WHEN I GROW ADDITION OF THE
SENATE COMMITTEE ON GOVERNANCE
AND FINANCE
I THINK YOU SO MUCH FOR JOINING
US ON THIS.
.
NON RAINY MORNING OF JANUARY
TENTH.
WE HAVE A BUSY DAY TODAY AND
LIKE TO BE TO DO SOME
HOUSEKEEPING AS WE TYPICALLY DO
HERE TO START OF THE HEARING.
COME SENATE BILL FOUR ONE FOUR
WILL BE COMING OFF OF TODAY'S
AGENDA.
I IN WE WILL NOT BE TAKING
ACTION ON THAT.
THERE ARE TWO ITEMS UNDER
CONSENT COUNTER TODAY SENATE
BILL FIVE ONE NINE AND SENATE
BILL FIVE TO TWO WILL BE TAKEN A
MOTION SINCE WE HAVE A QUORUM ON
THAT ONCE WE STOP MOTION.
FUN AND THEN. WE HAVE AN
INFORMATIONAL HEARING
IMMEDIATELY FOLLOWING ARE BLUE
BILL HEARING TODAY.
THAT WILL BE ON THE FEDERAL TAX
REFORM BILL THAT LETS RECENTLY
MOVED
I JUST WANNA REMIND YOU FOR SOME
HOUSEKEEPING TOMORROW. TWO
O'CLOCK A ROOM ONE TWELVE WE
EVER FOLLOW UP HEARING TO THE
GHOST SHIP HEARING THAT WE
HAD-LAST YEAR WHERE I SOLUTIONS
WILL
BE PRESENTED. SO WITHOUT FURTHER
ADO AGAIN WE WELCOME YOU THANK
YOU SO MUCH FOR JOINING US IS
THERE.
THAT'S ESTABLISH A CORPSMAN GO
TO MISS LANE CHESTER FOR ROLL
CALL PLEASE WATER HEATER.
PRESIDENT WIN HERE WE PRESENT TO
HELP YOUR BILL PRESENT
HERNANDEZ.
INTENDED TO PRESENT HERTZBERG.
LARA MORLOCK PRESIDENT MORE
LEPROSY.
OKAY ARMIES ESTABLISH WERE RIGHT
ON THANK YOU SO MUCH.
BUT IS THERE A MOTION TO APPROVE
THE CONSENT CALENDAR CONSISTING
OF SENATE BILL FIVE NINETEEN AND
SENATE BILL FIVE TWO TWO.
WITH THE MOTION BY CENTER
HERNANDEZ ROLL CALL VOTE PLEASE
JUST L/NG JUST ACQUIRED BY
REQUIRE AYE WIN. WIN I'D BILL.
BILL I HEARD IN THIS. ROOM AND
THE SIGN HERTZBERG LARA MORLOCK.
MARLA GUY.
THEY CURRENTLY ENJOYS A FIVE IS
ZERO VOTE WE'RE GOING TO KEEP
THE.
A VOTE OPEN PAIN WALAU AND.
ANSWER LARA AS WELL AS MR
HERTZBERG TO BE AIMED AT ON IN
JUST A BIT. SO WE FOR SENATOR
BATES IN HER WORK
ON THIS ISSUE. FUNDS CENTER
BATES AND I HAD AN OPPORTUNITY
TO BE ABLE TO DISCUSS THIS BILL
EARLIER. IN THE WEEK AND THAT
HERE THIS MORNING.
SO IF IT WORKS FOR THE
COMMITTEE.
CENTER BATES.
AND I HAVE AGREED THAT THIS
WILL JUST BE A PRISON TATIAN
ONLY THIS COMMITTEE WILL NOT BE
TAKING A VOTE TODAY.
SKINNER BATES WILL BE.
NOT INTRODUCING A BILL ON THIS
ISSUE. LATER IN THE AREA IN THIS
SESSION.
I'M COMMITTED TO BE ABLE TO HAVE
THAT CONTINUED CONVERSATION
ABOUT WITH.
THE GOOD LEADER ON THIS ISSUE
THAT I DO SINCERELY MEANNESS I
APPRECIATE ALL OF OUR HARD WORK.
THAT YOU ARE AN ABSOLUTE
PLEASURE TO BE A TO WORK WITH
WE'RE GRATEFUL THAT YOU'RE HERE
HAPPY NEW YEAR IN AGAIN THIS
WILL JUST BE A PRISON TATIAN
ONLY AND SHE IS ALSO JOINED BY
OUR. A VICE CHAIR VICE CHAIR
WYNN WELCOME.
I THINK YOU CHAIRMAN PROBLEM IN
FOR THOSE KIND REMARKS AND NOT
LET ME SHARE THAT I APPRECIATE
TELL YOUR STAFF AND YOU TAKING
THE TIME TO ACTUALLY. YOU KNOW
LOOK AT THE BILL AND THINK THAT
THERE ARE SOME NOT A REAL MERIT
TO IT. BOB WE NEED TO KIND OF
MASSAGE IT HERE AND THERE AND
WE'RE CERTAINLY WILLING TO DO
THAT IN THE NEXT COUPLE OF WEEKS
AS WE. GO INTO THE HEART OF THE
LEGE SESSION BY. MY PRESENTATION
IS BASICALLY OUT TO SHARE WITH
YOU ALL THE INFORMATION RELATED
TO.
REPATRIATION ON THAT WE HOPE IS
COMING IN A MEGA DOLLARS SIDE TO
OUR NATION AND ON DOWN ON TO OUR
STATE.
THE GAS TAX IS GONE INTO EFFECT
IN THE FEDERAL GOVERNMENT HAS
APPROVED THE NEW TAX PLAN. MY
COMMITMENT TO SB THREE THIRTY
SEVEN REMAINS THE SAME HOWEVER
HOW TO REFRESH YOUR MEMORY.
BOB THE BILL ESTABLISHES THE
REPATRIATION INFRASTRUCTURE FUND
TO COLLECT CALIFORNIA TAX
WINDFALL FROM THE BUSINESSES WHO
WILL. BE BRINGING MANY BACK TO
CALIFORNIA TO REPAIR OUR ROADS
ESSENTIALLY THE BILL AND WE HAVE
ABA. NAMED AT THE REPATRIATE
REBUILDING REPAVED.
BOB FOR CALIFORNIA TO HAVE A
READ VIBRANT ECONOMY ONE THAT
CREATES JOBS AND FINANCIAL
SECURITY FOR ALL WE MUST
MAINTAIN REBUILD AND REPAIR THE
VITAL INFRASTRUCTURE THAT KEEPS
EVERYTHING. AND EVERYONE MOVING
AND I THINK OUR CONVERSATIONS
SOB MY CONVERSATIONS WITH THE
CHAIRMAN IS TO ENSURE THAT THAT
INFRASTRUCTURE ODD TAB ON THIS
BILL HAS THEM. A BROADER MEETING
THEN JOHNSON
PERHAPS THE ROADS PARTICULAR
THERE'S MUCH INFRASTRUCTURE IN
OUR STATE THAT WE KNOW. THOUGHT
HE IS SO WANTING A HOBBY.
REHABILITATION AND CERTAINLY
EXPANSION SO THAT'S WHAT OUR
CONVERSATIONS WILL BE FOCUSING
ON HOW DO WE ARE BRING A MORE
GENERIC. DEFINITION TO
INFRASTRUCTURE AS WE LOOK AT THE
NEEDS HEARING CALIFORNIA.
THE AMOUNT OF REVENUE THAT COULD
BE GENERATED IN CALIFORNIA.
USES ON CERTAIN
BUT THE FRANCHISE TAX BOARD LAW
IS ABLE TO GENERATE IN A
TESTAMENT.
ACCORDING TO US CONGRESS JOINT
COMMITTEE ON TAXATION IN TWENTY
FIFTEEN THE TOTAL OF FOREIGN
EARNINGS AMERICAN COMPANIES
AMOUNTED TO TWO POINT SIX
TRILLION. DOLLAR SOME ANALYSTS
PREDICT THAT COMPANIES WILL
BRING IN ABOUT THREE HUNDRED
BILLION TO FOUR HUNDRED BILLION.
INTO THE UNITED STATES THIS YEAR
WITH APPLE REPRESENTING TWO
HUNDRED BILLION OF THAT AMOUNT
THAT COULD BE A TREMENDOUS
INVESTMENT FOR OUR STATE. AS
SUCH ON THE BILL SEEKS TO
CAPTURE THOSE FIRMS AS A COME
BACK TO THE STATE AND ENSURE
THAT THE WINDFALL IS ALLOCATED
TO THE TOWARDS THE NEEDS THAT WE
FEEL HOT WITHIN THE
INFRASTRUCTURE. HALLMAN OF
CALIFORNIA BECAUSE HE IS THE
BENEFIT A BENEFACTOR OF ALL
SUCH.
INCREDIBLE AMOUNT OF MONEY THAT
COULD BE APPLIED TO THAT I AM
PROUD TO HAVE A SIGNATURE. A WIN
WITH ME IF HERE AS A JOINT
AUTHORED ON THE MEASURE AND SHE
HAS SOME MOB COMMENTS ADD.
YOU SO MUCH RIGHT LEADER
MINIMIZE YOUR.
THANK YOU MISTER CHAIRMAN AND
THANK YOU MADAM LEADER I I'M I'M
PROUD TO SERVE WITH SENATOR
BATES AS A JOINT AUTHORED THIS
TIMELY AND IMPORTANT MEASURE.
FIXING CALIFORNIA'S CRUMBLING
INFRASTRUCTURE MUST BE A TOP
PRIORITY IN ORDER FOR OUR
ECONOMY TO THRIVE WITH OVERSEAS
CORPORATE EARNINGS BY AMERICAN
COMPANIES IN THE TRILLIONS.
CALIFORNIA STANDS TO POTENTIALLY
GAIN A SIGNIFICANT PORTION OF
THE REVENUE FROM THESE EARNINGS.
THIS COMMONSENSE LEGISLATION
PROVIDES US WITH AN UNEXPECTED
OPPORTUNITY TO DIRECTLY ADDRESS
DESTROY FALLS IN OUR STATE
TRANSPORTATION SYSTEM. SO WE CAN
BEGIN TO REPATRIATE REBUILD AND
WE PAVE CALIFORNIA'S
DETERIORATING INFRASTRUCTURE.
THIS ADDITIONAL FUNDING WOULD
LEAVE THE PLACE UP.
PRESSURE ON.
LOCALS TO PRODUCE MORE FUNDING
FOR TRANSPORTATION AGAIN I WANT
TO THINK OF MISTER CHAIRMAN AT
MADAME LEADER FOR.
