The Benefits of Limiting Tax Increase: Why the Ability to Control Taxes is Critical for San Diego Residents

Making it harder to raise taxes is a better solution for the constituents in the community. With inflation already sky-high and the average San Diegan now incurring debt each month instead of saving (38th San Diego Economic Forum), raising taxes is not the answer to the government taking care of people. Instead, people need the ability to pick themselves up and support themselves.

The proposed constitutional amendment, which will be on the 2024 ballot in California, would require the Legislature to put any new statewide tax up for a popular vote, and local governments would have to do the same. The proposed amendment also includes fiscal tighteners such as expanding the definition of what a “tax” is and requiring all local taxes raised for a specific purpose to win a two-thirds majority. This would undo a series of recent state Supreme Court rulings that loosened the rule.

California Business Roundtable, an advocacy group that represents the state’s biggest businesses, is leading the campaign, with funding coming mostly from major real estate firms. Opponents, such as advocates for local government and organized labor groups, have responded to the measure as a declaration of war. They believe that the measure could cause irreparable harm to a city’s ability to provide essential services to its residents.

Critics have suggested that the proposal is similar to one pitched in 2018 by the Business Roundtable, with financial backing from the American Beverage Association. That proposal resulted in the Legislature agreeing to pass a 13-year ban on local soda taxes, which some lawmakers referred to as “extortion” and a “nuclear weapon.”

However, Rob Lapsley, president of the California Business Roundtable, denies any ulterior motive behind the proposal. He states that voters want the opportunity to have the final say on future taxes and that the measure would not have been introduced if proponents were not intent on passing it.

The proposed constitutional amendment would give voters the power to decide on future taxes and prevent local governments from overburdening their constituents with taxes they may not be able to afford. With the 2024 ballot already crowded with contentious propositions, this proposal could bring much-needed relief to the people of California.

Photo by A McLin via Flickr