[priceyicey]

California Democrats devise plan to hike taxes
By structuring them as fees, they would skirt GOP opponents and raise $9.3 billion. A court fight looms.
By Jordan Rau and Evan Halper
December 18, 2008

Reporting from Sacramento -- California's Democratic leaders were planning a vote today on a brazen proposal to raise gas, sales and income taxes through a series of legal maneuvers that would bypass the Legislature's minority Republicans.

The Democratic gambit, announced Wednesday, would raise $9.3 billion to ease the state's fiscal crisis by increasing sales taxes by three-fourths of a cent and gas taxes by 13 cents a gallon, starting in February. The plan would add a surcharge of 2.5% to everyone's 2009 state income tax bill.

It would also require businesses to withhold taxes on payments above $600 made to independent contractors, as they are now required to do with salaried employees.

In addition, the Democrats said they would cut $7.3 billion from schools, healthcare and other programs. Their package would total $18 billion and nearly halve the state's budget shortfall, projected to reach $41.8 billion in the next 18 months.

Both the Assembly and Senate planned to vote on the package today. Late Wednesday, Democratic lawmakers were negotiating with Gov. Arnold Schwarzenegger over items he wanted included in the proposal before he would support it.


Inside the Capitol, the strategy is considered revolutionary, because it would sideline the GOP. Though Republicans are a minority in both houses of the Legislature, they have repeatedly blocked tax increases and thwarted budgets they did not like, because California is one of only three states mandating a two-thirds vote for both budgets and tax increases. Achieving that threshold requires some Republican votes.

"I still believe in bipartisanship," Senate President Pro Tem Darrell Steinberg (D-Sacramento) said at a Capitol news conference. "But there is an even greater responsibility than practicing bipartisanship, and that is to govern. And that is what we intend to do here today."

Republican legislators and antitax groups promised legal challenges to derail the Democrats' plan.

"Raising taxes on people and playing funny math and calling it fees is not governing," said Assembly GOP leader Michael Villines of Clovis. "That's trickery, is what that is."

The plan hinges on a legal distinction made by judges that a tax is imposed broadly and used for general government purposes, while a fee is charged to users of a specific benefit provided by government, such as a road.

The proposal would employ an arcane loophole in state law that lets legislators pass a tax bill with a simple majority vote -- if the bill does not raise more revenue.

The Democrats intend to do two things: eliminate some existing fees, including those on gasoline, and substitute tax increases that would include a 9.9% levy on oil extraction and the income tax surcharge.

Under the proposal, the Democrats would then reimpose the gas fees at higher levels; fees can be raised with simple majority votes. The gas money would go to roads and transportation. The net effect would be billions of dollars in new revenue for the state.

Similar proposals have been considered in past budget crises but never acted on out of concern that they would unravel in court. The Democrats said Wednesday the plan had passed muster with the nonpartisan Legislative Counsel's office, which provides legal advice to lawmakers. But the only opinion from that office that Democrats released was from 2003.

Democrats said this plan was the only way they could see of breaking the current budget impasse, which has stretched on for more than a month since Schwarzenegger called lawmakers back into session.

"Sen. Steinberg and I are committed to getting this job done with or without our Republican colleagues," said Assembly Speaker Karen Bass (D-Los Angeles).

Matt David, a spokesman for Schwarzenegger, said the Republican governor would not sign the measure unless it included cuts to the state's workforce, which public employee unions are resisting.

David said Schwarzenegger also is insisting that lawmakers include measures for mortgage relief and provisions allowing private contractors to perform more state construction and even take over some government facilities, such as roads.

"If it doesn't have these components, then the vote . . . is nothing more than a drill," David said in an interview.

Jon Coupal, president of the Howard Jarvis Taxpayers Assn., said the Democrats' bid violates tenets of Proposition 13, the 1978 initiative that capped property taxes and required that all other tax increases be approved by two-thirds of the Legislature.

"If they proceed with this proposal to raise taxes with a simple majority vote, they will be sued and they will lose," Coupal said. "So we're very confident this is more of a ploy than anything else."

Legal experts said no one can know how the courts would rule. Judges might be reluctant to take an action that could send the state spiraling into insolvency. On the other hand, the experts said, judges -- particularly those afraid of recall campaigns -- might be afraid of a populist uprising akin to the revolt that led to Proposition 13.

"It is absolutely a shell game," said Kirk Stark, a professor at UCLA School of Law. But "in the 30 years since Prop. 13 was enacted, the courts have been accommodating of legislative ingenuity."

