{"id":9362,"date":"2009-07-13T23:30:00","date_gmt":"2009-07-13T23:30:00","guid":{"rendered":""},"modified":"2009-07-13T23:23:44","modified_gmt":"2009-07-13T23:23:44","slug":"the-wsj-takes-a-look-at-regressive-taxation","status":"publish","type":"post","link":"https:\/\/calitics.com\/index.php\/2009\/07\/13\/the-wsj-takes-a-look-at-regressive-taxation\/","title":{"rendered":"The WSJ Takes A Look At Regressive Taxation"},"content":{"rendered":"<p>On Saturday Joe Mathews (who runs the excellent <a href=\"http:\/\/www.newamerica.net\/blog\/blockbuster_democracy\">Blockbuster Democracy<\/a> blog) had a very interesting article in the Wall Street Journal <a href=\"http:\/\/online.wsj.com\/article\/SB124726545081325435.html\">on Democratic and progressive reactions to the Parsky Commission proposals<\/a> that, except for &nbsp;the <a href=\"https:\/\/calitics.com\/diary\/9319\/fred-keeley-stands-up-for-working-californians\">Fred Keeley\/Chris Edley progressive proposals<\/a> would embrace an overtly regressive tax structure. Mathews included this quote from yours truly:<\/p>\n<blockquote><p>Robert Cruickshank, a contributing editor at the progressive blog Calitics, says of the commission&#8217;s expected recommendations: &#8220;Most progressives are not going to support these kind of regressive solutions. You would see a fight if the Democratic legislature made a move to do this.&#8221;<\/p><\/blockquote>\n<p>Mathews also quoted Rick Jacobs of the Courage Campaign (who is my boss; I&#8217;m also the Public Policy Director at the Courage Campaign):<\/p>\n<blockquote><p>But supporters of the commission&#8217;s proposals are likely to get a fair hearing. Frustration with the California status quo crosses all ideological lines. Even those who disagree with the commission&#8217;s thrust are glad to have something new to discuss. &#8220;I&#8217;m really glad they&#8217;re trying something,&#8221; said Rick Jacobs, chairman of the Courage Campaign, a progressive Internet network with more than 700,000 members. He argues that the existing state tax system is too regressive. &#8220;It&#8217;s important to push the discussion out.&#8221;<\/p><\/blockquote>\n<p>I want to go into more depth on both of these points. As with any article, one tells the reporter much more than shows up in print. First, on my quote. I said that to Mathews before word of the Keeley\/Edley effort to propose progressive solutions became known, but their efforts merely confirm the broader point, which is that progressives <strong>will never<\/strong> embrace regressive taxation as a &#8220;solution&#8221; to California&#8217;s budget mess.<\/p>\n<p><a href=\"http:\/\/www.cbp.org\/pdfs\/2009\/0902_Californias_Tax_System.pdf\">California&#8217;s tax system is <strong>already<\/strong> regressive<\/a> as the lowest 20% pay a much higher portion of their income in taxes than the wealthy. That has been a deliberate policy choice, going back to Prop 13. But it has never been discussed openly. (And I do wish it had been mentioned in the WSJ article.)<\/p>\n<p>Which is why the Parsky Commission, in its own way, is doing California a service. Instead of back-room deals that regressivize the tax structure without any public input, the commission has undertaken a very open process and is embracing the goals of letting the rich evade their responsibilities.<\/p>\n<p>In the end most Democrats and virtually all progressives will oppose any regressive tax proposals. It&#8217;s time we fixed the state&#8217;s tax structure, yes, but <a href=\"https:\/\/calitics.com\/diary\/8552\/using-volatility-to-produce-more-regressivity\">volatility isn&#8217;t actually a problem<\/a> &#8211; the regressive and too-low nature of taxation in CA is, and if the Parsky Commission leads to a discussion and proposals to progressivize the system, then it will have been a useful exercise indeed.