Monday, June 10, 2013

Shakedowns

By introducing bills threatening taxes on interests that can afford to defend themselves, and then tabling the measures for reconsideration next year, members of the majority party have another 12 months to run their highly profitable shakedown racket, pressing politically vulnerable industries for campaign contributions. - Howard Jarvis Taxpayers Association

These business interests get the message and they pay. Back in 2009, when then-Gov. Schwarzenegger was promoting his Proposition 1A, a $16 billion tax increase on regular folks, a spokesman for the Los Angeles Chamber of Commerce admitted that it was important to support the governor’s measure, because the alternative would likely be higher taxes on business.

Those who look at compliant business interests as the problem, would only be part right. California continues to be rated as one of the worst states in the nation to do business. The American Legislative Exchange Council (ALEC) has released its annual economic rankings of all U.S. states, and California ranks 47th for economic outlook and CEO Magazine has rated California as the worst state to do business for eight years in a row. California businesses are struggling under high taxes and suffocating regulations.

Interestingly, the reaction among various businesses and industries to the shakedowns is not uniform. Some are more than happy to play the game as a cost of doing business and, besides, it gets them into some pretty fancy parties. Other quietly seethe as they reluctantly write the checks because they know how wrong it is. Either way, businesses have adopted a “go along to get along” approach in a desperate effort to survive.

But in the end, to see who is really responsible for our pay-for-play culture in the state capitol, we voters must look in the mirror. As long as we continue to elect ego-driven, money-grasping politicians who put themselves above the interests of average Californians, we will continue to suffer under dysfunctional governance.
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