While most Californians watched the votes tallied for the presidency, a startling upheaval occurred right under our noses: Democrats captured absolute two-thirds majorities in both houses of the state legislature, a feat not managed since the passage of Proposition 13 in 1978.
What does a ballot proposition from more than 30 years ago have to do with last week's elections? Almost everything.
Most people remember Proposition 13 for the provision that slashed local property taxes by about 57 percent, strapping local governments and increasing the burden on the state to help fund local programs and services.
But another provision required that state taxes could not be increased without an absolute two-thirds vote of both houses of the state legislature--the highest threshold of its kind in the nation.Further along, the article continues,
But the most important policy area for the Democrats will exist in the realm of taxes.
Currently, the state relies on the progressive income tax for more than sixty percent of its general fund--a percentage that will increase somewhat in the short-term with passage of Proposition 30 last week.
This proportion is neither sustainable nor desirable. Other sources must be tapped in order to decrease the reliance on a single source.
One idea is to tax oil as it comes out of the ground; California is the only oil-producing state (fourth largest in the nation) that does not do so.
Another possibility is to broaden the sales tax, which currently applies to only about 40 percent of all goods and services produced in the state.
Along these lines, "sin" taxes on liquor, beer and wine have not been touched for decades. California also ranks 33rd in tobacco taxes.
Still a third possibility might be to alter Proposition 13 by passing a statewide property tax for businesses which, in many cases, have paid the same amounts since 1978.
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