When you can’t beat ’em, cheat ’em:
California’s Democratic leaders were planning a vote today on a brazen proposal to raise gas, sales and income taxes through a series of legal maneuvers that would bypass the Legislature’s minority Republicans.
The Democratic gambit, announced Wednesday, would raise $9.3 billion to ease the state’s fiscal crisis by increasing sales taxes by three-fourths of a cent and gas taxes by 13 cents a gallon, starting in February. The plan would add a surcharge of 2.5% to everyone’s 2009 state income tax bill. . .
Inside the Capitol, the strategy is considered revolutionary, because it would sideline the GOP. Though Republicans are a minority in both houses of the Legislature, they have repeatedly blocked tax increases and thwarted budgets they did not like, because California is one of only three states mandating a two-thirds vote for both budgets and tax increases. Achieving that threshold requires some Republican votes. . .
The plan hinges on a legal distinction made by judges that a tax is imposed broadly and used for general government purposes, while a fee is charged to users of a specific benefit provided by government, such as a road.
The proposal would employ an arcane loophole in state law that lets legislators pass a tax bill with a simple majority vote — if the bill does not raise more revenue.
The Democrats intend to do two things: eliminate some existing fees, including those on gasoline, and substitute tax increases that would include a 9.9% levy on oil extraction and the income tax surcharge.
Under the proposal, the Democrats would then reimpose the gas fees at higher levels; fees can be raised with simple majority votes. . .
Similar proposals have been considered in past budget crises but never acted on out of concern that they would unravel in court.
(Via Instapundit.)
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