INCLUDING ME IN PART THIS AND
ALSO LETTING US PRESENT THIS AND
TO HAVE THAT CONTINUOUS
CONVERSATION. WHO NOTHING IS A
MUCH BETTER VICE CHAIR I'M IN DO
LOOK FOR TO THE CONVERSATION?
AND BECAUSE THIS IS GOING TO BE
PRESENTED XIN ONLY WE SIT WOULD
LIKE TO WELCOME ANYONE THAT
WOULD LIKE TO SPEAK
SUPPORT. OUR ONLY REQUEST WOULD
BE IF YOU COULD PLEASE A PRESENT
AND TRUNCATED FASHION WE'D LIKE
TO BE A TO SEE IF THERE ARE ANY
INDIVIDUALS WHO LIKE TO SPEAK IN
SUPPORT OF THIS BILL. PLEASE
COME FOR THIS TIME.
SAME WOULD GO FOR THOSE WHO MAY
BE OPPOSED. PLEASE COME FORWARD.
WHEN WE BRING IT BACK TO
COMMITTEE TO BE TO SEE IF WE
HAVE ANY QUESTIONS OR COMMENTS
FOR EITHER MADAM LEADER OR MADAM
I SHARE.
THE REAL FUN WOULD LIKE TO BE A
TO SEE.
IF SENATOR BATES WOULD LIKE TO
BE WOULD HAVE ANY CLOSING
COMMENTS AND THEN WILL HAVE JUST
VERY BRIEF CLOSING COMMENT
SECTOR THIS BAND LEADER.
WILL TAKE YOU AGAIN NINE TWO
RAYMOND WIRE AND I THINK I MEAN
MOM MOST OF THOSE THAT I WANTED
TO BRING TO YOUR ATTENTION AYE
WHEN YOU LOOK AT THE AMOUNT OF
MONEY THAT.
HE IS POTENTIALLY OF LA
AVAILABLE I TO THE WHOLE ISSUE
OF INFRASTRUCTURE.
CALL YET ACTUALLY DWARFS WHAT IS
INTENDED TO BE RAISED THROUGH
THE GAS TAX OF FIFTY BILLION
DOLLARS OVER TEN YEARS SO. TO ME
THAT'S SOMETHING WE REALLY NEED
TO LOOK OUT A WHO NEED TO
BALANCE THAT IN TERMS OF. THE
TAX BURDEN OF THAT ARE
CALIFORNIANS ARE CARRYING IN
THIS IS AN OPPORTUNITY TO ASSIST
SALT WITH. PAUL BOWLES ISSUES
SAW AMONGSTUB ON CERTAINLY ARE
LOW AND MIDDLE INCOME FOLKS WHO
REALLY FEELING.
THE PRESSURE THESE DAYS SO THAT
WILL BE OUR CONVERSATION
CHAIRMAN AND I LOOK FORWARD TO
HAVING THAT WITH YOU. VERY
BIPARTISAN NO ABSOLUTELY THINK
YOU SUMMIT CENTER BATES THAT SO
THIS IS ONCE AGAIN A
PRESENTATION ONLY WHEN I SAY
THANK YOU CENTER BATES HER
FANTASTIC STAFF WHO'S ALSO HERE
IS WELL. UP FOR ALL THE WORK ON
THIS ISSUE WE LOOK FOR TO WORK
WITH YOU AS WELL THANK YOU VERY
MUCH THANK YOU GOOD TO SEE YOU.
ALRIGHT. SO WE ARE NOW WAITING
FOR OUR AYE NEXT AUTHOR. AND NOW
WE HAVE THIS TRADITION AYE IN
BETWEEN.
AS ARE WEIGHTY.
A. LOT OF THAT.
SITTER BELLI THING STARTED LAST
YEAR.
I DO A LITTLE BIT DANCE.
IN BETWEEN IS WE WAIT FOR OUR
NEXT AUTHOR A SITTER BELL SAYS
THERE'S NO WAY HE'S GONNA BE
DOING THAT AT THIS.
ALRIGHT SO I DON'T THINK WE'VE
HAD THE VICE CHAIR.
.
YEAH.
YEAH HE DO WE.
WE WELCOME AS WE WAIT UP FOR
ATTAINMENT BETWEEN.
AS YOU ALL REMEMBER US IN A BILL
THAT AN AMAZING
IT WAS AFTER.
AS I WRITE CENTER.
ALRIGHT SPLIT TWO IS ABSOLUTELY.
WE WELCOME.
AND ANY COMEDY.
ANY ITEMS AS WE WAIT.
NO COST ALRIGHT COOL THANK YOU
SO MUCH.
SO I'M AS WE WAIT FOR OUR NEXT
AUTHOR WE HAVE PLAN YOU TALK
IT IS ARE IN YOUR IN YEAR OFF
RIGHT WHICH WILL SURPASSING
AROUND AGAIN THANK YOU ALL FOR
JOINING US WE PRE.
YOU PATIENTS WE WILL OUT WE WERE
TO TAKE A VERY BRIEF BREAK OUT
WE ARE GOING TO STAY IN SESSION
NOW AND I'LL BE RIGHT BACK WITH
YOU. AS SOON AS WE GET OUR NEXT
AUTHORED
YOU SO MUCH FOR PATIENTS
RIGHT.
THANK YOU SO MUCH YOUR PATIENTS
WE HAVE A TWO AUTHORS WHO ARE
HERE WE'RE GONNA START WITH AT
THE GET SENATOR FROM THE
FANTASTIC CITY SAN FRANCISCO.
BUT WITH SENATE BILL SEVEN
TWENTY SIX THAT SENATOR WIENER
WE WELCOME IN MASS ALWAYS TO THE
COMMITTEE. I DO BELIEVE SIR THAT
YOU ARE GOING TO HAVE BIPARTISAN
SUPPORT ON THIS BILL SO WOULD AT
BASKET YOU. PROVIDE A BRIEF
PRESENTATION HAPPY NEW YEAR SIR
IN WELCOME BACK. TO.
FIVE FIGURES TWENTY MINUTES
SUFFICIENT. THAT'S GREAT
ABSOLUTELY MORE LIKE WHAT ABOUT
HALF HOUR QUESTION SO BE GOOD.
BUT THERE AGAIN I DAY.
OKAY.
MARANISS'S AND THANK YOU FOR
SCHEDULING THIS SITE I'M OUR
COLLEAGUES ON CALIFORNIA. TIME
AS OF TODAY EXISTING SALES AND
USE TAX EXEMPTIONS TOTAL OVER
TWENTY TWO I THOUGHT OF A WAY OF
DETERMINING WHETHER THEY'RE
ACTUALLY ATTAINING. OTHER GOALS.
S. B. SEVEN TWENTY SIX WILL
REQUIRE FUND AND THE BILL
INTRODUCED IN THE LEGISLATURE
THAT I'M.
INVOLVES A NEW SALES OR USE TAX
EXEMPTION. REQUIRE THAT ALSO
INCLUDE REASONING OFFER THAT
EXEMPTION AS WELL AS PERFORMANCE
INDICATORS.
IT WILL ONLY APPLY TO BILLS
INTRODUCED ON OR AFTER JANUARY
FIRST TWENTY NINETEEN. THIS IS
AN IMPORTANT BILL THAT BUILDS
UPON THE WORK OF MY PREDECESSOR
SENATOR LENO AYE IN S. B. THIRTY
THIRTY FIVE.
WHICH REQUIRED ALL TAX
CREDIT-BILLS OUGHT TO EXPLAIN
THE
BENEFITS OF THE CREDIT. AND
INCLUDE PERFORMANCE MEASUREMENT
STANDARDS.
OKAY. THANK YOU SO MUCH WITH THE
MOTION ON THE FLOOR THANK YOU SO
MUCH ASSN WINNER WOULD LIKE TO
BE A SAFE WAY OF ANYONE THAT
WOULD LIKE TO BE ABLE. TO SPEAK
IN SUPPORT OF THE BILL TO PLEASE
COME FORWARD THIS TIME.
WE BY ANYONE WHO MAY BE OPPOSED.
LET'S BRING IT BACK TO THE
COMMITTEE FOR ANY CONVERSATION
WE DO HAVE A MOTION ON THE
FLOOR.
PLEASE SIT AYE-MOORLACH JUST ONE
QUICK QUESTION THOUGH IN A BILL.
YOU MENTIONED WAS FOR TAX
CREDITS YEAH BUT HAS AGREED THAT
HAS TO.
I BELIEVE SO YEAH OKAY AND AND
AND SO YOU DO THE SAME THING FOR
SALES TAX.
ARE THOSE THE ONLY TWO AREAS OR
SHOULD WE. BE BEING A LITTLE
MORE. CONSISTENT AND DO IT WITH
EVERY.
AREA OF ATTACK US WOULD BE HAPPY
TO LOOK AT THAT AS IT MOVES
THROUGH THE PROCESS SO IN YOUR
RESEARCH OF ONLY FOUNDED THAT
IT'S DONE FOR THE TAX CREDITS.
YES AND.
BUT DOES THIS OTHER AREA OUT
THERE.
TOOK THE CELLS ARE NEW SOCKS
WHICH IS SUCH A SIGNIFICANT.
FUNDING SOURCE IN CALIFORNIA.
THANK YOU REQUIRE.
REQUIRE AYE NGUYEN.
THEY'LL. VALLE AYE FERNANDES.
DECIDE HERTZBERG. LARA MORE LOT.
WELL A GUY.
THAT CURRENTLY ENJOYS A FOUR IS
ZERO VOTE WE'RE GONNA KEEP THE
ROLE OPEN IN HAVE THE MEMBERS AT
ON SENATOR THANK YOU SO MUCH
YOUR BEING HERE.
GRATEFUL.
ALRIGHT WE ARE NOT HAVE THE
DYNAMIC DUO TO PLEASE JOIN US WE
HAVE AYE CENTER GAINES AND
CENTER TO HELP.
WHO WILL BE ADVANCING LAND
OWNERS OF PROPERTY?
AT FALLEN LEAF FLEE TO VOTE IN
DISTRICT ELECTIONS AND SERVICE
BOARD MEMBERS.
ON THE FALLEN LEAF LAKE
COMMUNITY SERVICE DISTRICT.
ONLY FLAKE IS POCKETED AWAY IN
THE TAHOE BASIN.
MANY CABIN NUMBER OWNERS AND
TOURISTS ENJOY. THE ESCROW AS
EXQUISITE SCENERY AND
REMOTENESS.
OF FORMALLY FLAKE IN THE WARMER
MONTHS
HOWEVER IN THE WINTER MONTHS
ROAD ACCESS TO FALLEN LEAF LAKE
IS RESTRICTED.
