{"id":78278,"date":"2019-06-24T00:01:31","date_gmt":"2019-06-24T07:01:31","guid":{"rendered":"https:\/\/calmatters.org\/?post_type=commentary&p=78278"},"modified":"2019-06-24T00:01:31","modified_gmt":"2019-06-24T07:01:31","slug":"arbitrary-tax-policy-spawns-an-offspring","status":"publish","type":"post","link":"https:\/\/calmatters.org\/_ko\/commentary\/2019\/06\/arbitrary-tax-policy-spawns-an-offspring\/","title":{"rendered":"Arbitrary tax policy spawns an offspring"},"content":{"rendered":"

History has proven that no political decrees are more arbitrary than those about taxation.<\/p>\n

We hear a lot about \u201ctax fairness,\u201d but what is taxed and the level of that taxation follow no logical or moral course. Rather, those decisions are driven by ideology, political clout and the perceived need for revenue.<\/p>\n

State and federal tax codes are riddled with the anomalies that those factors spawn. Two of the more perplexing, found in California\u2019s sales tax system, illustrate the arbitrary nature of taxation politics:<\/p>\n

\u2014California doesn\u2019t tax cold prepared food, such as a sandwich from a deli, but if the sandwich is heated it falls into a different category and is taxed.<\/p>\n

\u2014Three decades ago, the custom software industry persuaded the Legislature not to tax their very expensive products sold to businesses, but the off-the-shelf software that ordinary consumers use is still subject to taxes.<\/p>\n

The overhaul of the federal income tax system two years ago by a Republican-controlled Congress and President Donald Trump was a potpourri of arbitrary decrees. They wanted to cut certain taxes, particularly corporate taxes, and offset the loss of revenue with other changes in tax laws.<\/p>\n

One of the more arbitrary of the latter \u2013 clearly with a political motive \u2013 was limiting personal income tax deductions for state and local taxes to $10,000. Not only did it provide more revenue, but hit taxpayers in high-taxing \u2013 and Democrat-voting \u2013 states such as New York and California the hardest.<\/p>\n

Democratic politicians in those states howled that it was a political punishment and it probably was \u2013 although it was no more arbitrary than any other tax decree.<\/p>\n

California\u2019s new governor, Gavin Newsom, wanted to increase the state\u2019s \u201cearned income tax credit\u201d that benefits the state\u2019s many working poor families, and proposed to pay for it by emulating a few of the federal tax overhaul\u2019s revenue-increasing provisions affecting businesses.<\/p>\n

It\u2019s called \u201ctax conformity\u201d and in the past California has generally adopted changes in federal income tax law to simplify filling out tax returns, but in this case, it was specifically to increase revenue.<\/p>\n

\u201cWe\u2019re only conforming to those provisions that made sense,\u201d Vivek Viswanathan, one of Newsom\u2019s budget officials, told a legislative committee last week, characterizing the proposal as closing unjustified tax loopholes.<\/p>\n

No, it was just another arbitrary effort to change tax policy for a specific purpose that had nothing to do with loopholes \u2013 which should be closed, by the way. Newsom wanted the money for a purpose that would resonate with legislators, helping the poor, and this was the way to get it.<\/p>\n

\u201cThese are the working poor and they are struggling,\u201d Assemblywoman Autumn Burke, an Inglewood Democrat, told the house last week before a 59-2 vote sent\u00a0Assembly Bill 91<\/a> to Newsom for a signature.<\/p>\n

Approval came despite a late-blooming effort by the auto industry to block one provision that would prohibit tax-free property exchanges. The industry said it would make business leases of cars more expensive because California was not conforming to a companion change in the federal law expanding write-offs for business purchases.<\/p>\n

The Alliance for Automobile Manufacturers and the Association of Global Automakers said in a letter to Newsom that it could cost those leasing cars $100 million more a year and \u201cIt is unreasonable to expect a small number of companies in one industry to carry such a large proportion of the burden.\u201d<\/p>\n

There are always winners and losers when politicians, for whatever motives, arbitrarily change tax policy.<\/p>","protected":false},"excerpt":{"rendered":"

