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Issues : Taxes : Commercial Property Tax Increase? No Way!


Some big-name candidates for Governor of Calilfornia are looking for ways to increase taxes in order to solve our budget problems. But they're approaching the problem from the wrong point of view. We pay enough taxes in California. What we need instead is to grow our economy and spend our money more intelligently.

Last week, Arnold Schwarzenegger had one of his advisers launch a "trial balloon" about skewering Proposition 13, which limits residential property taxes. His scheme was this: If voters approve, then Arnold looks like a hero, because his campaign suggested it first. If the voters give it a thumbs down, as we rightfully did, Arnold can distance himself from the idea by saying his advisor was speaking independently. How pathetic: Can't Arnold make his own suggestions? Where's the courage and boldness that he claims to have? Why is he silent on an issue of such significance to Californians? Perhaps the Terminator is just a front for the unseen and unaccountable folks who are really running his campaign.

Next, Arianna Huffington tried to stick it to businesses by suggesting we raise taxes on commercial properties. Excuse me Arianna, since when are businesses the dumping ground for all our financial woes, and since when do businesses have unlimited supplies of cash that they can spend on taxes and fees whenever the politicians need a little extra walking around money?

I own a business that rents office space and employs people. If my landlord gets a big increase in his property tax, he's going to raise my rent. If my rent goes up, I'm going to have to forego hiring another employee in order to pay the increase. Arianna's suggestion will lead to increased unemployment and business stagnation in California!

So how do we fix our budget mess? Two ways:

(1) Stimulate the economy. An increased economy naturally generates increased tax income through property taxes, sales taxes, income taxes, and other fees and licenses. Instead of tax increases, we need tax incentives to get businesses to hire more workers, thus pumping more money directly into the economy. My campaign proposes a 6 month reprieve of state income taxes for all rehired workers who are currently receiving unemployment benefits. By reducing the total compensation burden to employers, we will entice businesses to hire more people and reduce state unemployment payouts at the same time.

(2) Spend our tax revenue more efficiently! How come no one is talking about this? Examples of waste and inefficiency are all around us: Why does it cost $60 million to widen two miles of highway 880? And why is the city of San Mateo spending $65 million to build a new library? That's $700 per square foot and $260 per book! What are they building, the Taj Mahal? For that money we could just give a free lifetime supply of books to all the library visitors. One of the reasons they use to justify the new library is that the stairs are "difficult to find" and "unattractive". Well in that case $65 million sounds like a bargain to me.

Our candidates need to get smart about taxation and the economy. And our state and local elected officials need to get smart about their public building projects. These projects are supposed to serve the needs of the citizens AND be affordable. We shouldn't give our politicians blank checks to pay for extravagant projects just so they can put another feather in their cap and another line on their resume. Grow the economy, and stop the wasteful spending. Then our budget will fall into line.