Mike McDaniel

In all the election hoopla surrounding the socialists push for our "new hope" my focus was on the first question on the Massachusetts ballot.  "Question 1" as it was described on ads and radio waves would have abolished the MA state income tax (full disclosure; I contributed financially to the cause).

The proposition failed by a slim margin.  The opponents of the prop were anyone that derives their income from taxpayers.  Perhaps the most vocal were the teacher employee unions.  They spent over $7,000,000 fighting question 1.  It would appear that teachers don't think they would be employable elsewhere… and more importantly that the MA government would not make cuts elsewhere to the budget in order to fund education.
 
The forces behind "Question 1" have found several silver linings from the campaign quoted from Michael Cloud:

• "The $7,268,816 we forced the Teachers Unions to spend to keep the state income tax is $7,268,816 they could NOT spend elsewhere to raise property taxes and other taxes."
• This year, the Massachusetts state legislature and Governor postponed
government spending increases, announced spending cuts – and did NOT
increase taxes. Our Ballot Initiative and our campaign for it are a key
reason why.
• Hundreds and hundreds of advertisements by the Teachers Unions
claimed:“YES on Question 1 = Raising Property Taxes.” These ads aroused and reinforced opposition to raising property taxes. The Teachers Unions campaign against our tax cut just might stop their 2009 campaigns for property tax increases."

For some time now I have made a hobby of "following" tax payer funded defined benefit pensions plans here in California.  On election day a major voice (yell) was heard on the public employee pension issue.  Taxpayers in Orange County voted overwhelmingly to relieve the Board of Supervisors from making future pension plan pay raises (HERE). In the future all pension plan pay increases will be voted on by the taxpayers.

The taxpayers of Orange County have paved the way for taxpayer funded pension plan reform in other communities.   It is apparent that present and past leaders across this great nation need voter help in being stewards of tax revenues.  It is refreshing to have leaders in Orange County design a solution which taxpayers overwhelmingly supported to start solving the unfunded liability crisis.   Does your community have any such leaders?

[gjr – Mike McDaniel is a financial professional in Nevada County and contributes to this blog from time to time.]