California politicians dislike Donald Trump’s federal; tax overhaul but are adopting portions of it to raise revenue.<\/p>","protected":false},"author":73,"featured_media":36178,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"_stopmodifiedupdate":false,"_modified_date":"","newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","apple_news_api_created_at":"","apple_news_api_id":"","apple_news_api_modified_at":"","apple_news_api_revision":"","apple_news_api_share_url":"","apple_news_cover_media_provider":"image","apple_news_coverimage":0,"apple_news_coverimage_caption":"","apple_news_cover_video_id":0,"apple_news_cover_video_url":"","apple_news_cover_embedwebvideo_url":"","apple_news_is_hidden":"","apple_news_is_paid":"","apple_news_is_preview":"","apple_news_is_sponsored":"","apple_news_maturity_rating":"","apple_news_metadata":"\"\"","apple_news_pullquote":"","apple_news_pullquote_position":"middle","apple_news_slug":"","apple_news_sections":["https:\/\/news-api.apple.com\/sections\/49654979-841c-3b60-b9c1-b123dc98bd2d"],"apple_news_suppress_video_url":false,"apple_news_use_image_component":false,"_spanish_translation_id":0,"_is_translation":false,"_newspack_byline_active":false,"_newspack_byline":"","newspack_content_restriction_is_exempt":false,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[58,63],"tags":[40117],"legislator":[],"bill":[],"newspack_spnsrs_tax":[],"coauthors":[4174],"class_list":["post-78278","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-commentary","category-dan-walters","tag-commentary","entry"],"acf":[],"apple_news_notices":[],"yoast_head":"\nArbitrary tax policy spawns an offspring - CalMatters<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/calmatters.org\/_ko\/commentary\/2019\/06\/arbitrary-tax-policy-spawns-an-offspring\/\" \/>\n<meta property=\"og:locale\" content=\"ko_KR\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Arbitrary tax policy spawns an offspring\" \/>\n<meta property=\"og:description\" content=\"California politicians dislike Donald Trump's federal; tax overhaul but are adopting portions of it to raise revenue.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/calmatters.org\/_ko\/commentary\/2019\/06\/arbitrary-tax-policy-spawns-an-offspring\/\" \/>\n<meta property=\"og:site_name\" content=\"CalMatters\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/calmatters\/\" \/>\n<meta property=\"article:published_time\" content=\"2019-06-24T07:01:31+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/i0.wp.com\/calmatters.org\/wp-content\/uploads\/2017\/08\/capitol-building-mobile.jpg?fit=460%2C202&ssl=1\" \/>\n\t<meta property=\"og:image:width\" content=\"460\" \/>\n\t<meta property=\"og:image:height\" content=\"202\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Dan Walters\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@DanCALmatters\" \/>\n<meta name=\"twitter:site\" content=\"@CalMatters\" \/>\n<meta name=\"twitter:label1\" content=\"\uae00\uc4f4\uc774\" \/>\n\t<meta name=\"twitter:data1\" content=\"Dan Walters\" \/>\n\t<meta name=\"twitter:label2\" content=\"\uc608\uc0c1 \ub418\ub294 \ud310\ub3c5 \uc2dc\uac04\" \/>\n\t<meta name=\"twitter:data2\" content=\"3\ubd84\" \/>\n\t<meta name=\"twitter:label3\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data3\" content=\"Dan Walters\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\\\/\\\/calmatters.org\\\/commentary\\\/2019\\\/06\\\/arbitrary-tax-policy-spawns-an-offspring\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/calmatters.org\\\/commentary\\\/2019\\\/06\\\/arbitrary-tax-policy-spawns-an-offspring\\\/\"},\"author\":{\"name\":\"Dan Walters\",\"@id\":\"https:\\\/\\\/calmatters.org\\\/#\\\/schema\\\/person\\\/f900126cd171134825959a6903ab3654\"},\"headline\":\"Arbitrary tax policy spawns an offspring\",\"datePublished\":\"2019-06-24T07:01:31+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/calmatters.org\\\/commentary\\\/2019\\\/06\\\/arbitrary-tax-policy-spawns-an-offspring\\\/\"},\"wordCount\":586,\"publisher\":{\"@id\":\"https:\\\/\\\/calmatters.org\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/calmatters.org\\\/commentary\\\/2019\\\/06\\\/arbitrary-tax-policy-spawns-an-offspring\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/i0.wp.com\\\/calmatters.org\\\/wp-content\\\/uploads\\\/2017\\\/08\\\/capitol-building-mobile.jpg?fit=460%2C202&ssl=1\",\"keywords\":[\"Commentary\"],\"articleSection\":[\"Commentary\",\"Dan Walters\"],\"inLanguage\":\"ko-KR\",\"copyrightYear\":\"2019\",\"copyrightHolder\":{\"@id\":\"https:\\\/\\\/calmatters.org\\\/_ko\\\/#organization\"}},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/calmatters.org\\\/commentary\\\/2019\\\/06\\\/arbitrary-tax-policy-spawns-an-offspring\\\/\",\"url\":\"https:\\\/\\\/calmatters.org\\\/commentary\\\/2019\\\/06\\\/arbitrary-tax-policy-spawns-an-offspring\\\/\",\"name\":\"Arbitrary tax policy spawns an offspring - 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He began covering California politics in 1975, just as Jerry Brown began his first stint as governor, and began writing his column in 1981, first for the Sacramento Union for three years, then for The Sacramento Bee for 33 years and now for CalMatters since 2017. Dan is also the author or co-author of two books about California, \u201cThe New California: Facing the 21st Century\u201d and \u201cThe Third House: Lobbyists, Money and Power in Sacramento.