THIS MAKES IT NEARLY IMPOSSIBLE
FOR OWNERS OF THE CABINS TO
ACCESS THEIR PROPERTY.
PHONE THE FLIGHT COMMUNITY
SERVICES DISTRICT PROVIDES FIRE
PROTECTION AS WELL AS
RECREATIONAL ACTIVITIES. TO THE
COMMUNITY AND THE PUBLIC AT
LARGE.
CURRENT LAW ONLY ALLOWS MEMBERS
TO SIT AND PARTICIPATE ON A
BOARD IF THEY'RE FULL TIME
RESIDENTS OF THE LOCATION.
UNFORTUNATELY THE NATURE
LOCATION MAKES IT DIFFICULT FOR
MEMBERS TO QUALIFY.
TO SERVE ON THE CSD BOARD THIS
BILL WAS MEANT TO ADDRESS THE
UNIQUE NATURE OF FALL ONLY FLAKE
CST RESIDENTS.
AND WHAT THEY'RE FACING AND
ALLOW LANDOWNERS TO SERVE.
AS BOARD MEMBERS OF THE CST IN
ORDER TO VOTE ON CST MATTERS
THAT AFFECT FONDLY FLAKE.
THIS BILL IS RECEIVED NO
OPPOSITION IN FACT IT HAS
OVERWHELMING SUPPORT FROM THE
FALLEN LEAF LIKE.
COMMUNITY. UNANIMOUS SUPPORT
FROM THE CSD BOARD. AND SUPPORT
OF SUPERVISORS TO NOVA CELL OF
THEY'LL RUN A COUNTY BOARD
SUPERVISORS. MEMBERS THIS IS A
LOCAL PROBLEM WITH A LOCAL
SOLUTION.
I URGE YOUR SUPPORT.
AND I'M JOINED HERE TODAY BY MY
COLLEAGUE JOINT AUTHORS SENATOR
HILL.
THANK YOU SO MUCH AND AGAINST WE
WELCOME CENTER HELD A COMMITTEE
GOOD MORNING SIR THANK YOU VERY
MUCH MISTER CHAIR PRECEDED AND
THANK YOU FOR ALLOWING ME THE
OPPORTUNITY.
THERE ABOUT THREE HUNDRED
CABINS IT'S AROUND FALL ONLY
FLAKE IN SOUTH LAKE TAHOE YET
LESS THAN ABOUT TEN PEOPLE LIVE
THERE FULL TIME.
MANY THE CABIN OWNERS ARE FROM
MY DISTRICT AND ALSO MANY FROM A
SENATOR MCGUIRE DISTRICT OF THE
CABIN OWNERS ARE PART OF A
COMMUNITY SERVICE DISTRICT.
YOU KNOW THE PAGE FOR PIPE FIRE
SERVICE EMERGENCY RESPONSE THAT
ONLY HELPS THE CABIN OWNERS BUT
ALSO ALL THE VISITORS. THAT HIKE
AND RECREATION THE AREA.
RECENTLY THE DA IS WE KNOW
CONTACTED THE CABIN OWNERS AND
SAID THEY CAN NO LONGER
REGISTERED AT THEIR CABIN IN
ORDER TO VOTE ON COMMUNITY
SERVICE DISTRICT ELECTIONS. AND
THOSE ASSESSMENTS OF THE BILL
WERE PROPOSING JUST SAYS THAT
ALL CABIN OWNERS CAN VOTE FOR
PURPOSES OF COMMUNITY.
FUTURE COMMUNITY SERVICE
DISTRICT ELECTIONS AND
ASSESSMENTS ONLY. ALL OF THESE
PEOPLE WANT TO DO IS CAN PUBLIC
WONDERS CONTINUE TO HAVE THE
BOARD BE OPERATIONAL CONTINUE TO
RAISE MONEY FOR THE FIRE
DISTRICTS OF THEY CAN PROVIDE
SERVICES WILL COUPLE OF THE
ISSUES HAT WERE RAISED. UP IN
THE ANALYSIS IN OUR
CONVERSATIONS OVER THE LAST YEAR
ONE WAS THE CONSTITUTIONALITY OF
THIS.
WE CHECKED WITH ALLEGE COUNCIL I
THINK ALL OF YOU HAVE THE
OPINION OF WHICH COUNCIL WHICH
SAYS IT THIS.
THIS DECISION.
THAT IT WE'VE AND THE QUESTION
THAT WE RAISED OF ITS
CONSTITUTIONALITY A IS NOT AN
ISSUE I THINK GOT READ FROM A
QUOTE THE COURT SAID WAS ASKED
TO DETERMINE WHETHER THE IN.
FRANCHISE WOMAN OF NON RESIDENT
PROPERTY OWNERS UNCONSCIOUS TO
USUALLY DILUTED THE VOTES OF
RESIDENTS.
IN MAKING ITS DETERMINATION THE
COURT APPLIED THE RATIONAL BASIS
TEST BECAUSE THE STATUTE
EXPANDED RATHER THAN RESTRICTED
THE FRANCHISE.
AND OF THE EXPANSION OF LINE
WITH LEGISLATIVE FINDINGS ALSO
THE ISSUE IN QUESTION WAS
WHETHER THIS WAS SETTING A
PRECEDENT.
FOR FUTURE ACTIONS HOWEVER IN
NINETEEN NINETY AB THIRTY FIVE
FORTY EIGHT ESTABLISH THIS EXACT
SAME CIRCUMSTANCE OF VOTING FOR
THE SIERRA LAKE WATER DISTRICT
SO WHEN THERE'S A NEED THE
COMMUNITY AND THE STATE HAS COME
TOGETHER TO. TO FORM A SOLUTION
AND ALLOW THE COULD WORK OF
THESE DISTRICTS TO MOVE FORWARD
IRISH PERFECTLY ASHER AYE VOTE
MEMBERS THANK YOU. THANK YOU SO
MUCH CENTER WE'RE GRATEFUL WITH
BOTH YOUR HERE WE'D LIKE TO BE
AROUND BY IF YOU HAVE ANY
WITNESSES IN SUPPORT. A TO BE A
COMPORTED THAT TIME I AT THIS
TIME WE HAVE CITY TWO WITNESSES
IN SUPPORT.
IN THEIR PRIMARY WITNESSES HOT
TAKE NO MORE THAN THREE MINUTES
WITH ACTIVITY GOP WINS IN SPORTS
AND GAMES.
THERE WAS SO. MUCH CASEY AND
DAVID ANDERSON AND AUTHORS OKAY.
I WOULD LOVE TO HAVE COME
FORWARD.
ALRIGHT SKI SEEMS TRANSCEND WE
WELCOME YOU THINK IT'S SO MUCH
OF BEING HERE TODAY HAPPY NEW
YEAR WE WELCOME YOUR COMMENTS
AND PLEASE. IF YOU DON'T MIND I
SERVE ON THE FALLING LEAVES
CST BOARD THINK YOU.
AND I'M HERE TODAY IN SUPPORT
OF SB FIVE SIXTY ONE. THIRD
THIRTY THREE PEOPLE SITTING IN
THE AUDIENCE TODAY HAVE COME A
LONG WAY TO LEND SUPPORT TO THIS
BILL.
A NINETY SEVEN PERCENT OF THE
FALLEN LEAF COMMUNITY. AGREES
WITH THIS AUDIENCE.
BUT S. B. FIVE SIXTY ONE IS THE
BEST AND ONLY SOLUTION TO OUR
PROBLEM.
THAT NINETY SEVEN PERCENT
INCLUDES ALL OF THE VERY FEW
KNOWN FULL TIME RESIDENTS AT THE
LAKE.
WE HAVE LETTERS OF SUPPORT FROM
ALL FOUR OF THOSE WHO ARE
CURRENTLY REGISTERED TO VOTE.
THE PROBLEM'S BEEN WELL
IDENTIFIED IN WELL DESCRIBED IN
THE NIGHT SHOW WE HAVE A
COMMUNITY WHO HAVE BUILT A LOCAL
FIRE DEPARTMENT FROM SCRATCH.
WILL FUND RAISE TO BUILD A STORE
MARINA AND A FIRE HOUSE.
AND WHO VOTED TO TAX THEMSELVES
TO SUPPORT THE FIRE DEPARTMENT.
THOSE PEOPLE WHO'VE DONE ALL
THAT AND ARE PROUD OF IT.
INCLUDING THE THIRTY THREE IN
THE AUDIENCE RIGHT NOW HAVE NO
SAY OVER HOW THOSE ASSETS ARE
MANAGED AND OPERATED.
MEANWHILE THERE'S BEEN NO TURN
OVER DURING THE PAST FIVE YEARS
ON OUR BOARD.
WE NOW HAVE FOR BOARD MEMBERS
DOWN FROM FIVE AND WE'VE BEEN
UNABLE TO FIND A FIFTH.
TO JOIN US BECAUSE OF FEAR OF
PROSECUTION.
S. B. FIVE SIXTY ONE WOULD
CHANGE THAT AND ENABLE US TO
ATTRACT NEW BLOOD TO THE BOARD.
IT HAS THE SUPPORT OF OUR COUNTY
SUPERVISORS SUPERNOVA CELL.
WHICH WRITTEN A LETTER IN FAVOR
OF IT I BELIEVE IT'S IN THE
FILE.
I HAVE A COPY IFANYBODY SHOULD
LIKE AND WOULD LIKE TO SEE THAT
LETTER.
IS ALSO SUPPORTED BY OUR FIRE
CHIEF WHO'S IN THE AUDIENCE.
THERE'S NO KNOWN OPPOSITION TO
THIS BILL AND HARMS NOBODY.
IT WILL HOWEVER L. TO ENABLE US
TO QUE VERY GOOD FIRE DEPARTMENT
ONE WHICH PROTECTS THOSE OF US
WHO LIVE THERE DURING THE SUMMER
AND FALL.
AND ALSO THE MANY THOUSANDS OF
TOURISTS WHO COME EVERY YEAR TO
ENJOY THE SCENERY. AND WRECK
CREATE ON THE HIKING TRAILS ALL
AROUND US.
S. B. FIVE SIXTY ONE WILL ALLOW
US ONCE AGAIN.
THE PLAN FOR THE FUTURE RATHER
THAN JUST CARE TAKING THE
PRESIDENT.
THANK YOU VERY MUCH THANK YOU SO
MUCH OKAY FOR YOU HERE WHAT
CONSERVE YOUR MIND IDENTIFYING
YOURSELF YOU THREE MINUTES SIR
AND THANK YOU SO MUCH FOR TAKING
THE TIME TO BE HERE TODAY. THANK
YOU MY NAME IS DAVID ANDERSON
I'M A PART OWNER OF A CABINET
FALLING FLAKES ALONG WITH FIVE
GENERATIONS OF MY FAMILY
PLANNING.
