Taxation Without Representation

Taxation without representation

            Those of us who complain about the recent twelve cent increase in gas tax might recall Proposition 6 on the November 6, 2018 General Election Ballot which not only offered an opportunity to repeal this $56.1 billion tax, but also required majority voter approval for new or increased state fuel or vehicle taxes.  Incredibly, this Proposition failed - a missed opportunity  by California voters.

The Democratic Party held a "Super Majority" in both houses of our State Legislature but lost it when Senator Josh Newman was recalled in 2018 for supporting this gas tax increase.

When considering our Governor is a Democrat and his political party remains in control of State Legislature, it would appear the California Taxpayer is held captive to the will of the Democrats.

It should be noted that The State Board of Equalization once administered this gas tax and a host of other taxes but was stripped of most of its authority by the State Legislature in 2017. 

The California Department of Tax and Fee Administration (CDTFA) now administers these taxes.  The head of the CDTFA is appointed by the Governor with approval by the Senate; whereas, the Board of Equalization is administered by four elected officials which offers some accountability to California voters.

A Public Utility like PG & E or California-American Water Co (Cal-Am) are legally created monopolies supposedly, for the public good.

California, in an effort to restrict a public utility from excessive fees, rate increases or other potential abuses to their customer base, created the California Public Utilities Commission (CPUC) as an advocate for the rate payer.

The five Commissioners of the CPUC are appointed to six year staggered terms by the Governor and confirmed by the State Senate.  As previously noted, all current appointments will be made under the supervision of a Democratic party majority.

The San Bruno disaster and recent catastrophic fires in California has called into question whether the CPUC is failing in its duty to properly regulate public utilities.

Moreover, for the past several years, the CPUC has acted as a "Lead Agent" in behalf of Cal-Am with respect to their pursuit of a slant well desal facility.  One has to wonder how it is possible for the CPUC to act in behalf of Cal Am and  remain an advocate for the rate payer?  Why is this not a conflict of interest?

Considering the CPUC commissioners are appointees by a single party dominated by Democrats, and the rate payer has a serious complaint with respect to a public utility, where does he go for relief?

            Clearly, the current political dominance by Democrats allows, not only tax legislation but utility rate and fee increases without voter representation - a troubling prospect.

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July 2019

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