Beware of California’s Obscene Budget Surplus
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By Jon Coupal, President of the Howard Jarvis Taxpayers Association (HJTA) and a recognized expert in California fiscal affairs and has argued numerous tax cases before the courts.
Here’s a cautionary tale for California politicians who think voters will forever tolerate rising taxes as Sacramento swims in budget surpluses. In 1978, virtually every political institution in California opposed Proposition 13, including big business, labor, local governments, and education advocates. Then voters stunned the elite political class by enacting the iconic tax-cutting initiative, a constitutional amendment that legislators couldn’t touch, by nearly a two-thirds vote. The passage of Proposition 13 was driven by both fear and anger. The fear that motivated voters to the polls is easy to understand. Although unthinkable today — thanks to the security provided by Prop. 13 — in the mid-70s' homeowners were literally being driven out of their homes by high property taxes. Howard Jarvis himself witnessed a despondent widow plead her case at the public counter in the L.A. County Assessor’s office where, regrettably, she collapsed and died of a heart attack.
The terrible fear of losing one’s home, even if the mortgage had been fully paid, was matched only by anger. If citizens believe today’s political environment is divisive, it was more so leading up to the election in June of 1978. Even those who cared little for politics rose up in rage after opening their annual property tax bills.
Part of that anger was driven by Governor Jerry Brown’s admission that California was sitting on a massive surplus. It was so large that California’s treasurer at the time, Jesse Unruh, labeled it as “obscene.” To Californians, the sight of government sitting on wads of cash while homeowners were losing their homes due to excessive taxation was just more gasoline on the fire.
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https://www.sgvtribune.com/2021/12/12/beware-of-californias-obscene-budget-surplus/