I'D LIVE IN OAKLAND CALIFORNIA.
.
FIRST I'D IF ANY OF THE MEMBERS
ARE COMMITTEE HAVE QUESTIONS I'D
BE MORE THAN HAPPY TO TRY AND
ADDRESS THEM FOR YOU. SECONDLY I
JUST LIKE TO ASSURE THIS
COMMITTEE THAT THERE REALLY IS
NO HIDDEN AGENDA HERE. THIS IS
NOT A FIGHT BETWEEN ONE
POLITICAL FACTION OF FOAMY FLAKE
HAVE VERSES ANOTHER POLITICAL
FACTION.
BUT OF A PEOPLE IF ONLY FIGHT NO
MATTER WHAT THEIR BELIEVES IN
OTHER AREAS ARE YOU. BASICALLY
UNANIMOUS IN THEIR BELIEF THAT
WE NEED TO ADDRESS THIS PROBLEM
WE NEED TO HAVE THE ABILITY TO
CONTROL OUR OWN AFFAIRS.
BUT SECONDLY THERE'S NO ECONOMIC
AGENDA HERE FOR ONLY. SERVING ON
THE CSD BOARD IS AN UNPAID
POSITION IT INCURS A SUBSTANTIAL
OUT OF POCKET EXPENSE FOR THE
MEMBER MEMBERS TO SERVE. SO
WE'RE NOT PER TRYING TO EXCLUDE
SOMEBODY ELSE TO GET SOMEBODY
ELSE IN THIS IS LITERALLY WHAT
IT APPEARS TO BE THIS IS A SMALL
COMMUNITY WITH A VERY UNIQUE
PROBLEM. WE HAVE ADDRESS OUR
PROBLEMS IN THE PAST IN A FAIRLY
COMMONSENSE MANNER AND WE'VE
BEEN VERY SUCCESSFUL IN DOING
SO.
AND OUR FIRE DEPARTMENT
COMMUNITY AREA ARE GOOD EXAMPLES
OF THAT.
WE WOULD LIKE THE ABILITY TO
CONTINUE TO ADDRESS OUR OWN
PROBLEMS IN THE FUTURE AND THIS
BILL APPEARS TO BE THE ONLY
PASSED TOWARDS GETTING THAT
ACCOMPLISHED.
THANK YOU FOR YOUR CONSIDERATION
THANK YOU SO MUCH HAS CHANGED
AND AGAIN WE WE APPRECIATE BOTH
YOU TAKING THE TIME TO BE HERE
TODAY TRAVELIN SACRAMENTO THANK
YOU.
SO IS YOUR WHAT WOULD LIKE TO BE
A TO DO NOW IS OPEN IT UP TO ANY
INDIVIDUAL WHO WOULD LIKE TO BE
ABLE TO VOICE HER SUPPORT OF THE
BILL BUT WE ASK IN THIS PORTION
OF THE HEARING IS TO PLEASE TAKE
YOUR FIRST AND LAST NAME. HOT
AND YOUR POSITION ON THE BILL
AND RIGHT NOW WE'RE GONNA ASK
ANY INDIVIDUAL WHO LIKE TO BE A
COME FOR TO THIS MICROPHONE. WHO
WERE IN SUPPORT THE DEL?
THERE WE GO.
WE WELCOME YOU AGAIN FIRST LAST
NAME AND THAT YOU SUPPORT SP
FIVE SIXTY ONE. THANK YOU
SENATOR ALL MY NAME IS ROBERT
CATHCART TIME THE PRESIDENCY IS
THE BOARD. OF NEW I HAVE A
RESIDENTS AT SEVEN SIXTY SIX
PRICE LANE AT FALLEN LEAF. OUR
FAMILY HAS A BROUGHT ON A CABIN
ACROSS THE LETTERS AROUND THE
SIDE OF THE LAKE VERY CLOSE TO
WHERE MISTER ANDERSON'S CALL
FAMILY HAS A CABIN. AND OUR%
FAMILIES BEEN THERE SINCE
NINETEEN ELEVEN I SUPPORT THIS
BILL WHOLEHEARTEDLY FOR ALL THE
REASONS STATED.
IT JUST MAKES REALLY GOOD SENSE
BUT TO CONTINUE OUT THE WAY WE
ARE GOING FORWARD IN SUPPORTING
AND PAYING FOR THE OPERATION OF
THE FIRE DEPARTMENT. THANK YOU
SO MUCH THANK YOU FOR BEING
HERE.
GOOD MORNING.
MORNING MY NAME IS TOM LICKETY
AYE.
HAVE A CABINET FULL ONLY FLAKE
ON FOREST SERVICE LAND. HAVE
BEEN IN THE FAMILY FOR OVER
FIFTY YEARS MY GRANDSON THINKS
IT'S HIS.
AND IT IS IT WILL BE AM I AM
SPEAKING GOOD MORNING MORNING
STEVEN
MALLORY I'M ALSO A.
MEMBER OF THE COMMUNITY SERVICES
DISTRICT LONGTIME. MEMBER OF
THAT BOARD.
AND.
I'VE HAD TO I'M A NEWCOMER
FOLLIES MAKEUP ONLY BEEN THERE
FOR FORTY FIVE YEARS. WE'VE
GIVEN A LOT OF THOUGHT TO THIS.
BILL A LOT OF EFFORT AND WE HAVE
CERTAINLY I AM CERTAINLY.
TOTALLY IN SUPPORT OF THIS BILL
THANK YOU FOR YOUR
CONSIDERATION.
BEING HERE N'T.
GOOD MORNING I'M LENNY ROBERTS.
UP WE HAVE MY HUSBAND AND I ARE
HOMEOWNERS ITEM FOAMY FLAKE AND.
WE'VE ONLY BEEN THERE FOR
TWENTY YEARS SO I KNEW THAT WE
WANT TO THANK THE AUTHORS FOR.
WORKING WITH US TO REACH A
SOLUTION. OUR FIRE DISTRICT.
WE'VE HAD VERY CATASTROPHIC
WILDFIRES NEARBY OUR FIRE
DISTRICT WAS OUR FIRST LINE OF
DEFENSE AND WE'VE ALSO HAD
DEBRIS FLOW AVALANCHES. ARE IN
OUR COMMUNITY AND A BRIGHT IN
OUR COMMUNITY SO THIS IS A VERY
IMPORTANT PUBLIC SERVICE NOT
ONLY TO THE HOMEOWNERS BUT ALSO.
TO ALL THE VISITORS WITH WE
PROVIDE EMERGENCY SERVICES AND
RESCUE FOR VISITORS AND FOR AND
NOT THE WILDERNESS SO YOU THANK
YOU VERY MUCH THANK YOU SO MUCH.
CHRIS COULD HAVE COACHES
REMINDER AT FIRST MY SENIOR
RUNNING MY NAME'S ROBIN HOLLINS
MY HAS ON MY OWN AT TWO.
IT PHONE WAY SAID WE FULLY
SUPPORT THIS BILL.
MEETING SOMEONE.
GOOD MORNING THANK YOU FOR OUR
OPPORTUNITY TO BE HERE. MY NAME
IS JUDY STEIN HARD CO OWNER OF
CAMDEN AT THE LAKE. AMER RETIRED
PUBLIC SCHOOL TEACHER AND THIS
IS OBVIOUSLY A LOOPHOLE THAT
NEEDS TO BE CLOSED SO THAT WE
HAVE CONTROL OVER THIS THANK
YOU.
THANK YOU SO MUCH.
GOOD MORNING.
ELIZABETH THE CADDY ARE WE ON A
CABINET FULL ONLY FLAKE GLEN
ALPINE FALLS TRACK NUMBER THREE.
I AM THE TOTAL SUPPORT OF THIS
BILL WOULD HOPE THAT YOU AGREE
WITH THANK YOU SO MUCH.
WELCOME AMERICA FOLKS IS Q.
RIGHT BEHIND THE MIKE OF SOME
INFO TO COMBINE PORT IT THAT'S
OKAY WITH FOLKS THANK YOU MY
NAME IS ROBERT DREW'S AROUND MY
FAMILY AND I OWN TWO CABINS.
AND THEY GET.
HALFWAY DOWN AT NIGHT AND THEY
WANT HELP.
SPEND SO BECAUSE THEY CAN'T SEE
ANYMORE SO THIS IS A.
FABULOUS WAY TO SOLVE THE
PROBLEM AND I'M IN SUPPORT OF
THE BILL THANK YOU THANK YOU FOR
BEING HERE GOOD MORNING. GOOD
MORNING ON GENIE CASEY AND WE
ARE ON THE WEST SIDE OF THE
LAKE.
AND HAVE HAD A CABIN FOR FORTY
SIX YEARS FIRST APPLIED
GENERATION CABANEL.
MIKE AND I HAVE.
THREE GENERATION CAPITA WE'VE.
I THINK WHAT HE SAID WAS SIX TO
CONSERVE THE FUTURE OF OUR
LITTLE LATE TO BE ABLE TO. HAVE
THE PROTECTIONS THAT WE NEED
OTHERWISE WE WILL HAVE.
NO ONE THAT CAN GET THERE. SOON
ENOUGH TO HELP MOST FOR PROBLEMS
THANK YOU THANK YOU SO MUCH
THANK YOU FOR COMING.
GOOD MORNING SIR.
GOOD MORNING ALLAN SPANIER
RESIDENT FLUENTLY FLAKE STANFORD
HILL.
NOW BEEN THERE FOR TWENTY YEARS
ALTHOUGH I'VE BEEN VISITING IT
FOR FORTY FIVE.
FOR MORE GOOD FRIENDS HAD A VERY
SERIOUS LIKE TO. MAKE SURE
THERE'S
PLENTY OF REPRESENTATION FOR.
MONEY TO BE SPENT FOR THE FIRE
FOR THE RESCUE THANK YOU THANK
YOU THANK YOU BEING HERE GOOD
MORNING.
GOOD MORNING. I AM KATHRYN
JOINER A TIME.
IN THEIR FIGHT THE FOLLY FOR
FORTY ONE YEARS.
I AM IN SUPPORT OF THE BILL.
I ALSO WAS RESCUED LAST YEAR
FROM THE FAR ONLY FIRED VOTE. I
WITH MY THREE AND SIX YEAR OLD.
HIT THAT SHOT ARE AT ROCK THAT
WAS JUTTING OUT FIFTEEN YARDS
OUT FROM SHORE DIDN'T SEE IT I
WAS JUST BELOW THE SURFACE.
