Unions, Activists Proposed Taxes Could Loosen Brown's Budget Grip | Financial Buzz

Unions, Activists Proposed Taxes Could Loosen Brown’s Budget Grip

Governor Jerry Brown of California has long been used to bend both lawmakers and voters so that they act in a manner to his liking, like passing temporary tax hikes and throwing out new spending programs. However, this is about to change.

Change in town

Governor Brown’s iron grip on budget could soon be loosened due to a number of tax related proposals, a few backed by rich benefactors or powerful interest groups. Grass root organizers and unions are cogitating over a series of proposals, over the objections of Brown on whether to extend the increased taxes which the governor cajoled voters to accommodate in 2012. There is also a latent proposal to change California’s signature property tax restrictions. If this is done, more revenue can be collected from commercial interests. 

These proposals are concerned with saving the state’s economy. California, on the contrary, is surging on the economic front, with a robust stock market and a rebounding economy. Instead, they are making attempts to acquire new funding and go with a political agenda. There is also an attempt to protect the state against future recessions. The list of new endeavors include efforts by Tom Steyer, the billionaire environmentalist, to pressure the state for future tax on oil extraction and also a trouble inducing bid to revamp the tax code of the state by Senator Bob Hertzberg, a Democrat from Van Nuys

Expert player

From the time in 2011, when he assumed the governor’s post. Brown managed to sidestep any tax increases he did not propose. The Legislature killed a lot of taxes, including levies on bullet, soda and tobacco. Even strip clubs did not see their tax being increased. Although the bill raised by Hertzberg could meet an identical fate, quite a number of diverse proposals could finish on the ballot to be held on November 2016 in case its supporters collect a sufficient number of petition signatures. This will permit them to avoid any vento by Brown and leaving the concerned issue in the mercurial hands of the voters. An increase in taxes generally receive an unfavorable response at ballot boxes.

However, the presidential election looms in 2016, and this is the election where voters turn out, especially the low income or minority and the young voters. This demography stands to profit the most from greater government spending. Advocates for various proposals are already creating focus groups and polling voters to tweak potential proposal details.