C O M M E N T A R Y

October 24, 2003

"Blank Check Initiative" Adds up to Higher Taxes and Less Government Accountability

Californians will vote next March on an initiative that's being sold as the "Budget Accountability Act." It's too bad proponents of the initiative can't be sued for false advertising, because what the initiative should really be called is the "Blank Check Initiative."

Indeed, accountability is the right medicine for California's fiscal woes. But when you peel off the sugarcoating from this initiative, California taxpayers will find what's left is a bitter pill that they have to swallow. At the heart of this measure is the elimination of the two-thirds vote of the Legislature required to raise taxes.

This "Blank Check Initiative" will make it easier -- much easier -- for politicians in Sacramento to raise taxes. It does away with the staunchest protection that we as taxpayers have: the basic requirement that in order to raise taxes, to impose new taxes, or to spend our tax dollars, the Legislature must have a two-thirds vote.

Admittedly, the sugarcoating of this measure looks pretty good -- like the penalties handed down to legislators for not passing a budget on time. But don't be confused - it is merely eye candy. However, as with every initiative, it's an all-or-nothing proposition -- and this measure's REAL agenda is to open up taxpayers' wallets.

Of course, the proponents of the Blank Check Initiative won't tell you that. They will talk about their initiative without mentioning tax increases. They've already buried that provision in the middle of the initiative and written it in government-speak to confuse the taxpayer! But make no mistake -- the blank check you will pay, the bill you will foot is there.

That is why the California Chamber of Commerce and many local chambers; the California Taxpayers' Association; California Business Alliance; California Farm Bureau Federation; California Manufacturers & Technology Association; California Government Accountability Council; and the largest coalition of taxpayer groups ever in California all oppose the Blank Check Initiative.

To put this "license to tax" in perspective, here are some quick tax facts:

• Californians already pay $130 billion a year in state and local taxes
• California's sales tax is one of the highest in the nation
• California has the highest overall tax burden of all the Western states, which is why businesses and people are leaving in droves
• Legislators proposed more than 100 different tax and fee hikes, totaling nearly $65 billion

Simply put, our economy is still struggling. Taxes are already high. An initiative that makes it easier to raise taxes even higher is the wrong medicine, bad for this state and bad for taxpayers. On the March ballot, vote no on the Blank Check Initiative. To find out how you can help stop the Blank Check, call Californians Against Higher Taxes at 310-996-2678 or check them out online at www.noblankchecks.com.