WATER CAME ON FAST AND BOY DID
THEY GET THERE FOR US.
WE WOULD NOT A PATH THAT HAD
THAT FIRE DEPARTMENT NOT BEEN
THEIR. THANK YOU DID YOU TELL
YOUR STORY.
THE MORNING MORNING THANK YOU
SENATOR MCGUIRE MONIES CHAT
JOINER I AM A CONSTITUENT OF
YOURS AND I HIGHLY SUPPORT SB
FIVE SIXTY ONE EXCEPT THANK YOU
GRATEFUL YOU'RE HERE THANK YOU.
GOOD MORNING GOOD MORNING CAROL
SARGENT AND I SUPPORT BILL FIVE
SIXTY ONE WE'VE BEEN A CABIN
OWNER FOR NINETY YEARS.
SO NOT ME
FAMILY.
I'M NOT QUITE THERE YET SO THANK
YOU WE APPRECIATE YOUR SUPPORT
THANK YOU SO MUCH.
GOOD MORNING.
PROMOTED DAVID SERGEANT ARE. THE
OTHER HALF OF THE NINETY YEAR
KEVIN AND I AM IN SUPPORT OF
FIVE SIXTY ONE HERE I'VE DONE
VOLUNTEER WORK FOR THE COMMUNITY
SERVICE. DISTRICT BOARD AND AM
TERRIFICALLY INTERESTED IN
HAVING REPRESENTATION ON THE
MAJOR DECISIONS FOR OUR SMALL
DISTRICT.
THANK YOU SO MUCH THANK YOU FOR
BEING HERE GOOD MORNING.
GOOD MORNING I'M JANET SUMMERS
IN MY FAMILY HAS HAD A CABIN ON
THE WEST SIDE OF FALLEN LEAVES
SINCE NINETEEN FIFTY. AND SO WE
GOT SEVEAL GENERATIONS GOING UP
THERE. I'M TOTALLY IN SUPPORT OF
THIS BILL AND HOPE ALL THE HARD
WORK THAT EVERYBODY'S PUT INTO
TRYING TO. BRING IT ABOUT SOFT
FOR THE FUTURE SUCCESS OF OUR.
OF OUR LAKE THANK YOU VERY LUCKY
SO MUCH THINGS FOR BEING HERE
GOOD MORNING.
GOOD MORNING. I'M KATE MOSS AND
WE HAVE A CABIN ON STANFORD HILL
ROAD AND MY GRANDFATHER STARTED
THAT WHOLE THING FOR OUR FAMILY
LIKE NINETEEN.
NINE NINER THIRTEEN SO WE HAVE A
VESTED INTEREST IN KEEPING THAT.
OPERATING WELL THANK THANK YOU.
WELCOME.
OKAY EARNING ONE I'M ELIZABETH
SPURLOCK MY FAMILY SAID A CABIN.
BUT FALL LEAF SINCE NINETEEN
FORTY SEVEN.
I'M TOTALLY IN SUPPORT OF THIS
BILL AND THANK YOU VERY MUCH
FOR.
TAKING YOUR TIME TO. CONSIDER.
WHAT COULD HELP THE COMMUNITY
THERE THANK YOU SO MUCH?
IT.
GOOD MORNING.
PARDON.
RENDON WHALER.
PART TIME. RESIDENT AT THE.
PHONE RATES. LAKE CABIN. FAN I
TOTALLY SUPPORT THIS BILL THANK
YOU THANK YOU SO MUCH SIR.
GOOD MORNING MORNING.
HI MY NAME IS WORTH SUMMERS WE
HAVE A CABIN ON THE WEST SIDE OF
PALM LEAF LAKE.
AND TO HAVE BEEN I HAVE BEEN
ASSOCIATED WITH THE KEVIN FOR
FIFTY SEVEN YEARS.
AND.
.
PARTICULARLY ON THE WEST SIDE
IT'S ESSENTIAL THAT WE HAVE
PALM.
WE HAVE A COMMUNITY.
LOCAL FIRE. SUPPORT BECAUSE THE
ROAD COMING IN IS VERY
DIFFICULT.
FOR ANY KIND OF FIRE SUPPORT.
COMING IN FROM THE OUTSIDE. AND
WE APPRECIATE YOUR SUPPORT FOR
THIS BILL THANKING HER LUCKY SO
MUCH INTERVENOR THE MORNING.
GOOD MORNING. MY NAME IS JANE
STORY POTS FLORID AND MY
FAMILY'S HAD A CABINET FOR ONLY
FOR OVER SEVENTY YEARS.
AND MY HUSBAND AND I ALSO OWN A
CABIN ON THE WEST SIDE FULHAM
LIFELIKE AND I FULLY SUPPORT
THIS BILL. PICKY SO MUCH THINGS
TO BE NEAR GOOD MORNING SIR.
GOOD MORNING HARM CHRISTOPHER
BOTSFORD THE WIFE OF JANE.
I MEAN THE HUSBAND OF JAN I.
IT'S ALL GOOD IT'S ALL GOOD.
AND I MAY HAVE JUST LOST MY CAB.
DAY.
ANY RATE.
AT ANY RATE I SPENT
MANY YEARS UP THERE WITH MANY
FAMILY MEMBERS MANY.
HE ATE ALL YOUR WORK ON THIS
BILL AND I.
S. ONE THANK YOU VERY MUCH FOR
BEING HERE GOOD MORNING.
GOOD MORNING MY NAME IS GLEN
ADAMS.
I DO HAVE A CABIN ON THE WEST
SIDE OF FALLING LEAF LAKE AND
SHARE THE CONCERNS OF MANY OF
THE WEST SIDE RESIDENTS AT
FALLEN LEAF.
I'M A BETTER PROUD MEMBER OF THE
FIRE DEPARTMENT FOR TWENTY YEARS
AND I FULLY SUPPORT THIS BILL
AND THANK YOU VERY MUCH FOR YOUR
TIME AND EFFORT. TO GET THIS
ACCOMPLISHED THANK YOU SO MUCH.
MORNING.
MORNING I'M JAMIE ADAMS AND.
CUT OF WIFE OF CLINT ADAMS. AND
WE OWN THREE COMMENTS UPON THE
FLAKE AND WE'RE TOTALLY
COMMITTED TO THE LAKE AND WE
REALLY THANK YOU FOR SUPPORTING
THIS BILL FIVE SIXTY ONE. THANK
YOU.
I'M MY NAME'S DAVE BUT I'M THAT
CEO OF STANFORD SIERRA CAMP THEY
ONLY DO ONE OF TWO COMMERCIAL
BUSINESSES ON THE LAKE AS WELL
AS A THIRTY YEAR VOLUNTEERING TO
CAPTAIN ON THE FIRE DEPARTMENT.
I'M IN FULL SUPPORT OF THE BILL
THINKING I MIGHT JUST WORK IT'S
GOOD TO SEE THINK YOU.
GOOD MORNING THANK YOU FOR YOUR
SUPPORT I AM IN FULL SUPPORT OF
THE BILL MY NAME'S.
THOMAS COULTER AND I HAVE A
CABIN.
ON THE WEST SIDE OF FALL ONLY IF
WHICH WE'VE OWN FOR SEVENTY FIVE
YEARS THANK YOU.
MORNING MR CHAIRMAN SENATORS.
I'M HEARING HERE AND I AM THE
FIRE CHIEF.
REVISED AND BRING THAT UP SO LA
AYE MITCHELL SPORTIVES IN BILL
LOVE FIVE SIXTY ONE.
AND WE HAVE A VERY VIABLE FIRE
DEPARTMENT WE HAVE THE
OUTSTANDING CREWS WORKED ROUND
THE CLOCK UNDER IN THE SUMMER
MONTHS.
AND NOW WE'VE BEEN ABLE PROVIDE
GOOD SERVICE.
TO THE COMMUNITY AND TO THE
VISITOR'S CENTER. THAT COMES ARE
INVISIBLE TO SATURDAY WHICH IS
A.
GREAT MANY DURING THE SUMMER
MONTHS
SO WHY I'VE THE TO ASK YOU TO
ENERGY TO GO PLEASE APPROVE THIS
BILL.
THANK YOU THINK YOUR HARD WORK
CHIEF COULD YOU SEE THANK YOU.
ANYONE ELSE WHO WOULD LIKE TO
SPEAK IN SUPPORT OF THE BILL
PLEASE COMPORTED MICROPHONE.
ALRIGHT WHAT WE SEE THERE ARE
ANYONE.
HERE TO SPEAK IN OPPOSITION OF
THE BILL IF YOU COULD PLEASE
COME FOR THE MICROPHONE.
OKAY WE'RE GONNA IT TURNED IT
BACK TO THE COMMITTEE TO SEE IF
WE HAVE ANY QUESTIONS OR
COMMENTS FROM THE COMMITTEE.
THAT WILL ALSO ENTERTAIN A
MOTION AS WELL BUT WOULD LIKE TO
SEE FOR ANY QUESTIONS OR
COMMENTS CENTER MORLOCK PLEASE
VIGOROUS CHAIR I'M JUST CURIOUS
MR CASEY MISTER ANDERSON. SO
WHEN DID YOU DECIDE TO DO A
COMMUNITY SERVICE DISTRICT HOW
LONG HAS THAT BEEN.
BUT NINETEEN EIGHTY CHARM
NINETEEN EIGHTY EIGHT NINETEEN
EIGHTY TWO PRECISELY YET AND
WHY.
FIRE.
YOU COULDN'T TO TO DO IT HAS SAY
AYE AYE AND ORGANIZE TO
HOMEOWNERS ASSOCIATION.
TOM I DON'T KNOW IF THAT WAS
CONSIDERED A TIME I KNOW THE CST
WAS CONSIDERED QUITE A THE BEST
WAY TO GO AT THE TIME. AND AT
THE TIME IT COULD HAVE BEEN SET
UP AS A LANDOWNER DISTRICT
VERSUS A RESIDENTIAL VOTING
DISTRICT.
I THINK THE PEOPLE WHO DID THE
WORK AT THAT TIME REALLY DIDN'T
UNDERSTAND THE DISTINCTION.
EVERYBODY ASSUMED THAT WE WOULD
BE ABLE TO VOTE UP THERE WHEN IT
BECAME IMPORTANT TO DO SO AND
THAT WAS THE PATTERN FOR YEARS
THAT YOU WOULD REGISTER IF THERE
IS AN ISSUE. THAT FALL ME FOR
NOTHIN OUT YOU'D VOTER NEAR YOUR
HOME DISTRICT.
WE.
GOT A RATHER RUDE AWAKENING FROM
THESE ELDORADO COUNTY DA'S
OFFICE.
