With high gas prices, high food prices, and banking crunches putting the economic scare into people, it would seem like an odd time to put tax hikes on the ballot.
Just as many people see their wallets shrinking by the above reasons and more, politicians also see their coffers shrinking as property and sales taxes yield continually fewer gains.
In addition to Mayor Foster’s $120 a year parcel tax proposal, the Long Beach Unified School Board voted unanimously last night (Ellis absent) to put a measure on the ballot levying a property tax of $60 per year per $100,000 of assessed valuation for school district voters. This is in addition to a proposed Long Beach ballot initiative that would extend the 5% utility tax onto cell phones and the internet. Also, Los Angeles Mayor Antonio Villaraigosa wants to raise the rest of the county’s sales tax by a half cent to pay for improvements for the MTA. Don’t forget the tax hikes that state officials are eyeing in this year’s budget (or “repealing tax cuts”, as they like to frame them).
That’s a lot of taxes for one Tuesday in November.
In 2006, a package of tax hikes was floated, including a “mere” $75 parcel tax measure; none of which ever made it to the ballot. The reasons for failure were manifold—competition between the police, fire unions and libraries, pre-election fears and post-election promises, and an overall sense that a tax hike wouldn’t pass muster with voters.
Back then, oil was around $75 a barrel, rice was still a poor-man’s staple, and real estate was in a seller’s market, so what makes them think they can pass now?
The parcel tax measures have been promoted as bond measures (technically, they will be selling bonds, along with taxing property owners), but how long until it gets pointed out that they really are tax hikes?
Maybe our elected officials are counting on an Obamamania blowout this November, turning out so many tax-hike hungry Democratic voters that opposition will react with a peep.
In the end, it’s earned political capital that gives politicians the courage to ask you (and in Mayor Foster’s case, 67% of you) to impose higher taxes on yourself.
For the last two years, Bob Foster has been an overwhelmingly popular mayor; taking proactive action at City Hall that makes insiders swoon, and a cool, no-nonsense demeanor that leaves regular citizens satisfied.
Much like Governor Schwarzengger did in 2004 following his astonishing recall victory, Mayor Foster spent his first year’s political capital on a special election full of charter changes—hence gaining him even more political capital to expend this year.
The $571 infrastructure package is a bold measure from a man and a staff acutely aware of how tenuous political capital can be.
The reaction from City Council members Tuesday night may shed light on how solid the Mayor’s political capital truly is.
The City Council meeting starts at 5pm at City Hall.