Connolly and Steyer Tax Increase Proposals

CA State Senate candidate Damon Connolly and CA gubernatorial candidate Tom Steyer are proposing corporate tax increases to boost California’s tax revenues. But they’re not telling voters where the money would go or whose favor they are currying in making the proposals.

Here’s a hint to the first answer: More than 100 percent of the last tax increase went to increases in spending on pensions and other retirement costs for members of public sector unions. State retirement funds have even larger unfunded liabilities now than they did then, which portends even greater retirement spending down the road.

Here’s a hint to the second answer: The vast majority of ~$500 billion of annual state spending including federal funds goes to politically-active public employees and healthcare enterprises and their employees. Steyer doesn’t need their money but he needs the endorsements of public sector unions. Connolly needs both.

Public employees and the employees of healthcare enterprises funded by the government make up only ~10 percent of the state’s population but wield close to 100% of the state’s political power. What are you doing to change that?