YOU TOLD US THAT OUR PRIOR
PRACTICE HAD WAS VOTER FRAUD.
AND THAT'S WHY WE'RE IN THE
POSITION WE ARE GIFTED PEOPLE
WOULD SET UP THE CST INITIALLY
HAD BEEN MORE SOPHISTICATED. FOR
THE LANDOWNER DISTRICT WOULD
HAVE BEEN THE PATH OF THE STATE.
SO YOU DON'T TAKE IT THIS TIME
YOU DON'T JUST CLOSE THE CST.
WE REALLY CAN'T CLOSE THE CST
PRETTY CLOSE THE CST THEN WE
LOSE THE FIRE DEPARTMENT.
THERE'S BEEN SOME.
TALK AMONGST PEOPLE ABOUT
PERHAPS OUR FIRE DEPARTMENT
BEING ANNEXED BY THE LAKE VALLEY
FIRE DEPARTMENT.
OUR CHIEF OF THE FIRE DEPARTMENT
HAS JUST SPOKEN WITH THEIR CHIEF
FOR THE FIRE DEPARTMENT. ONE OF
OUR BOARD MEMBERS TO SPOKEN WITH
THE CHIEF OF THEIR FIRE
DEPARTMENT AND HIS STATEMENT IS
QUITE CLEARLY. WE DON'T WANT YOU
IT WOULD COST US APPROXIMATELY
HE ESTIMATES PUT TIME EIGHT
HUNDRED THOUSAND DOLLARS A YEAR.
IF THEY ANNEXED R. DEPARTMENT.
AND THEY DON'T WANT TO ASSUME
THAT FINANCIAL LIABILITY.
THE PROBLEM WE'RE DEALING WITH
HIS OF LEAF IS CLOSED DURING THE
WINTER.
WE HAVE FIRE PROTECTION WHEN
IT'S OPEN OUR FIRE DEPARTMENT
SHUTS DOWN WHEN THE ROADS ARE
SNOWED OVER.
LAKE VALLEY IS A COMPLETELY
DIFFERENT MODEL LAKE VALLEY GUNS
YEAR ROUND PERFECT
THANK YOU MR ANDERSON THANK YOU
MUCH CARE SUCH.
THE CITY OF ANY ADDITIONAL
QUESTIONS OR COMMENTS FROM THE
COMMITTEE WE WOULD ALSO AND
PLEASE MISTER BELL.
JUST.
BUT.
.
THE CENTERS CORRECT ME IF I'M
WRONG THE.
IT AREA IS SURROUNDED BY FOR
SERVICE IN FACT.
NATIONAL WILDERNESS AREAS IS
THAT CORRECT.
THAT'S WHAT I THOUGHT WAS SO.
DESOLATION WILDERNESSES SO.
ONE OF MY FAVORED.
LONG STANDING BACKPACK.
SITES ROBY LAKE LAKE OF THE
WOODS WE GOT UP THERE.
BEAUTIFUL UP THERE.
.
THE.
AREA NEEDS TO BE PROTECTED.
AND IF WE CAN STRENGTHEN THIS.
COMMUNITY SERVICES DISTRICT I
THINK THAT WOULD SERVE THAT
PURPOSE.
WE HAVE HEARD SPEARHEADED THAT'S
THAT'S MY. BY BECAUSE AS A JUST
A GORGEOUS STEREOTYPED MY WIFE
AND I'VE BEEN UP THERE.
LAST TIME WE WERE UP THERE WE
GOT CAUGHT IN THE FIRST SNOW
STORM OF THE YEAR.
HAD TO HIKE OUT FOLLOWING A WITH
A CALM THE BLOCKS.
WERE IN A SNOWSTORM ON THE RIDGE
THERE. WE HAD TO FOLLOW THE
DIVERT SIR WHAT OF THE CALL.
YOU KNOW THE.
GOD.
IF YOU'RE PRETTY ROUGH. IF I
COULD MAKE ONE COMMENT OUR FIRE
DEPARTMENT IS NOT GOING TO SAVE
YOUR CABINET. IF IT LIVES ON A
FARM YEAH WITH RARE EXCEPTIONS.
WE HAD A FIRE UPHILL YEARS AGO.
THE FIRE WENT FROM A CABIN THERE
TO KNOW CABIN THERE IN LIKE
FIFTEEN MINUTES
WHAT THE FIRE DEPARTMENT WILL DO
THOSE PREVENT THE SPREAD OF
FIRES INTO THE WILDERNESS AREA
AUSTIN BACK. THAT'S RIGHT.
THE WILDERNESS IT BELIEVE IS THE
MOST POPULAR WILDERNESS AREA IN
CALIFORNIA.
AND SHOULD THEY GO TERMS OF THE
NUMBER PEOPLE GO UP.
I ASKED HER AND THAT AND THAT
PROBABLY IS WHY ABOUT NINETY
PERCENT OF THE CALLS TO THE FIRE
DEPARTMENT BAR FOR THE PUBLIC.
WHO EITHER GOTTEN IN TROUBLE ON
THE TRAILS WERE THEY'VE?
AND SOMETIME IN SOME CASES
CAPSIZED TO RENTAL BOAT.
OVER EXERTED SIXTY FOUR HUNDRED
FEET OF ELEVATION THAT SORT OF
THING. MADE OUT WE MADE OUT A
YEAR THE SNOW'S COMING IN THIS
WAY.
ON TOP OF THE RIDGE HALF HAD
THAT HAPPENS WELL YEAH YOU
HAVEN'T YOU.
I THINK YOU SO MUCH WOULD LIKE
TO RECEIVE ANY ADDITIONAL
QUESTIONS OR COMMENTS FROM THE
COMMITTEE WOULD ALSO ENTERTAIN A
MOTION AS WELL.
THANK YOU SO MUCH WITH THE
MOTION BY SENATOR HERTZBERG THIS
IS A TO PASSED TO APPROPRIATIONS
I DO WE HAVE FOUND THAT WE'D
LIKE TO BE ABLE TO SEE BRITNEY
CLOSING COMMENTS.
JUST THE WOULD URGENT AYE VOTE
NOW HOW THE FIRE ISSUE ISRAEL UP
THERE WE HAD ANGLER FIRED TWO
THOUSAND SEVEN.
COULD HAVE GONE.
FARTHER WE'RE FORTUNATE THAT IT
DIDN'T TAKE A LOT MORE THE TAHOE
BASIN DOWN. IT WAS CLOSE TO
FORMALLY FLAKE AND.
.
WE THINK THIS IS THE RIGHT
SOLUTION.
HOW TO SOLVE?
ISSUES OF PHAM LI FLICK.
THANK YOU SO MCH SOONER GAINES
CENTER HAVE NO RESPECT REACTION
AYE VOTE MEMBERS THANK YOU THANK
YOU SO MUCH WE. WOULD LIKE TO BE
THAT CORRECT THAT MOTION CENTER
HERTZBERG THINGS IS DUE PASSED
TO ELECTIONS IN CONSTITUTIONAL
AMENDMENTS COMMITTEE THANK YOU
SO MUCH THAT WAS IN LATIN MY
MISTAKE SO WE HAVE A MOTION ON
THE FLOOR. BY CENTER HERTZBERG I
DO PASSED TO ELECTIONS IN
CONSTITUTIONAL AMENDMENTS
COMMITTEE ROLL CALL VOTE PLEASE
HIS FRIEND CHESTER
MCGUIRE.
WHEN I WHEN I.
BILL I LIVE THIS.
HERNANDEZ AYE HERTZBERG AYE
HERTZBERG AYE LARA.
MORE LOCK ON MORE LIKE GUYS BY
CURRENTLY HAVE A FIVE ZERO WE'RE
GONNA KEEP THE ROLE OPEN IT
LOOKS LIKE THIS BILLS CAN BE
RUINED IN MOVING FORWARD TO
THANK YOU SO MUCH. IN APPRECIATE
EVERYONE'S HARD WORK I IN ALSO
WE ARE SO GRATEFUL THAT SO MANY
VIEW TOOK THE TIME TO BE A TO
COME TO THE CAPITOL TODAY THANK
YOU VERY MUCH. FOR TO KEEP THE
LIBERAL OPEN. YOUR HEART I THINK
YOU.
WOULD YOU BE MOVING FORWARD
WE'RE GONNA I TAKE A ONE MINUTE
BREEDER ONE MINUTE READER TO
ALLOW
TO BE A CLEAR THE ROOM. AYE AND
THEN WE'RE GOING TO BRING UP.
TIM KEVIN DE LEóN
WE'RE GONNA BE TAKING UP OUR
FINAL BILL OF THE DAY AND THEN
WE'RE GONNA ASK THOSE MEMBERS
WHO ARE ABSENT TO BE A TO PLEASE
COME BACK TO COMMITTEE. BUT SO
THAT WE CAN I DO FINAL VOTES IN
CLOSE THE ROLE WERE VERY
GRATEFUL THAT THAT PRESIDENT PRO
TEM DEALIO IS HERE WITH A VERY
ESTEEMED. PANEL HAD TO BE AT A
PRESENT SENATE BILL TWO TWO
SEVEN IMPORTANT BILL IN THESE
CHALLENGING TIMES PRESIDENT PRO
TEM THE FOR SOURCE.
MISTER CHAIR I THINK YOU'RE MUCH
.
COLLEAGUES OF THIS A SENATE
COMMITTEE FOR THE OPPORTUNITY
PRESENTS SENATE BILL TWO TWO
SEVEN. AS YOU ALL KNOW LATE LAST
YEAR AND IN TWENTY SEVENTEEN
REPUBLICANS IN WASHINGTON RUSHED
TO PASS. AN OVERHAUL OF OUR
FEDERAL TAX CODE.
THIS NEW LAW TAX THIS NEW TAX
LAW DELIVER EARLY TARGETS
AMERICANS IN BLUE STATES. AND
COULD CAUSE CALIFORNIANS
ESPECIALLY BILLIONS OF DOLLARS
IN DEDUCTIONS.
IN FACT THE AVERAGE CALIFORNIA
TAXPAYER DEDUCTED OVER EIGHTEEN
THOUSAND DOLLARS AND STATE AND
LOCAL TAXES LAST YEAR ON THEIR
FEDERAL RETURNS. NOW THAT
DEDUCTION IS CAPPED AT A HARD
TEN THOUSAND DOLLARS MEANING
CALIFORNIA TAXPAYERS WILL LOSE
OUT ON THOUSANDS OF DOLLARS. OF
VALUABLE DEDUCTION
SURE ON THEIR FEDERAL TAXES.
SENATE BILL TWO TWO SEVEN.
