Long considered the nation's lunatic asylum, run by the inmates
to boot, Californians actually practiced a little common sense in
the recent election. True, they once again supported the Democrat
candidate for the presidency, but at the state level they did some-
thing astonishing which no one thought they would do: they said
"no" --- in a loud and unmistakable voice --- to some of their
political masters. They rejected a referendum which would have
allowed racial preferences in state hiring and college admissions,
eschewed a huge business property tax hike, and rescued tens of
thousands of "gig economy" jobs, i.e. drivers for Uber and Lyft.
Robert Ripley, call your office.
California's 42-year-old Proposition 13 caps taxes on commercial
and residential property at 1% of their assessed value, and limits
annual increases to 2%. Left-wingers, especially the public unions,
have wanted all these years to do away with it; looks like they will
have to wait for some more years to fulfill their cherished dream.
The unions claimed that the tax increase was necessary to support
education and public safety, even though progressives promoted
deep cuts to law enforcement, and to make big corporations pay
--- here comes that old familiar song! --- their "fair share". Well,
the lefties put up Proposition 15, which would have required that
commercial property be reassessed at market value every three
years at the very least. The initiative was to jack up property taxes
by $8 billion to 12.5 billion annually by 2025. Notice that they
didn't go after residential property taxes, as they thought that they
would bypass angering homeowners and instead go after the
big businesses, always a popular political idea with those who
don't realize that all taxes and tax increases on businesses are
always passed on to consumers in the form of higher prices for
their goods and services. Well, enough Californians apparently
do realize this economic fact because they defeated the measure
by 3.6%. Most non-coastal counties refused Prop. 15 by 20 or
more points.
Californians weren't through yet though, approving by a margin of
58.5% to 41.5% Proposition 22, which will exempt gig workers
such as Uber drivers, GrubHub takeout delivery people, and
Instacart shoppers from California's union-backed AB5 law,
which reclassified thousands of independent contractors,
gig workers and all, as employees. The referendum also
required that companies provide health insurance subsidies
as well as occupational accident coverage, taking away a union
argument that Prop. 22 would enable firms like Uber to skirt
workplace protections (i.e. not provide the aforementioned
occupational accident coverage)
California, in summation, may now be willing to rethink living
with an all-pervasive state government which, among other
things, stifles business initiative and innovation and economic
growth as well as a broad and open playing field for job seekers
and college student hopefuls. They still don't seem ready for
giving up one-party rule in their state but give them time.
Once people get a taste of the less regulated, less mandated
life they'll find it so sweet that they'll want more, to the
consternation of the grandees in Sacramento.
MEM
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