\u201d He is a frequent radio show guest and occasionally appears on national television, commenting on California issues. Walters began his career in 1960 at the Humboldt Times in Eureka, California, a month before his 17th birthday, first as a newsroom aide and later as a police beat reporter. Having found his calling, he not only turned down a National Merit college scholarship but dropped out of high school, lacking one required class \u2013 ironically civics \u2013 to qualify for a diploma. Before moving to Sacramento to cover politics, he was the managing editor of three small daily newspapers. He has two adult daughters and three grandsons.","sameAs":["https:\/\/x.com\/DanCALmatters"],"birthDate":"1943-10-10","gender":"Male","jobTitle":"Columnist","worksFor":"CalMatters.org","url":"https:\/\/calmatters.org\/_ko\/author\/dan-walters\/"}]}},"parsely":{"version":"1.1.0","canonical_url":"https:\/\/calmatters.org\/_ko\/commentary\/2019\/06\/arbitrary-tax-policy-spawns-an-offspring\/","smart_links":{"inbound":0,"outbound":0},"traffic_boost_suggestions_count":0,"meta":{"@context":"https:\/\/schema.org","@type":"NewsArticle","headline":"Arbitrary tax policy spawns an offspring","url":"http:\/\/calmatters.org\/_ko\/commentary\/2019\/06\/arbitrary-tax-policy-spawns-an-offspring\/","mainEntityOfPage":{"@type":"WebPage","@id":"http:\/\/calmatters.org\/_ko\/commentary\/2019\/06\/arbitrary-tax-policy-spawns-an-offspring\/"},"thumbnailUrl":"https:\/\/i0.wp.com\/calmatters.org\/wp-content\/uploads\/2017\/08\/capitol-building-mobile.jpg?resize=60%2C60&ssl=1","image":{"@type":"ImageObject","url":"https:\/\/i0.wp.com\/calmatters.org\/wp-content\/uploads\/2017\/08\/capitol-building-mobile.jpg?fit=460%2C202&ssl=1"},"articleSection":"Dan Walters","author":[{"@type":"Person","name":"\ub304 \uc6d4\ud130\uc2a4"}],"creator":["Dan Walters"],"publisher":{"@type":"Organization","name":"\uce7c\ub9e4\ud130\uc2a4","logo":"https:\/\/calmatters.org\/wp-content\/uploads\/2019\/07\/calmatters-logo_2x.png"},"keywords":["commentary"],"dateCreated":"2019-06-24T07:01:31Z","datePublished":"2019-06-24T07:01:31Z","dateModified":"2019-06-24T07:01:31Z"},"rendered":"<meta name=\"parsely-title\" content=\"Arbitrary tax policy spawns an offspring\" \/>\n<meta name=\"parsely-link\" content=\"http:\/\/calmatters.org\/_ko\/commentary\/2019\/06\/arbitrary-tax-policy-spawns-an-offspring\/\" \/>\n<meta name=\"parsely-type\" content=\"post\" \/>\n<meta name=\"parsely-image-url\" content=\"https:\/\/i0.wp.com\/calmatters.org\/wp-content\/uploads\/2017\/08\/capitol-building-mobile.jpg?resize=60%2C60&ssl=1\" \/>\n<meta name=\"parsely-pub-date\" content=\"2019-06-24T07:01:31Z\" \/>\n<meta name=\"parsely-section\" content=\"Dan Walters\" \/>\n<meta name=\"parsely-tags\" content=\"commentary\" \/>\n<meta name=\"parsely-author\" content=\"Dan Walters\" \/>","tracker_url":"https:\/\/cdn.parsely.com\/keys\/calmatters.org\/p.js"},"jetpack_featured_media_url":"https:\/\/i0.wp.com\/calmatters.org\/wp-content\/uploads\/2017\/08\/capitol-building-mobile.jpg?fit=460%2C202&ssl=1","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/calmatters.org\/_ko\/wp-json\/wp\/v2\/posts\/78278","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/calmatters.org\/_ko\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/calmatters.org\/_ko\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/calmatters.org\/_ko\/wp-json\/wp\/v2\/users\/73"}],"replies":[{"embeddable":true,"href":"https:\/\/calmatters.org\/_ko\/wp-json\/wp\/v2\/comments?post=78278"}],"version-history":[{"count":0,"href":"https:\/\/calmatters.org\/_ko\/wp-json\/wp\/v2\/posts\/78278\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/calmatters.org\/_ko\/wp-json\/wp\/v2\/media\/36178"}],"wp:attachment":[{"href":"https:\/\/calmatters.org\/_ko\/wp-json\/wp\/v2\/media?parent=78278"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/calmatters.org\/_ko\/wp-json\/wp\/v2\/categories?post=78278"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/calmatters.org\/_ko\/wp-json\/wp\/v2\/tags?post=78278"},{"taxonomy":"legislator","embeddable":true,"href":"https:\/\/calmatters.org\/_ko\/wp-json\/wp\/v2\/legislator?post=78278"},{"taxonomy":"bill","embeddable":true,"href":"https:\/\/calmatters.org\/_ko\/wp-json\/wp\/v2\/bill?post=78278"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/calmatters.org\/_ko\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=78278"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/calmatters.org\/_ko\/wp-json\/wp\/v2\/coauthors?post=78278"}],"curies":[{"name":"\uc6cc\ub4dc\ud504\ub808\uc2a4","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}