Libertarians Say Taxpayers and Economic Freedom in California Will Take Another Hit Tomorrow

The Upcoming Sales Tax Increase Demonstrates That Democrats and Republicans are Eager to Overspend, Overtax and Overregulate the State Into Oblivion


PANORAMA CITY, Calif., March 31, 2009 (GLOBE NEWSWIRE) -- Tomorrow is April 1st, the day the sales tax rate in California will increase another 1 percent. State officials estimate that this and other tax increases will remove an additional $12.5 billion from taxpayers' wallets through July 1, 2011. If voters approve Proposition 1A on May 19, the tax increase will remain in effect until at least July 1, 2012 and the financial hit to taxpayers could reach $16 billion, according to the nonpartisan Legislative Analyst's Office.

Moreover, a study issued last month by the Mercatus Center at George Mason University (http://www.mercatus.org/) in Virginia analyzed personal and economic freedom in the 50 states. Unsurprisingly, California ranked near the bottom in most categories, including 44th in fiscal policy, 46th in regulatory policy and 48th in economic freedom. The study was conducted before increases in the sales tax, income tax, vehicle license fees and other taxes were approved. Data used to create the rankings are available online at www.statepolicyindex.com.

The Libertarian Party of California formally opposes any tax increase to close the budget deficit, which was created by the Democrats and Republicans in the Legislature and governor's office.

"Thanks to the Democrats and Republicans in Sacramento, Californians can look forward to having two tax days this April," said Kevin Takenaga, chair of the Libertarian Party of California. "Tomorrow's increase will not help retail sales at the mall. It will not help struggling car dealerships. It will only make it harder for small businesses to survive in California."

Soon after devising a scheme to close a $42 billion budget deficit, lawmakers announced the state could be facing an additional $14 billion budget deficit if Prop. 1A and other measures on the May 19 ballot fail to pass. These numbers come even after Gov. Schwarzenegger signed a series of bills on Friday that will allow California to receive about $17.5 billion from federal fiscal stimulus aid.

"Putting the eighth-largest economy in the world on the verge of asking for perpetual handouts from the federal government is not the mark of good public policy," Takenaga said. "Yet for years we've heard that the so-called leaders in Sacramento are the only people who can implement good public policy. Clearly, they have failed."

Proponents of the new taxes stress that the increase is only temporary. But that could easily change. The California secretary of state announced that the California Teachers Association has proposed a measure to amend the state Constitution and make the 1 percent tax increase a permanent statute.

"April 1st is commonly known as April Fool's Day. Although the sales tax increase due to begin tomorrow has a sunset, we know that politicians have never met a temporary tax that they didn't want to make permanent," Takenaga said. "We have an opportunity in the next election cycle to replace those who think all California taxpayers are fools.

"In the next year, the Libertarian Party of California will recruit as many candidates as we can to challenge the 100 club in Sacramento, as 80 assembly members and 20 state senators will be up for election. The people of California will have an opportunity to send a message that they want saner budgets, realistic public policy goals, and an end to the constant social engineering that has made our state one of worst run and least free states in the nation."

About the Libertarian Party of California

The Libertarian Party is America's third largest political party, founded in 1971 as an alternative to the two main political parties. The Libertarian Party of California fields candidates at the local, state, and federal level each election cycle. It also publishes the weekly Libertarian Perspective, an op-ed column authored by writers who strongly believe in freedom and individual liberty. Libertarians are socially tolerant and fiscally responsible, believe in personal freedom in both social and economic spheres, and in government small enough to protect those freedoms. For more information, visit www.ca.lp.org.


            

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