Tax-Free Yachts.

[Dinner]

Originally posted by DinoDoc
There's a simple solution to this problem, Oerdin. CA could get rid of the Balanced Budget requirement which would get rid of the need to make cuts.

There isn't a balanced budget requirement. It's just that to borrow money requires 2/3rds, to raise taxes requires 2/3rds, but to cut the budget only requires a simple majority. That means that if you can band together 1/3 then you can force cuts by not authorizing borrowing and blocking all tax increases.

It is a recipee for disaster where special interests rule as you can see in this case. The obstructionists have seen to it that every budget in the pasty 30 years has been late and government shut downs are a yearly event. Is it any wonder Californians hate repugs?

[Kidlicious]

If you want to count higher education it's close to half.

[Dinner]

Re: Re: Re: Re: Re: Tax-Free Yachts.

Originally posted by Kidicious


Education is about a third of the budget. You see you couldn't balance the budget either. It's much easier just to complain.

By law 40% of the general fund must go to education. The people got tired of politicians playing games with education and decided to strip them of the ability to cut it below that amount. The problem is the economy has been declining for some time down due to the house bubble, a bubble which the current President tried very hard to make back in 2002-2004, this means tax revenue is down a lot so the option is to borrow, cut else where, cut education, or raise taxes.

Closing the sloophole would have been the best way to get the $2 billion. Instead Repugs once again **** on kids.

[Kidlicious]

Re: Re: Re: Re: Re: Re: Tax-Free Yachts.

Originally posted by Oerdin
By law 40% of the general fund must go to education. The people got tired of politicians playing games with education and decided to strip them of the ability to cut it below that amount.

Well it's barely that. But if you can't cut the biggest expenditure you aren't going to cut overall spending much.

[DinoDoc]

I propose a tax on 48 inch pizzas.

PS

Closing the sloophole would have been the best way to get the $2 billion.

Liar.

[Kuciwalker]

Billions of dollars worth of yachts are bought in CA each year?

[MarkG]

Originally posted by Kuciwalker
Billions of dollars worth of yachts are bought in CA each year?

28.57$ billion to be exact!

[Lancer]

You can get a yacht cheaper than that right here on Bohol...

http://www.andy-smith-boatworks.com/wharram/andy_smith_boat_works.htm

[Dinner]

Originally posted by MarkG
28.57$ billion to be exact!

It seems like an 8% sales tax on those yachts ought to balance the budget without telling the kids they don't need to learn how to read.

[Kuciwalker]

Not if you have a budget shortfall of $2 billion.

[Kontiki]

Originally posted by Oerdin


It seems like an 8% sales tax on those yachts ought to balance the budget without telling the kids they don't need to learn how to read.

I'm sorry, do you actually believe that $28.57 billion worth of yachts are sold in California each year?

[Patroklos]

What exactly is the loophole btw? Is there no tax payed on yachts at all?

[Imran Siddiqui]

Originally posted by Patroklos
What exactly is the loophole btw? Is there no tax payed on yachts at all?

It seems as they are exempt from sales tax, at least according to the original article.

[Kontiki]

It took me about a minute to find out that there's no sales tax on yachts (how they define that or if all boat sales are exempt, I have no idea). In the same time, I also found out that closing the loophole would bring in approximately $26 million in revenue. The best way to close a $2 billion deficit indeed.

*note: I'm all for closing the loophole, it just isn't going to make a dent in the budget issue.

[Patroklos]

So in other words the education budget was in fact not cut so that the fat cats could cruise the litorals.

And yes, close the loop hole.