Taxable Talk

California has passed (and the Governator has signed) SB50, a law allowing tsunami-related charity donations made in January 2005 to be taken on your 2004 tax returns. The same conditions that apply to donations on the Federal (US) tax returns apply.

California currently has a tax amnesty program. It has a little carrot and a BIG stick. If you haven't filed (or are otherwise delinquent) for a tax year before 2003, you can file an amnesty application by March 31st; you then must file and pay your taxes by May 31st (June 30, 2006 if you file an installment agreement). Full details of the amnesty program are available on the FTB's website. The FTB projected that the program would generate $550 million for California.

It won't.

To date, according to this article in the San Francisco Business Times the state has received $25 million. While there will be quite a few applications received in the last two of the program (and perhaps another $100 - $200 million received by May 31st), the program doesn't make sense for most taxpayers who haven't paid. Why haven't they paid? Because they don't have money! And you expect them to come up with the money in two months?!?

When the amnesty program was announced last year, our local chapter of Enrolled Agents were unenthusiastic and thought it wouldn't meet its' goal. It appears we were right.

On the Federal level, the Democrats in the Senate want to filibuster President Bush's judicial nominees. Whether the Democrats in the Senate like it (or not), there's nothing in the Constitution saying that you can filibuster appointments. The Democrats are trying to change the rules.

Here in California, after property taxes went crazy in the 1970s, Proposition 13 was passed. That limited property tax increases and mandated a 2/3 vote for new taxes.

The education establishment, unhappy that many of their tax increases aren't being approved by the voters, now wants to change the rule so that it takes a 55% vote for passage. The next time you're approached by anyone from the education establishment, ask them:

- Does money spent correlate with improved learning for our children? [No, according to numerous studies.]
- Why do the school districts that spend the most money have some of the worst results?
- Why are you against standardized tests that mandate our children meet basic education levels before being advanced to the next grade?

Remember, it's our money being spent--that's what tax dollars are.

According to the Daily News, Disneyland brings $3.6 billion annually to the local economy. This story details the positive impact of the theme park: $1.62 billion to Orange County (45% of the impact). That mouse brings in a lot of money.

California received yet another warning about its' dreadful business climate. According to this story in the Sacramento Bee, 1.3 million of California's 1.5 million factory jobs are in danger of being lost. According to the Bay Area Economic Forum, most of these jobs would move overseas. The report blames the usual suspects: high tort costs, high energy costs, and high taxes.

Is anyone in Sacramento (e.g. the legislature) listening?