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>On Saturday Joe Mathews (who runs the excellent <a href=\"http:\/\/www.newamerica.net\/blog\/blockbuster_democracy\">Blockbuster Democracy<\/a> blog) had a very interesting article in the Wall Street Journal <a href=\"http:\/\/online.wsj.com\/article\/SB124726545081325435.html\">on Democratic and progressive reactions to the Parsky Commission proposals<\/a> that, except for &nbsp;the <a href=\"https:\/\/calitics.com\/diary\/9319\/fred-keeley-stands-up-for-working-californians\">Fred Keeley\/Chris Edley progressive proposals<\/a> would embrace an overtly regressive tax structure. Mathews included this quote from yours truly:<\/p>\n<blockquote><p>Robert Cruickshank, a contributing editor at the progressive blog Calitics, says of the commission&#8217;s expected recommendations: &#8220;Most progressives are not going to support these kind of regressive solutions. You would see a fight if the Democratic legislature made a move to do this.&#8221;<\/p><\/blockquote>\n<p>Mathews also quoted Rick Jacobs of the Courage Campaign (who is my boss; I&#8217;m also the Public Policy Director at the Courage Campaign):<\/p>\n<blockquote><p>But supporters of the commission&#8217;s proposals are likely to get a fair hearing. Frustration with the California status quo crosses all ideological lines. Even those who disagree with the commission&#8217;s thrust are glad to have something new to discuss. &#8220;I&#8217;m really glad they&#8217;re trying something,&#8221; said Rick Jacobs, chairman of the Courage Campaign, a progressive Internet network with more than 700,000 members. He argues that the existing state tax system is too regressive. &#8220;It&#8217;s important to push the discussion out.&#8221;<\/p><\/blockquote>\n<p>I want to go into more depth on both of these points. As with any article, one tells the reporter much more than shows up in print. First, on my quote. I said that to Mathews before word of the Keeley\/Edley effort to propose progressive solutions became known, but their efforts merely confirm the broader point, which is that progressives <strong>will never<\/strong> embrace regressive taxation as a &#8220;solution&#8221; to California&#8217;s budget mess.<\/p>\n<p><a href=\"http:\/\/www.cbp.org\/pdfs\/2009\/0902_Californias_Tax_System.pdf\">California&#8217;s tax system is <strong>already<\/strong> regressive<\/a> as the lowest 20% pay a much higher portion of their income in taxes than the wealthy. That has been a deliberate policy choice, going back to Prop 13. But it has never been discussed openly. (And I do wish it had been mentioned in the WSJ article.)<\/p>\n<p>Which is why the Parsky Commission, in its own way, is doing California a service. Instead of back-room deals that regressivize the tax structure without any public input, the commission has undertaken a very open process and is embracing the goals of letting the rich evade their responsibilities.<\/p>\n<p>In the end most Democrats and virtually all progressives will oppose any regressive tax proposals. It&#8217;s time we fixed the state&#8217;s tax structure, yes, but <a href=\"https:\/\/calitics.com\/diary\/8552\/using-volatility-to-produce-more-regressivity\">volatility isn&#8217;t actually a problem<\/a> &#8211; the regressive and too-low nature of taxation in CA is, and if the Parsky Commission leads to a discussion and proposals to progressivize the system, then it will have been a useful exercise indeed.<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[117],"tags":[],"class_list":["post-9362","post","type-post","status-publish","format-standard","hentry","category-117"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack-related-posts":[],"jetpack_shortlink":"https:\/\/wp.me\/p6Pvhz-2r0","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/calitics.com\/index.php\/wp-json\/wp\/v2\/posts\/9362","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/calitics.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/calitics.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/calitics.com\/index.php\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/calitics.com\/index.php\/wp-json\/wp\/v2\/comments?post=9362"}],"version-history":[{"count":0,"href":"https:\/\/calitics.com\/index.php\/wp-json\/wp\/v2\/posts\/9362\/revisions"}],"wp:attachment":[{"href":"https:\/\/calitics.com\/index.php\/wp-json\/wp\/v2\/media?parent=9362"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/calitics.com\/index.php\/wp-json\/wp\/v2\/categories?post=9362"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/calitics.com\/index.php\/wp-json\/wp\/v2\/tags?post=9362"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}