IT IS DESIGNED TO SHIELD
MILLIONS OF CALIFORNIANS FROM
SIGNIFICANT TAX INCREASES. IT
WOULD CREATE THE STATE FUND THAT
TAXPAYERS CAN CONTRIBUTE TO AN
EXCHANGE RECEIVE A DOLLAR FOR
DOLLAR REDUCTION. IN THEIR STATE
TAXES.
BUT USING THE FEDERAL
FEDERAL CHART WILL CONTRIBUTION
RULES THE TAXPAYER CAN DEDUCT
THAT ENTIRE CONTRIBUTION FROM
THE FEDERAL FROM THE FEDERAL
TAXES. EXACTLY AS THEY WOULD
HAVE UNDER THE STATE AND LOCAL
TAX DEDUCTION THAT THE
REPUBLICANS CAPPED.
IT'S WOULD PROTECT ROUGHLY THREE
MILLION CALIFORNIANS THREE
MILLION CALIFORNIA TAXPAYERS SO
THE BILL TWO TWO SEVEN ALLOWS
TAXPAYERS TO SUPPORT AND FIND
STATE PROGRAMS THEY CARE DEEPLY
ABOUT. SUCH AS EDUCATION FOR
HIGHER EDUCATION SYSTEMS HEALTH
CARE AS WELL AS PUBLIC SAFETY.
WHILE ALSO
PROTECTING MILLIONS OF MIDDLE
CLASS FAMILIES FROM SUBSTANTIAL
FEDERAL TAX INCREASES.
PLEA. THE INTRODUCTION OF THIS
MEASURE HERE IN CALIFORNIA HAS
CREATED MOMENTUM IN WASHINGTON
TO REPEAL THE SALT THE STATE
ILLEGAL THE LOCAL LOCAL TAX.
CAP INCLUDING A BIPARTISAN
PROPOSAL FOR MEMBERS OF NEW
YORK'S CONGRESSIONAL DELEGATION
LED BY REPUBLICAN PETER KING.
THIS UNFORTUNATE REALITY IS THAT
MILLION OF A MILLIONS OF
EVERYDAY HARD WORKING AMERICANS
NOW FACE HIGHER TAXES. AND
THEY'RE LOOKING FOR RELIEF AND
ARE LOOKING TO US AS A
LEGISLATIVE BODY TO PROVIDE THAT
RELIEF FOR THEM.
A WORKING WITH SOME OF THE
NATION'S PREEMINENT LEGAL
SCHOLARS TO MAKE SURE THIS
MEASURE PROTECTS CALIFORNIA
TAXPAYERS HAD PASSES LEGAL
MUSTER. WITH ME TODAY I HAVE
THAT DARIEN SEAN SKI FROM
UNIVERSITY CALIFORNIA DAVIS LAW
SCHOOL. IN JOE BRINKMAN FROM
STANFORD LAW SCHOOL AT STANFORD
UNIVERSITY THEY WILL PROVIDE
BOTH BRIEF REMARKS AND CAN
ANSWER ANY TECHNICAL QUESTIONS
THAT YOU MAY HAVE ON SP TO
SEVEN.
THE CHAIR OF CELS MADAM VICE
CHAIR AND MEMBERS ARE CERTAINLY
ASKS FOR YOUR BIPARTISAN BY
VOTE.
IT'S A MUCH DESERVED IN THE ONLY
LOOKING WITNESSES IN SUPPORT
GERMAN THANK YOU SO MUCH FOR
TAKING THE TIME TO BE HERE AND
HAPPY NEW YEAR.
WELL I WILL JUMP AND I'M JOE
BANKED IN IN THE PROFESSOR THAT
RALPH M. PARSONS PROFESSOR OF
LAW AND BUSINESS AT STANFORD.
LAW SCHOOL. MY COMMENTS REFLECT
A ARTICLE IT'S
FORTY FIVE PAGES THAT I CO WROTE
WITH. MY GOOD FRIEND AND FORMER
STUDENT DARIEN CHANCE SKI AS
WELL AS OUR. PROFESSORS VENN
TREAT FROM DAVIS LAW SCHOOL A
GOLDEN FROM STANFORD LAW SCHOOL
DAMAGE FROM THE UNIVERSITY OF
ILLINOIS LAW SCHOOLS STARK. FROM
UCLA AND HAMEL FROM THE
UNIVERSITY OF CHICAGO.
THE AS OF THE SENATOR MENTIONED
THE NEW BILL MAKES IT HARD TO
FIND AND STATE GOVERNMENT
BECAUSE. OF OUR PRESENT WAY OF
FINANCING IT NO LONGER GENERATES
THAT DEDUCTION EIGHT USED TO THE
NOBEL ALSO TAKES LOTS OF MONEY
OUT OF CALIFORNIA TAXPAYERS
POCKETS IN A FACT THEY ARE
PAYING MOST OF THE COST ALONG
WITH SOME OTHER. FOLKS OF THIS
BILL HOT.
THE BILL THAT IS PROPOSED HERE
REPRESENTS AN INTUITIVE
INNOVATIVE WAY TO START THINKING
ABOUT FINANCING STATE GOVERNMENT
AT ITS CORE. THE NOTION IS THAT
TAXPAYERS WILL BE ENCOURAGED TO
MAKE CHARITABLE CONTRIBUTIONS
WITH UNDER STATUTE ARE
DEDUCTIBLE. AND THAT WILL
SATISFY.
SOME OR ALL OF THEIR TAX
LIABILITY THAT SOUNDS LIKE.
UNUSUAL FOR US UNTHINKABLE
PERHAPS BECAUSE WE'RE NOT USED
TO IT BUT IT'S WE POINT OUT IN
THIS PAPER THERE'S OVER A
HUNDRED CREDITS THAT RESEMBLE
THIS QUITE CLOSELY THEIR ENACTED
BY THIRTY THREE STATES. THE RULE
IN TERMS OF JUDICIAL DECISION
AND I ARISE PRONOUNCEMENTS.
IS A RULE THAT WE DESCRIBE HIS
FULL DEDUCIBILITY WHAT THAT
SAYS IS IF YOU QUALIFY SEE
CHARITABLE CONTRIBUTION UNDER
THE FEDERAL STATUTE IN A. GIFT
TO THE STATE STATUTORY QUALIFIES
YOU GET THAT AND YOU DON'T HAVE
TO REDUCE THAT CONTRIBUTION BY
THE BENEFIT YOU MIGHT GET FROM A
STATE THROUGH A DEDUCTION OR
DEDUCTION AND SOME OF THE FORMS
OF CREDIT.
A WHITE PAPER GOES TO SOME
POLICY JUSTIFICATIONS WHY WE
MIGHT HAVE A ROLE LIKE THAT I'M
ONLY GONNA MENTION ONE HERE
WITHOUT A RULE PRACTICAL
ADMINISTRATION BECOMES VERY
DIFFICULT TO THAT SUPPORT TO
SIMPLE FULL DEDUCTIBILITY ROLE.
RIGHT HAPPY TO TALK ABOUT THOSE
JUSTIFICATIONS IN Q. IN A.
EVEN THOUGH THIS BILL FITS
WITHIN EXISTING LAW ARE MY.
SHAKE MY A GOOD FRIEND DURING
pIS GOING TO TALK ABOUT WAYS
THAT
WE BELIEVE THIS BILL. COULD BE
AMENDED TO BE EVEN STRONGER AND
MORE RESISTANT TO JUDICIAL OR
LEGISLATIVE ATTACK.
THANK YOU HE SAID IT'S NOT GOING
TO BE HERE SO.
ONE ADDITIONAL POINT TO NOTE ON
THE FOR A TRANSITION TO WAYS
THAT THE BILL MIGHT BE AMENDED
TO BE EVEN STRONGER IS THAT.
REMEMBER. HOME UNDER THE
ALTERNATIVE MINIMUM TAX MILLIONS
OF TAXPAYERS ALREADY IN THIS
POSITION WHERE THEY COULD DEDUCT
THEIR CHARITABLE DONATIONS BUT
NOT THEIR STATE AND LOCAL TAXES
AND SO THE WIDESPREAD USE OF
THESE CREDITS. ALREADY GAVE
DISADVANTAGE TO MILLIONS OF
TAXPAYERS GOING BACK DECADES SO
DESPITE THIS RIGHT DESPITE
THOSE.
THEY HAVE LONG STANDING IN
IMPORTANCE OF THIS RULE AND THE
MILLIONS OF TAXPAYERS IT'S
AFFECTED. THIS BILL CLEARLY
WOULD IMPLEMENT A PROGRAM LIKE
THIS HELD LARGER SCOPE THAN IN
THE PAST AND IS LIKELY TO DRAW
ADDITIONAL ADMINISTRATIVE
SCRUTINY POSSIBLY JUDICIAL
SCRUTINY IMPOSSIBLE.
CONGRESSIONAL ACTION AND SO HOW
CAN THIS BILL TIME BEAST
RENDON'S.
TO BE EVEN BETTER AND MORE
LIKELY TO WITHSTAND THE SCRUTINY
WE'VE IDENTIFIED TWO MAIN
PASSED.
ONE WOULD BE TO REDUCE THE SIZE
OF THE CREDIT BELOW ONE HUNDRED
PERCENT
THOUGH THERE ARE SOME STATE
PROGRAMS THAT DO UP HUNDRED
PERCENT CREDITS.
MOST OF THEM DON'T AND SO ONE
SIMPLE REASON TO PRODUCE THE
CREDIT WOULD BE TO MAKE OUR
PROGRAM IS M. OF THOSE OTHERS.
ANOTHER REASON GOING BACK TO THE
ADMISSIBILITY POLICY
JUSTIFICATION FOR THE FULL
DEDUCTIBILITY RULE IS THAT A
HUNDRED PERCENT CREDIT MAKES IT
A LOT EASIER FOR THE IRS TO
ADMINISTER DEAN THIS CREDIT BUT
NOT DOING ENOUGH. OTHER CREDITS
THIRD AND MOST SUBSTANTIVELY AND
MOST IMPORTANTLY REDUCING THE
CREDIBLE A HUNDRED PERCENT MEANS
A CHURCH SUBSTANTIVELY CHANGING
THE POSITION OF OCT TAXPAYER.
AND THE STATE. TAXPAYER WILL
STILL BENEFIT ON.
BECAUSE THE AMOUNT OF THE CREDIT
WOULD STILL LEAVE A SIGNIFICANT
BENEFIT BECAUSE OF THE DUCT
ABILITY UNDER THE FEDERAL INCOME
TAX A PENDING ON THE MARGINAL
RATE OF THE TAXPAYER. BUT THE
STATE WOULD ALSO NOT A CERTAIN
AMOUNT OF MONEY AND THAT IS A
SUBSTANTIVE IMPORTANT CHANGE.
