Taxable Talk

From Russ Fox, E.A., of Clayton Financial and Tax of Irvine, CA
All items below are for information only and are not meant as tax advice.
Please consult your own tax advisor to see how each item impacts your own situation.
Propositions 98 & 99
For Californians it's again time to vote. This coming Tuesday it's the June primary. Normally, that's when citizens of the Golden State get to vote in the presidential primary...but not this year (the presidential primary was back in February). However, votes in Congressional races and for the state legislature do occur on Tuesday.

There are two propositions on the ballot: propositions 98 & 99. Both deal with eminent domain, and based on the ballot title both would prevent eminent domain for taking private property for private uses.

However, the proponents of each initiative think that only their initiative gives the desired result. Proposition 98, according to its proponents, enacts real eminent domain reform while proposition 99 was passed by the legislature only to confuse the voters. If you believe proposition 99's proponents, it's the other way around: proposition 98 would cost local government too much while proposition 99 would bring real reform.

No matter what, come Tuesday exercise your right and vote. You can find your polling here.
Why California Has a Budget Problem
Daniel Weintraub of the Sacramento Bee has an excellent article today on California's budget problems, their cause, and why certain areas of the budget will likely have to be cut (and will benefit from increased funding). If you want to know why we're in this situation, this article is a must-read.