Yacht Party Follies

UPDATE by Julia: Watch the video on the Yacht Party.

UPDATE by Robert: Arnold’s now getting in on the follies – the SacBee reports he said he agreed with Elizabeth Hill’s call to close $2.7 billion in tax expenditures but then backtracked a little while later.

Judy Lin at the SacBee took a look at the Yacht Party’s bankrupt arguments about how we simply have to enable tax evasion or poor people are going to starve.

“The immigrant who sprays fiberglass on a boat will lose his job. The small-business owner who installs avionics on an airplane will lose his business,” state Sen. Dennis Hollingsworth of Temecula told GOP members during a Feb. 15 floor debate. “Those are the people who are going to be affected by this. It’s not the rich.”

You know, never does a day go by that the Yacht Party doesn’t show its deep respect and concern for immigrants.  Somehow, though, I have the sneaking suspicion that they’re being, what do I call it, completely disingenuous.  The Legislative Analyst has correctly described this as tax evasion, the Governor has correctly described this as tax evasion, even the TAX EVADERS have correctly described this as legalized tax evasion.

Chuck Lenert, 57, of Sacramento saved nearly $30,000 in taxes when he bought a used 58-foot Kha Shing motorboat near Victoria, Canada, three years ago. It came with a docking slip in Canada, he said, so it was cheaper to leave it there and pay an attorney $2,500 to ensure his tax status was in order with the state.

“I was just following the rules of the state of California, so why should I pay sales tax?” Lenert said. “I wasn’t trying to do anything but follow the law.”

For a year, Lenert, who sells hardware for a living, would travel every few weeks with his family and friends and take the $376,000 vessel, named Knots and Bolts, around the waters off Vancouver Island to catch crabs, salmon, oysters and shrimp. After a year, he moved the boat to Washington state.

“I would say that the 90-day guys are more cheaters,” said Lenert, who has since brought the boat down to Sacramento. “I had a bona fide use.”

Not that it should even be a question, but contrary to the Yacht Party’s protestations, actually making yacht owners pay their sales tax would have no material effect on sales whatsoever.

The analyst’s report found that a longer exemption period had little impact on manufacturers and sellers because their products sell nationwide.

Tim DeMartini, owner of DeMartini RV in Grass Valley, said the length of the exemption doesn’t affect his business because two-thirds of his orders come from outside California. The average 40-foot big diesel, he said, sells for $150,000.

“It won’t make that much difference to us,” DeMartini said, adding that the impact might be greater for the buyer.

Due to this “conflicting” information, Yacht Party members are just so gosh darn confused about the issue that they’d rather just walk away from it, which has the added benefit of, you know, saving Commodore Ackerman’s yacht tax.

“I haven’t been able to conclude which argument makes the most sense,” said Assemblyman Roger Niello, R-Fair Oaks, who abstained from the vote.

As for Dan Walters’ predictable media “he said, she said” argument, I think there’s a slight difference between yacht owners avoiding sales tax and income tax credits for children for working-class families.  Call me nuts.

Reflections On Corporations II – Corporate Philanthropy

Who should decide whether our communities have museums, concert and dance facilities, parks and other cultural programs?  Who should decide on priorities for funding for disaster assistance or research into cures for diseases?  

Should the public make the bulk of these decisions, through the transparent and accountable systems of our democracy?  Or should a few individuals who control vast wealth and resources make these decisions for the people?

Because of dwindling tax revenues many communities have come to rely on “corporate philanthropy” for assistance with cultural programs, or to supplement their schools, or for other community benefits.  

The people who run corporations are in a position to decide to donate the corporation’s money to various causes.  Many of these are things that the people, through our government, no longer have the resources to support.  For example, the executives and Board of a corporation might decide to donate to build a museum.  They might decide to fund a school.  

And they might decide not to do these things.  

So look at what is happening — as discussed in the Feb. 26 post, Reflecting on Corporations, we have corporations using their resources to influence the public and government to change the rules of the playing field on which corporations operate – deregulating, lowering taxes, etc.  As this corporate influence brings cuts in corporate taxes (as well as cuts in taxes paid by the owners of the corporations), our society is left with fewer public resources for building museums, conducting research, etc.  

And then we have corporations stepping in, using some of their earnings to provide those benefits, with their executives deciding where to direct the resources.  For which the public is supposed to be grateful, and feel more favorable to the corporations, and perhaps grant them further benefits.

These are functions that the public once prioritized and controlled.  But today the balance of control of the country’s resources continues to shift more and more to fewer private individuals.  This massing of assets and resources into corporate hands takes away the people’s ability to decide to build museums and fund schools.  It puts more and more power to make decisions that affect the public into the hands of corporate executives.  Is this compatible with our understanding of democracy?

And a related question:  Should corporate earnings be diverted from the shareholders?  Is it the proper function of corporations to make decisions about funding museums, etc?

Perhaps there should be controls that guarantee that corporate funds and resources are used solely for the benefit of the shareholders and broader pubic interest.  Perhaps corporations should be prohibited from engaging in any activities that influence our government or lawmaking or public opinion.  Perhaps they should operate on the playing field that We, the People lay out for them — and not be able to influence that playing field for the benefit of a few individuals who control the corporation.  

Perhaps.

Matt Gonzalez Quits Politics, Runs with Nader as Vice Presidential Candidate

UPDATE: Mayor Newsom has some thoughts about Matt Gonzalez on the Nader ticket over at the Big Orange. It’s worth a read, and perhaps a rec so others will get a chance to read it as well.

