CalWatchdog Morning Read – April 14, 2016

Matt Fleming — Thu, 14 Apr 2016 15:32:49 +0000

CalWatchdog Morning Read – April 14, 2016

By CalWatchdog Staff

Good morning everyone, and goodbye Kobe Bryant, who scored 60 points last night in his final game as a Los Angeles Laker and a professional basketball player, capping a 20-year career.

As the Lakers’ great fades away into the night, we also say goodbye to a bill that would have shifted the costs of most special elections away from the taxpayers and onto the outgoing legislator. The bill, sponsored by Asm. Jim Patterson, R-Fresno, died in committee on Wednesday because it was too “onerous” on the individual, opponents said.

Since 2013, counties have spent around $21.7 million on special elections, according to a recent investigation by CalWatchdog. That includes more than $500,000 from an election last week in Fresno County to replace former assemblyman Henry T. Perea, a Fresno Democrat who stepped down late last year to take a position with the pharmaceutical industry.

The bill would have forced outgoing lawmakers in most instances to use leftover campaign funds to help counties with election-cost burdens. Perea still has more than $800,000 in his campaign account.

CalWatchdog has more.

In other news:

– As housing prices in the Golden State continue to rise and price out the average person, lawmakers are doing little to increase affordable housing. “Even those who have authored the handful of bills aimed at increasing the number of homes in the state concede their efforts only scratch the surface of the problem,” reports the Los Angeles Times.

– UC Davis paid consultants at least $175,000 to scrub the Internet of negative online postings about the 2011 pepper-spraying of students, to improve the reputations of both the university and Chancellor Linda P.B. Katehi, reports The Sacramento Bee.

– Experts say that while El Niño conditions are weakening, El Niña appears to be on its way, which has generally increased the chances of drier-than-normal weather, reports The San Jose Mercury News. At the same time, the recent El Niño rainy season has eased Californians’ concerns about the drought, “though large majorities remain deeply concerned about ongoing water shortages and committed to consuming less,” reports The Sacramento Bee.

– A state senator is pushing a bill that would pave the way for undocumented immigrants to purchase health insurance through Covered California, the state’s health care exchange, reports the Los Angeles Times.

Basketball bonus (Hey, it was a big night): The Golden State Warriors set a single-season record with their 73rd victory, reports the San Francisco Chronicle.

Assembly:

– In at 9.

Senate:

– In at 9, full slate of budget hearings.

Gov. Brown:

– No public events scheduled.

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High state income taxes once again haunt a California NBA team

Chris Reed — Fri, 18 Oct 2013 13:00:42 +0000

In July, fans of the Los Angeles Lakers took a kick to stomach when free agent Dwight Howard, arguably the league's best center, signed a four-year, $88 million contract with the Houston Rockets for $30 million less guaranteed money than he was offered in a five-year deal to stay with the Lakers. On Cal Watchdog, I broke down how California's extremely high state income tax on high earners made it completely understandable as to why Howard would bolt for Texas.

The key is a recent development that San Diego small-government activist Richard Rider detailed in the Wall Street Journal:

“Until 2013, state income taxes were deductible for federal income tax purposes. Starting in 2013, for the really rich, this deductibility largely goes away (as does deducting property taxes and many other deductions). For people with over $2 million of income, they lose 80% of such deductions.

“With Proposition 30 passed in November, CA has raised its income tax on the wealthy by 29%. The combined tax increase is breathtaking. Do the math, and you find that in 2011 the net CA income tax for [very high earners] was 6.7%. In 2013 [their] CA income tax is 12.3% — an increase of 83.6%.”

Another star center may flee Golden State

Now it longs like one more former all-star center may flee the Golden State over taxes — specifically the Golden State Warriors.

Aussie Andrew Bogut, who will be a free agent after this season, is being courted by several teams. And while he says he loves living in the Bay Area, he also says, “California state tax plays a big part in things.”

Proposition 30's increase in sales and income taxes was approved by voters in November 2012 who bought the absurd idea that Californians are undertaxed. Dwight Howard and Andrew Bogut don't agree.

As the payroll clerk said in “Raising Arizona,” “The government do take a bite, don't she?” But in California, if you're a high earner, it's both the state and federal government taking big bites.

Golden State Warriors – CalWatchdog.com

CalWatchdog Morning Read – April 14, 2016