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The San Francisco Chronicle met with the four major Democratic candidates for governor this week to talk about the “state’s big issues” and whether they “have the ideas and resolve to meet them.” Moderated by Chronicle editorial page editor, John Diaz, it seemed that the four candidates believe that dealing with the “big issues” will require spending a lot more money. Spending more for K-12 education, colleges, homelessness, the state’s housing shortage and, most expensively, universal health care. Where will the funds come from to address these expanding programs? The four generally agreed that the state’s current tax system is out of whack. The state budget is already too dependent on volatile taxes from a relative handful of high-income Californians? Here is a summary of their responses, with no specifics offered by the candidates. “We know what needs to be done,” Lt. Gov. Gavin Newsom offered, without saying what that may be. Treasurer John Chiang called for a “better balance among the three major streams (of taxes).” Antonio Villaraigosa, the former mayor of Los Angeles, who said he would “approach it (tax reform) comprehensively…” But again with no specifics. Former state schools Supt. Delaine Eastin, who declared flatly, “It is time to revise Proposition 13.” She suggested - what unions and other groups have been seeking ever since Proposition 13 was passed nearly 40 years ago - a “split roll” that would, in theory, maintain the measure’s benefits for residential property but allow property taxes on commercial property to rise. What is a simple definition of ‘split roll tax? A taxation under which real-estate taxes on business and industrial buildings are levied at higher rates than on residential homes. It would take a ballot measure to change Proposition 13, which is part of the state constitution. According to supporters of a split roll tax, it would generate billions of dollars more in revenue for local governments and schools and relieve pressure on the state budget, which provides most of the education financing now. However, a split property tax system probably would not come close to providing the tens of billions of dollars, or even hundreds of billions of dollars, that would be required to finance the candidates’ to-do lists. Californians’ tax burden is already one of the nation’s highest, as a percentage of personal income. That was especially evident when it came to universal health care, which is the most burning Democratic Party issue these days because of the internal divide within. All Democratic candidates are in favor of it, conceptually, with Newsom and Eastin most vocal in offering their positions. Villaraigosa and Chiang were more elusive, citing the high cost of expanding health care coverage to as many as 3 million Californians who do not have coverage. “We can’t cover everything,” Treasurer Chiang offered. “You can’t sign something like that without a plan,” former LA Mayor Villaraigosa said. The Chronicle’s effort to have them respond to major issues — even though water and poverty were not on the list - is the starting point of further gubernatorial debates. We will see if other non-Democratic candidates start to make waves by providing ‘opposite points’ of view than the four Democratic leading candidates. As noted in previous eNews reports, next year can be a pivotal political year - stay tuned as local issues will slowly bubble up in the months ahead but the tone of 2018 campaign cycle will be set by the top of the ballot candidates.
The San Francisco Chronicle met with the four major Democratic candidates for governor this week to talk about the “state’s big issues” and whether they “have the ideas and resolve to meet them.”
Moderated by Chronicle editorial page editor, John Diaz, it seemed that the four candidates believe that dealing with the “big issues” will require spending a lot more money. Spending more for K-12 education, colleges, homelessness, the state’s housing shortage and, most expensively, universal health care. Where will the funds come from to address these expanding programs? The four generally agreed that the state’s current tax system is out of whack. The state budget is already too dependent on volatile taxes from a relative handful of high-income Californians?
Here is a summary of their responses, with no specifics offered by the candidates.
“We know what needs to be done,” Lt. Gov. Gavin Newsom offered, without saying what that may be. Treasurer John Chiang called for a “better balance among the three major streams (of taxes).” Antonio Villaraigosa, the former mayor of Los Angeles, who said he would “approach it (tax reform) comprehensively…” But again with no specifics.
Former state schools Supt. Delaine Eastin, who declared flatly, “It is time to revise Proposition 13.” She suggested - what unions and other groups have been seeking ever since Proposition 13 was passed nearly 40 years ago - a “split roll” that would, in theory, maintain the measure’s benefits for residential property but allow property taxes on commercial property to rise.
What is a simple definition of ‘split roll tax? A taxation under which real-estate taxes on business and industrial buildings are levied at higher rates than on residential homes.
It would take a ballot measure to change Proposition 13, which is part of the state constitution. According to supporters of a split roll tax, it would generate billions of dollars more in revenue for local governments and schools and relieve pressure on the state budget, which provides most of the education financing now.
However, a split property tax system probably would not come close to providing the tens of billions of dollars, or even hundreds of billions of dollars, that would be required to finance the candidates’ to-do lists. Californians’ tax burden is already one of the nation’s highest, as a percentage of personal income. That was especially evident when it came to universal health care, which is the most burning Democratic Party issue these days because of the internal divide within.
All Democratic candidates are in favor of it, conceptually, with Newsom and Eastin most vocal in offering their positions. Villaraigosa and Chiang were more elusive, citing the high cost of expanding health care coverage to as many as 3 million Californians who do not have coverage. “We can’t cover everything,” Treasurer Chiang offered. “You can’t sign something like that without a plan,” former LA Mayor Villaraigosa said.
The Chronicle’s effort to have them respond to major issues — even though water and poverty were not on the list - is the starting point of further gubernatorial debates. We will see if other non-Democratic candidates start to make waves by providing ‘opposite points’ of view than the four Democratic leading candidates.
As noted in previous eNews reports, next year can be a pivotal political year - stay tuned as local issues will slowly bubble up in the months ahead but the tone of 2018 campaign cycle will be set by the top of the ballot candidates.