Or, said another UCLA law professor, Jonathan Zasloff: "The court may just say, 'We are not dealing with this; it is not our job' " to run the state's finances. "It will be a galvanizing issue that tests the independence of the judiciary."

If the plan were to survive legal tests, the state would still face a debilitating budget gap and a cash crisis so severe that California's top three financial officials -- the state treasurer, the controller and Schwarzenegger's finance director -- voted Wednesday to freeze financing on road, levee, school and housing projects.

State fiscal experts said lawmakers would have to erase the entire budget gap before they would resume issuing the bonds that finance such projects, which number more than 2,000. They said state bonds are not selling while financial speculation grows that California may become insolvent.

"In a market where investors are looking for quality, we do not feel they are going to want to buy the bonds of the state of California" until the state's finances are righted, said Paul Rosenstiel, a deputy treasurer. "We don't hear from the investment bankers at all these days."

[priceyicey]

Ten days remain before California will begin defaulting on its obligations.
...
The state is spending so much money that Governor Schwarzenegger could fire every single California civil servant and still not come close to balancing the budget! Even if he also fired the other 149,000 legislative aides and people who work for the state’s courts or university systems (people not directly under the state’s control), he still couldn’t eliminate the deficit.

Lawmakers are spending so much money that California could become a state without employees and still not balance its books.

Alternatively, Schwarzenegger could close every single state prison, fire the guards, release all the prisoners—plus cut off all funding for health care across the entire state—and still be billions in the hole.

Governor Schwarzenegger has described this deficit as a rock upon California’s chest that is suffocating the state.

Already Schwarzenegger has ordered most state offices to close two Fridays a month beginning in February. The unpaid days off will effectively reduce employee salaries by around 10 percent.

But the situation is now so critical that state Director of Finance Michael Genest says that in just over a week, California will be forced to defer making payments on certain state commitments. Instead, he says, “the state will have to defer or pay with ious for most of its obligations.”

That is right; California will be reduced to sending out bits of paper indicating that at some point in the future, if finances ever allow, the state will make good on its bills.
...
State Controller John Chiang says that tax refunds will be delayed, as will payments to state vendors and local social aid programs. Some rent and food assistance programs will be held back. Californians should also eventually expect permanently higher taxes, reduced services, and mounting job losses. Not a pretty picture, but one that looks likely.

Each day that passes without a new budget will necessitate even more cuts and tax increases, says Genest.

America be warned: As California goes, so goes the nation.

[hauptdaunnila]

The whole of USA is bankrupt. The only way out of this is to declare WAR!!! Or create a WAR or manufacture a WAR!!!

[Ikhqgvas]

Yes i agree, WW2 solved the great depression. there must be a WW3

i suggest either Nuking mecca or bombing kelings randomly. both are Pests.

[Blacksheepaalredy]

California Democrats devise plan to hike taxes
By structuring them as fees, they would skirt GOP opponents and raise $9.3 billion. A court fight looms.
By Jordan Rau and Evan Halper
December 18, 2008

Reporting from Sacramento -- California's Democratic leaders were planning a vote today on a brazen proposal to raise gas, sales and income taxes through a series of legal maneuvers that would bypass the Legislature's minority Republicans.

"[/B]

As long as you respond along similar lines, correct an error, give a counter view, you provide a platform, give ample oxygen to chaps who are scared of angmos, fear angmos and and dare not come out of their wells. In this forum you are the biggest asset for them.

Do not respond, initiate anything where the usual suspects are concerned.

Till today I cannot understand why they are so scared of angmos but the fact that they keep posting along these lines in this forum tells you there is an irrational fear. I suspect that they suffer from inferiority complex or are unable compete with angmos.

Don't ever assume they are in the US or elsewhere which is developed. They probably are staying in Toa Payoh, pop down to eat Kway Chap and then hit the keyboard after midnight. Imagine one imbecile actually thought the guy was in the US based on a photo. If that is not the IQ of a moron, I do not what is.

By the way erroneous statements are deliberate to entice a reponse or reply to keep the thread alive. Its called trolling.

Sorry to be too harsh, but as I said, you are their biggest asset. Don't give the space, the reason, the oxygen or the time of day. Let them go back to their flat in the US (euphemism for Toa Payoh) and figure out what next. Hopefully it will be more imaginative.

[royarnekara]

Yes i agree, WW2 solved the great depression. there must be a WW3

i suggest either Nuking mecca or bombing kelings randomly. both are Pests.

So according to the Mayan calendar, the world will end on 21 12 2012. So could this be because of WW3????

