The Economy and California's Budget Deficit

By Cat Woods

Strategies for achieving a responsible, balanced budget

1. I would work for fair taxation: that is, the wealthiest strata of the population should pay at least the same tax rate as the poorest strata. This alone would create millions of dollars. I would work for amending Proposition 13 to disallow misuse by large corporations (and instead protect the small family businesses it was intended to protect).

2. I would work to end "corporate welfare" including massive subsidies to industries such as the oil industry.

3. I would work toward investing funds such as pensions in projects and businesses which provide long-term benefit to the economy and community, such as building renewable energy sources. Tax credits should be reserved for companies that truly benefit society and the economy in the long term.

4. We can generate revenue by creating community asset bases, such as community-owned solar power, instead of relying on bonds which profit only wealthy investors.

5. I would promote a living wage for workers, with a cost of living adjustment. As Federal Reserve chairman, Ben Bernanke, has pointed out, every study confirms that raising minimum wage has been show to increase the tax base, benefit the entire economy and increase the spending power of every income bracket. The only reason I can see for resisting these benefits is that the elite wish to remain in control by driving the majority of the population to desperation. Every person who cares about the welfare of our people and economy should resist such attempts.

6. I would support legislation to require that the bonds we do use for funding be competitively bid. The County Clerk in Marin County, Michael Smith, helped write such legislation, a sorely needed reform. Financing through bonds has become one of the least known and most out of control scams in this state, costing tax-payers many times the fair market rate for financing. Michael's bill has not yet gone anywhere, since so much of the current system profits from this scam, but this reform should be brought forward and promoted again. Michael himself told me that every time he explains the current situation to a citizen, the response is invariably, "But isn't that illegal?" The answer is, "No, but it should be."