Several special interest groups
have put an initiative on the November ballot to increase taxes
A 400% Tax Increase – The initiative imposes a 400%
tax increase on cellular, home and
business phone usage. This initiative
would cost consumers $540 million per year in new taxes, an amount
that would likely increase in the future.
No Cap on Tax Increase - These special interests are claiming
that the amount consumers pay will be limited to “only”
50 cents a month. But when you read the fine print in their initiative,
you quickly discover that the measure contains absolutely no cap
whatsoever for cell phone and business customers.
You Might Have to Pay Three Times - Even for residential
customers, the tax is only limited to 50 cents per service provider.
Consumers with different local and long distance companies will
be forced to pay twice every month on their land line, then pay
even more for their cell phone.
No Limit on Cell Phone Taxes - The initiative’s supporters
claim that their proposal limits telephone taxes at 50 cents per
bill. The measure’s
proponents fail to tell you that the measure
contains absolutely no limit whatsoever on cell phone bills. For
millions of Californians with mobile phones, the resulting tax increase
will be enormous.
No Limit on Business Phone Taxes - The measure also fails
to limit the tax for business phone lines. For already-struggling
small businesses, the new tax will be a major new cost.
Crumb’s to 911 -The proponents of this initiative claim
that it will help the 911 system. They don’t tell you that
less than 1% of the proceeds of this initiative go to 911 communications
Seniors Will Be Hit Hard – Seniors who are not on Lifeline
will be forced to pay this new tax, and they’ll pay double
if they have different
local and long distance providers.
No Real Accountability For Funds – The initiative would
create a costly new government bureaucracy that doles out cash to
hospitals and doctors, with no requirement that this windfall be
used to improve health care in California. Without a mandatory audit
provision, the potential for waste and fraud is enormous.