KEVIN FAULCONER TAX PLAN:Proves he is an Economic Illiterate.
Stephen Frank, OP-ED, Exclusive to the California Political News and Views, 5/18/21
From Politico: ‘Faulconer strategist @stephenpuetz: “Newsom’s lead strategist with a bizarre rant the morning after Mayor @Kevin_Faulconer releases the largest middle class tax cut plan in CA history & set himself apart as the only candidate with experience & real substantive solutions to CA’s problems. Clear who concerns them.”
What is this plan to “save” the poor and middle class? Kevin Faulconer, the Arnold Schwarzenegger/Meg Whitman candidate for California Governor wants a tax cut for the poor and middle class. Under his plan, if you earn less than $50,000 or as a couple, less than $100,000, you will not have to pay income tax on those earnings.
Then, up to one million dollars the first $50,000 or $100,000 is not taxable. But he does not say how he will replace the revenues of the money not taxed. Also, it should tell us about THE TAX INCREASES HE WANTS, TO IMPLEMENT HIS PLAN.
The Sacramento Bee, April 21, 2021 had this:
“Joshua Rauh, professor of finance at Stanford Graduate School of Business, co-authored an extensive study of the impact of California’s higher tax rates for the nonpartisan National Bureau of Economic Research.
The report found not only migration of the wealthy since California raised its income taxes in 2012, but less taxable income from those who stay. People change their financial behavior to adjust to the new tax laws.
“There was a pretty big erosion of taxable income relative to what would have happened had those people not changed their behavior,” Rauh said. “They’re reporting less taxable income. Maybe they’re shifting business activity to other states. Maybe earning less overall. Maybe they’re going offshore.”
There are three effects of the Faulconer plan:
- Less Revenue
- Less revenue means higher taxes on the wealthy
- That means more wealthy to leave the State
- More rich leaving, less revenue for the Sate
- Those NOT paying taxes have no problem supporting bigger, more expenesivr government—they are not paying.
- That will cause more people to leave the State.
- Even if the poor and middle class do not pay income taxes on the first $100,000 the cost of goods, services and food will go up, to pay the higher corporate and personal income taxes.
All of this Kevin Faulconer could have learned if he took, and passed, an Economics 1 class.
Instead, Faulconer thinks the voters are not smart enough to understand what he is doing. Newsom is using tax dollars to buy votes to stop the Recall. Faulconer wants to buy votes to get elected Governor—in his case, if he has his unpaid tax cut, he will create more joblessness, less revenues, more business for U-Haul and a bigger, more abusive government.
Reagan and Trump created tax cuts that built the economy—Faulconer is using Democrat economics, to kill jobs and the economy of California. Under Faulconer and Newsom we will have more of the very rich and the very poor—the middle class will be forced to flee to save themselves economically.
Faulconer calls his plan a “tax cut”, while not telling about the tax increases and loss of investment funds in the private sector to create jobs. Of course he believes in government, not privately run utilities—so government can control cost and use. Under his utilities plan if government does not like your business, you get no energy or very, very expensive energy—because it is controlled by government not the free market.
The good news is that the people of San Diego voted down the tax increases he proposed—I expect the people of California will be as smart.
On the Recall ballot there will be TWO candidates proposing higher taxes—Gavin Newsom and Kevin Faulconer. Guess I have to send him the Stanford report noted above—maybe Faulconer can be educated on the matter of taxes.
(Full disclosure: I have not endorsed a candidate for Governor)
