San Diego Business Journal


A look back at one of the issues being discussed on the Opinion pages of the San Diego Business Journal 12 years ago this month:

"With new state sales taxes a fait acompli, it has become painfully obvious that our Republican governor cannot avoid tax increases any more than our Republican president.

The reality is that even after bureaucratic fat is cut, the state budget cannot be balanced unless we raise taxes or severely cut basic services even tax-cut extremists must soon realize that not all their taxes go to lazy bureaucrats or welfare recipients.

The state should instead look to another source of revenue: The taxes lost to Proposition 13. The tax-cutting measure may have been a good idea before California's biggest decade of growth and before its infrastructure further deteriorated, but the time has come for its reform.

Meanwhile, sales taxes have been bumped up among the highest in the nation the new rate of 8.25 percent is one of the highest in California, and equal to the rate collected in New York and Texas. Only Louisiana and Alabama collect higher rates

The new sales tax is a poor, stopgap solution to the state's biggest crisis. It's time to reform Prop. 13."

, Editorial, July 15, 1991