[royarnekara]

Don't ever assume they are in the US or elsewhere which is developed. They probably are staying in Toa Payoh, pop down to eat Kway Chap and then hit the keyboard after midnight. Imagine one imbecile actually thought the guy was in the US based on a photo. If that is not the IQ of a moron, I do not what is.

By the way erroneous statements are deliberate to entice a reponse or reply to keep the thread alive. Its called trolling.

Sorry to be too harsh, but as I said, you are their biggest asset. Don't give the space, the reason, the oxygen or the time of day. Let them go back to their flat in the US (euphemism for Toa Payoh) and figure out what next. Hopefully it will be more imaginative.

At least you understand well what's going on. It is a well known fact that the loser cockroach posting under multiple nicks is actually sitting in Sinkeeland and based on his postings, it is very evident that he knows nuts about US, Oz or anywhere for that matter. The main reason for this loser cockroach to post under multiple nicks is because he is hired by the bankrupt PAP regime to discourage Singaporeans from moving to Australia. I'll be very suprised if any logical and rational person falls for his bullshits. I have placed all the loser cockroach's nicks under my ignore list and other than the once in a while irritation, I don't bother to respond to any of the rubbish posted. However, I have to agree that Neddy is doing a good job of irrirtating this cockroach to give him sleepless nights.

[priceyicey]

The whole of USA is bankrupt. The only way out of this is to declare WAR!!! Or create a WAR or manufacture a WAR!!!

This is what is frightening about USA. They need an enemy to gel the presidency.



HAPPY LUNAR NEW YEAR. Frugal living is the theme for 2009, but we continue to thrive in frugal living and re-discover the joy of simplicity.

[priceyicey]

As long as you respond along similar lines, correct an error, give a counter view, you provide a platform, give ample oxygen to chaps who are scared of angmos, fear angmos and and dare not come out of their wells. In this forum you are the biggest asset for them.

Do not respond, initiate anything where the usual suspects are concerned.

Till today I cannot understand why they are so scared of angmos but the fact that they keep posting along these lines in this forum tells you there is an irrational fear. I suspect that they suffer from inferiority complex or are unable compete with angmos.

Don't ever assume they are in the US or elsewhere which is developed. They probably are staying in Toa Payoh, pop down to eat Kway Chap and then hit the keyboard after midnight. Imagine one imbecile actually thought the guy was in the US based on a photo. If that is not the IQ of a moron, I do not what is.

By the way erroneous statements are deliberate to entice a reponse or reply to keep the thread alive. Its called trolling.

Sorry to be too harsh, but as I said, you are their biggest asset. Don't give the space, the reason, the oxygen or the time of day. Let them go back to their flat in the US (euphemism for Toa Payoh) and figure out what next. Hopefully it will be more imaginative.

Noted.

I think it will be in these peoples interest to realise that the angmos are just another overhyped "race".

For people like me who have thrown sub-standard reports by angmos at their feet, I know that once you hit them at their vulnerable spots, they are just normal humans. They gain a respect for ex-Singaporeans. Don't mess around with them.

USA
I have a genuine interest to see that the USA live up to their responsiblities.
To me, USA continue to support the PAP regime, which I am disappointed.
But my posts are directed at their systematic failure and even their denial of responsibilities of the implicit agreements when USD became the world's reserve currency.

As for this migration forum, I will tone down from now onwards.

[Blacksheepaalredy]

[QUOTE=Satan;159611]At least you understand well what's going on. It is a well known fact that the loser cockroach posting under multiple nicks is actually sitting in Sinkeeland and based on his postings, it is very evident that he QUOTE]

This has been going from inception. Rasmped since last year and I suspect more are quiting. To cover the gap in citizenship, they are handing over singapore citizenship hand over fist.

See the article on PR. More like Malaysia Cup ticket rush. Except for the Pacfic Island Nations, Singapore citizenship can be obtained in 1 year.

http://www.straitstimes.com/Breaking...ry_332928.html

Rush for PR status
More foreigners are applying for PR status for fear of losing their jobs during recession
By Cassandra Chew

A snaking queue formed outside the ICA building even before 8am on Jan 24. These people stood in line overnight just to get a queue number to have their PR applications processed. -- PHOTO: CAROLINE CHIA

SNAKING lines starting in the wee hours outside the Immigration and Checkpoints Authority (ICA) are now a common sight as more foreigners clamour for permanent residency here.