I made no mistake there, I mean that by running with Nader, Gonzalez has transitioned from feasible candidate to somebody shouting from the sidelines.  BeyondChron has the news:

At 9:00 a.m. Pacific Standard Time today, presidential candidate Ralph Nader will announce his running mate at a Washington DC press conference. BeyondChron has learned that it will be former San Francisco Supervisor and Board President Matt Gonzalez.

The previous day, Gonzalez had written a BeyondChron editorial about Barack Obama that harshly criticized the junior Senator from Illinois for not actually being that progressive.

But his record suggests that he is incapable of ushering in any kind of change I’d like to see. It is one of accommodation and concession to the very political powers that we need to reign in and oppose if we are to make truly lasting advances.

He goes on to recount some of Obama’s more troubling positions on class action and tort deform, where he enabled the Bush administration to plunder the rights of consumers and working Americans for the protection of corporations, on the plundering of our environment by mining corporations.

As for me, I am under no illusions that Obama was the progressive choice.  Clearly Kucinich was the best for that, but Chris Dodd and John Edwards were clearly to the left of Obama. I understood that and hoped that Edwards would squeak by with a win in Iowa. But once it become clear that Senator Obama was building a grassroots infrastructure that could be leveraged to produce long-term electoral strength, I knew that he should be the nominee.

Look, Obama isn’t perfect, and neither are any of the Democrats. I mean, you needn’t look any further than the front page of today’s Chronicle to see where the Dems are giving away money meant for WIC and Food Stamps to agribusiness giants like ADM. But as this movement grows, truly “we are the change we’ve been waiting for.”

Gonzalez acknowledges this in his post, that this movement is something special. But, this movement is not about any candidate. It’s been growing for a while, and Obama, like Dean before him, has only ridden the tidal wave of support for a new progressive agenda built from leadership from the grassroots on up. We have been bruised by the current administration, and while this might be a smaller step than we would have liked, it’s clearly a step in the right direction.

UPDATE: AP has it now too.

Karen Bass To Become Speaker of the Assembly

According to Capitol Weekly, it’s a done deal.

Assemblywoman Karen Bass captured the speakership Wednesday night to replace Speaker Fabian Nunez following a round of closed-door meetings.

Bass, a Los Angeles Democrat and the Assembly’s majority leader, received a majority of support in the Democratic caucus to win the job. Nunez engineered the deal that put her over the top. Several legislators, including some who had hoped to be speaker themselves, announced as they left the meeting that  Bass had won.

“She’s got it,” said Assemblyman Hector de la Torre, D-Southgate, after the final meeting.

Other than a brief few months during the post-Prop. 93 Willie Brown fallout, Bass will be the first female Speaker of the Assembly, and the first Democratic woman overall.  She becomes the 3rd African-American, and the 1st African-American woman.  2008 continues to be a year of firsts.

I also think that Bass and Darrell Steinberg well make an excellent leadership team, though it’ll be somewhat short-lived, as Bass is termed out in 2010.  I can’t think of many better combinations than this.

Bass-O-Matic

This evening, Assembly Majority Leader Karen Bass was elected Speaker of the Assembly. Bass, who I believe is the first African American woman elected to this position, will succeed termed-out Fabian Núñez.

Assemblywoman Bass represents the 47th Assembly District – the cities and communities of Culver City, West Los Angeles, Westwood, Cheviot Hills, Leimert Park, Baldwin Hills, Windsor Hills, Ladera Heights, the Crenshaw District, Little Ethiopia and portions of Korea Town and South Los Angeles.



cross-posted at TheLiberalOC.com

EPA Staff Enlisted Former EPA Chief to Lobby Current Leader on Tailpipe Waiver

Sen. Barbara Boxer’s digging into documents on the decision by the EPA not to issue a waiver to California so we can regulate tailpipe emissions is bearing some serious fruit.  The EPA staff went to great lengths to try and persuade the Bush lacky Steven L. Johnson not to overrule them and precedent and deny California the right to reduce greenhouse gases in our state.  LAT:

Some officials at the Environmental Protection Agency were so worried their boss would deny California permission to implement its own global-warming law that they worked with a former EPA chief to try to persuade the current administrator to grant the state’s request.

That unusual effort was revealed by documents released Tuesday by congressional investigators probing whether EPA Administrator Stephen L. Johnson was swayed by political pressure when he decided not to allow California to enact vehicle emission standards stricter than the federal government’s.

They actually even supplied him with talking points to lobby Johnson with. (flip it)

One of the newly released documents features “talking points” prepared by an agency staff member for former EPA Administrator William K. Reilly to help him build the case for granting California’s request. In the October 2007 memo, the staffer said there was “no legal or technical justification” for the EPA to deny the request. If the agency refused California permission to implement its tailpipe law, the document said, “the credibility of the agency . . . will be irreparably damaged.”

Johnson acted as the Bush Administration’s lapdog.  He dragged out the process as long as possible and then overruled his own staff to deny California the waiver.  Both his legal and scientific advisors urged him to grant our waiver.  The denial was first time the EPA has ever denied a state a waiver under the Clean Air Act.

Unfortunately, we have little recourse until there is a Democrat in the White House.  Court cases to the best of my knowledge are proceeding, but that is a long term process, given the likelihood of appeals.