- but not anymore!

We are now off to Texas.
Once we leave everything drops in price. Our Auto insurance through GICO will drop by 1000.00 a year. Our vehicle DMV fees by 200.00 per truck! Our property taxes are going to drop by over 2,000.00!!! We will get more home and more land for much less!

Frank, this is a damn pay raise!!! Texas is one of the only "solvent states" in the union right now! Thats why they do better than CA-that state loves people from CA becuase we do not "drain the system!!!"

Robert will transfer to Time-Warner in Texas and I will go to work as a cop in a small town. We have avoided doing a lot of big item spending-like our new horse trailer-why? We can get it much cheaper in Texas or out of state!! We currently do a lot of shopping on the internet-why? We don’t pay sales tax!

Frank, this all adds up-by leaving we make money-not give it to those losers in Sacramento. In case you missed it- those yo-yo’s claim they may have to “adjust spending again if taxes declines even more”. So, this means the people of CA could face more tax hikes and more fee increases come September!!! NOT US- WE ARE GONE AND LEAVING THIS STATE!

We have well over 100 friends who have left or are leaving the state due to the high cost of living and we are next in line! If this budget passes (when it passes) it will cost us over 2,000.00 in just fuel to get out of CA and into Texas! Sunshine and Palm trees are only worth so much-the price is too high in this state!

WE CANNOT GET OUT OF THIS MISRABLE STATE FAST ENOUGH!!

John and Robert
Agua Dulce, CA 91390




Hello to all ! Great site. I am new here greetings to all from Poland.



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