From as early as 11pm the night before, they start queueing at the entrance of Lavender MRT station. Hailing from countries like India, China, the Philippines, Malaysia and Myanmar, most are desperately vying for a spot in the permanent resident (PR) application processing queue.

By 3am on Jan 24, at least 10 individuals were already gathered there.

They laid out newspapers to lie on and sipped coffee from a nearby 24-hour coffee shop to stay awake. Several came with company so their friends could hold their spot while they took toilet breaks.

By 5.30am, the informal queue had swelled to about 60 people. As if in a group march, they collectively crossed the street from the MRT station to the official ICA queue post, which had just opened, in an orderly fashion.

By 8am, the line had snaked around ICA's Kallang Road building, with over 220 people in it.

A random poll of 20 people in the queue showed that 15 were there to apply for PR. Others were there for visa matters, like the renewal of long-term visit passes.

When ICA's doors opened at 8am, the PR hopefuls rushed into the building, scurrying into lifts or rushing up four flights of escalators to the fifth floor where the PR Services Centre is located.

Each time The Sunday Times visited on Jan 2, Jan 7 and Jan 24, all queue tickets for PR applicants were snapped up within 15 minutes.

Newspaper vendor Ye Yibin, 69, who has been manning a stall by the MRT station for five years, said the lines started growing longer about a year ago but have surged since last November. 'Before, there would be a few people at 6am, but now the lines are much longer. Many of them gather from 2am and use my stools,' she said.

Labour watchers say one reason for the desperation of these PR applicants is the recession. Foreigners who fear for their jobs are making a beeline to apply for PR so they can remain here in case they get axed.

Employment pass, S-pass and work permit holders can remain in Singapore for between seven and 14 days if they lose their jobs. Personalised employment pass holders can remain unemployed here for up to six months, while PRs can remain here until their five-year re-entry permit expires.

Nanyang Technological University economics professor Choy Keen Meng said: 'The rush makes sense because employment pass holders are at high risk of retrenchment during a recession. If they want to stick around, having a PR would mean they won't be repatriated.'

Most of those standing in line overnight know that PR applicants have the option of using ICA's e-appointment system to secure a spot in the processing queue, but they said the waiting time for e-appointments is too long.

A 44-year-old exhibitions manager, who would give his name only as Alan, had been waiting in line since 12.30am on Jan 7. The Singaporean said he visited ICA's e-appointment website after he failed to obtain a queue ticket on Jan 6, but found that the next available appointment was on March 10.

He was there to submit the PR application of his Vietnamese wife of nine years. Permanent residency would allow her to work and supplement their household income. A three-month wait would mean three months of income lost.

This was also why China national Lin Wenhai, 33, arrived at 11pm the day before to queue for his ticket.

'Having PR would give me a sense of security here, and would also enable me to bring my parents, wife and daughter in Fujian over,' said the factory worker who has been here for five years.

Mr Lin, like many others in line, left his family in search of a better future here, and hopes to be reunited with them soon.

In response to queries from The Sunday Times, ICA would only say that while there is no set limit to the number of queue tickets given out daily to PR applicants, limited resources mean it can only process a certain number of applications on any given day. This is why it places a limit on the number of applications it accepts each day.

The ICA spokesman added that the success of PR applications is not based on the timing of their submission, but that the applications are considered on individual merit. As of last October, Singapore has 478,200 PRs.

Since the e-appointment system's launch in March last year, ICA officers have periodically used tablet PCs to assist those in the queues with the online booking process.

'PR applicants are strongly encouraged to make use of the e-appointment system to book an available date that best suits their schedule and which assures minimal waiting time,' he said.

casschew@sph.com.sg

[Blacksheepaalredy]

Thanks for your understanding bro. Once he finishes his kwaychap for dinner , picks up his bread from NTUC fairprice, checks his POSB accounts for yesterday's pay, he will be busy writing cockcamamee articles between bouts of depression on why his PR application was rejected for the umpteen time. Thats when the US and Canadian fantasy stories starts appearing.

Noted.

I think it will be in these peoples interest to realise that the angmos are just another overhyped "race".

For people like me who have thrown sub-standard reports by angmos at their feet, I know that once you hit them at their vulnerable spots, they are just normal humans. They gain a respect for ex-Singaporeans. Don't mess around with them.

USA
I have a genuine interest to see that the USA live up to their responsiblities.
To me, USA continue to support the PAP regime, which I am disappointed.
But my posts are directed at their systematic failure and even their denial of responsibilities of the implicit agreements when USD became the world's reserve currency.

As for this migration forum, I will tone down from now onwards.