SECOND.
TYPE OF AMENDMENT WE THINK THAT
THE COMMITTEE SHOULD CONSIDER
WOULD BE TO ADD SOME VOLUNTARY
COMPONENTS PATRONS OF DIRECTING
THE ADDITIONAL REVENUE NOW. THE
AND THE REASONS FOR THIS ONE IT
RESEMBLES THESE OTHER PROGRAMS
MORE SECOND MORE SUBSTANTIVELY
IT IS ACTUALLY CHANGING FACTS ON
THE GROUND IN TERMS OF WHERE
MONEY GOES IN TERMS OF.
CITIZEN PARTICIPATION IN THE
PROCESS OF SPENDING MONEY WHICH
IS IMPORTANT WE'RE NOT
SUGGESTING THAT THIS THAT ALL
THE CREDIT BE ALLOCATED IN THIS
WAY. PRESUMABLY WOULD BE LIMITED
TO STARTED TO CONNECT INCREMENTS
OR EVEN A PORTION OF THE NET
INCREMENTAL OF ADDED MONEY ON
BUT SOME VOLUNTARY COMPONENT WE
THINK WOULD BE A SIGNIFICANT
IMPROVEMENTS WITHOUT WILL STOP
AND TAKE YOUR QUESTIONS THANK
YOU.
THANK YOU SO MUCH WRITTEN WITH
ACTIVE NOW BILL TO SEE IF THERE
IS ANYONE HERE IN THE AUDIENCE
THAT WOULD LIKE TO BE TO COME
SPEAK IN SUPPORT OF THE BILL. IF
THERE ARE IF YOU CULD PLEASE
COME FORZA YOUR FIRST AND LAST
NAME IN YOUR POSITION IN
SUPPORT.
WELCOME. THANK YOU MISTER
MEMBERS JIM GROSS ON BEHALF OF
THE CALIFORNIA SOCIETY OF
CERTIFIED PUBLIC ACCOUNTANTS WE
DO NOT HAVE A POSITION ON THE
BILL AT THIS POINT TIME WE
CERTAINLY APPRECIATE.
THE EFFORTS OF THE PRO TO HIM
TO TRY TO ADDRESS THIS ISSUE.
THE CPA'S R. SHOULDN'T BE
SITUATED WITH LEGISLATORS WITH
RESPECT TO THE ISSUE O
REPRESENTATION OF TAXPAYERS.
THEIR JOB IS TO ENSURE THE
TAXPAYERS LAW DO PROPERLY TOP
PREPARE THEIR TAX RETURNS DEAL
WITH THE ISSUES THAT ARISE FROM
LEGISLATIVE ENACTMENTS.
OBVIOUSLY THIS IS UNUSUAL
APPROACH
BASED UPON ACTIONS TAKEN AT THE
FEDERAL LEVEL.
WE BELIEVE THERE ARE A VARIETY
OF ISSUES AND I'M SURE THE
PROFESSOR SHOULD WOULD AGREE.
WITH RESPECT TO HOW EACH
TAXPAYER MUST DEAL WITH.
THEIR USE OF THIS AND HOW IT
FITS INTO THE LARGER PICTURE. OF
THEIR TAX LIABILITY WE WOULD
VERY MUCH LIKE TO WORK WITH THE
LEGISLATURE AND THE PROGRAM AS
IT MOVES FORWARD THERE ARE A LOT
OF IDEAS WHILE WE APPRECIATE.
THE NOTION OF VOLUNTARY AND AND
VARIOUS OTHER APPROACHES BUT
CERTAINTY IS PROBABLY ONE OF THE
MOST IMPORTANT ASPECTS OF
REPRESENTING TAXPAYERS.
ITALY GIVEN THE POLITICALLY
CHARGED NATURE OF WHAT WAS DONE
AT THE CONGRESSIONAL LEVEL SO WE
ARE NOT AVAILABLE WE WANT TO
WORK WITH EVERYBODY ON THIS I
THINK THERE BE A LOT OF
INNOVATIVE IDEAS I KNOW THE
CHAIR HAS BEEN THINKING ABOUT. A
LOT OF DIFFERENT APPROACHES WE
FEEL TO IMPORTANT HAVE THOSE WHO
DIE ON A DAY TO DAY BASIS
REPRESENT TAXPAYERS BE PART OF
THE DISCUSSION THANK YOU THANK
YOU SO MUCH FOR STRESS WOULD
LIKE ME TO SEE IF WE HAVE ANYONE
ELSE TO LIKE HERE SPEAK IN
SUPPORT OR. MAY HAVE SOME
SQUISHING YES.
THANK YOU SO MUCH.
BUT I WOULD LIKE TO TO SEE IF
ANYONE IS HERE TO SPEAK OPPOSED
TO PLEASE ADVANCED THIS TIME THE
MICROPHONE.
GREAT THIS FREE BACK TO
COMMITTEE TO BE ABLE HAVE
QUESTIONS OR COMMENTS FROM THE
COMMITTEE. THAT WE HAVE A MOTION
ON THE FLOOR IN A QUESTION BY
MISTER MORE LOCK COULDN'T
SIMILAR.
THANK YOU MISTER CHAIR.
I HAVE A FEW QUESTIONS A LOT A
LOT OF THE MECHANICAL BECAUSE I
AM A. CPA.
I PRACTICE FOR EIGHTEEN YEARS
TWO DECADES.
IN MY FIRST PER THIS IS NOW MY
FOURTH SO I'M. A LITTLE BIT AWAY
TWO DECADES AWAY FROM FROM
PREPARING TAX RETURNS.
THE JANUARY IS ALWAYS KIND OF A
HOLLOW HERE WE GO AGAIN TAXIS
AND.
SO IF IF IF IF A TAXPAYER MAKES
A CONTRIBUTION TO THE CALIFORNIA
EXCELLENCE FUND.
IS THAT A SEGREGATED.
FUND.
THAT. WILL HAVE.
DIFFERENT USES WHICH WOULD
SEPARATED FROM THE GENERAL FUND.
WELL I THINK IT I THINK RIGHT
NOW. IT MIGHT NOT BE BUT OF
COURSE THE FEDERAL STATUTE
DOESN'T REQUIRE THAT.
GIVING MONEY TO AN INCH IT TO
THE STATE AN INSTRUMENTAL. THE
INSTRUMENTALITY OF THE STATE
WITH BOTH WORK I THINK UNDER
THE.
.
JUSTIN'S.
AYE DERIAN MADE.
THERE MIGHT BE.
SOME PORTION OF THIS IT WOULD BE
SEGREGATED FUNDS WITH
REIMBURSEMENT TO THE GENERAL
FUND.
THAT THE MY UNDERSTANDING OF
HOW IT WOULD WORK.
BECAUSE I'M USING THE MODEL THAT
WAS SET PROVIDED.
BY.
S. B. SEVEN NINETY EIGHT.
WHERE YOU DID THE CAL GRANT?
THAT PROGRAM SO IF IF I A IN
THIS IS THAT VOLUNTARY I I WANT
TO GIVE TO CAL GRANTS LIKE GIVE
IT TO THE STATE IT'S.
DESIGNATED SPECIFICALLY RIGHT
CAL GRANTS.
AND YOU DID SOME.
FINANCING TO MAKE SURE IT ALL
WORKED OUT YET BUT NOW WE'RE
GONNA TALK ABOUT REAL DOLLARS
RAISES FEDERAL CAL GRANTS WHAT
THAT'S BEEN DOING.
BUT THIS PROPOSAL WOULD COULD BE
VERY.
DRAMATIC INTENT AND SIGHS IF
WE'RE TALKING ABOUT THE ONE
PERCENT SUBDISTRICT IT TO THE
MECHANICS OF IT BECAUSE IF IT'S
A. IF IT'S A DESIGNATED KEPT.
RESTRICTED. THEN IT DOESN'T IF
IT WOULD BE SEPARATE FROM THE
GENERAL FUND I'M TRYING TO
FIGURE OUT WHAT WHAT AS AN
ACCOUNTANT WITH THE BUDGET WOULD
LOOK LIKE.
WHAT WOULD I HAVE?
YOU KNOW I'VE GOT.
THAT THE C. E. F. I'VE GOT THE
GENERAL FUND AND THEN I'VE GOT.
THE SCHOOL BUDGET.
RIGHT ASSUME MORE LIKE A THING
WHICH REFER INTO FOR EXAMPLE I
THINK WHAT YOU'RE TRYING TO
VISION IS.
IF WERE TO BE SUCCESSFUL IN AND
PROVIDE TAX RELIEF TO TO TO
CALIFORNIANS.
UPON THEIR.
CHOI WILL CONTRIBUTION.
TO THE CITY CALIFORNIA WOULD GO
TO IT IF THE GENERAL STATE FINE
OR THE BE SOME SORT OF LOCK BOX
FOR EXAMPLE A. DESIGNATED.
SEGREGATED IF YOU WILL.
.
THE.
ACCOUNT THAT IT THAT IS OPEN TO
CAPTURE THESE TYPES OF OUR.
BUT CONTRIBUTIONS WERE ACTUALLY
WORKING THAT PROCESS ALL RIGHT
NOW I WOULD CHARACTERIZE THE
DOLLARS THAT ARE BEING MADE BY.
THE INDIVIDUAL TAXPAYERS A
CALIFORNIA.
TO FIND TO HELP FUND CAL GRANT
PROGRAMS AS REAL DOLLARS AND ARE
CORRECT IN STATING THAT.
IF
IF SUCCESSFUL IN TERMS OF THE
PASSAGE OF THE MASTER A TO BUY
PROVIDE RELIEF FOR TAXPAYERS.
IN OF SUCCESSFUL YOU KNOW
OBVIOUSLY IN TERMS OF OUR REACH
OUT SO INDIVIDUAL TAXPAYERS ARE
CONSCIOUSLY AWARE. OF THIS
OPTION FOR THEM THAT WOULD
PROVIDE IN THE RELIEF.
IT WOULD BE.
WE WILL BE RECEIVING A.
A STREAM OF REVENUE AYE IN MASS
IN THAT MECHANICALLY HOW WITHOUT
FUNCTION YOU KNOW THE WAR
ACTUALLY WORKING THAT OUT RIGHT
NOW WITH THE VARIOUS OPTIONS AND
FIGURE OUT THE DIFFERENT
MODELING RIGHT NOW BUT.
KNOWING.
YOUR EXPERTISE AND YOUR
FINANCIAL I COMMEND THAT WE SEE
AS A. AS A AS TREASURER AND
BOARD SUPERVISORS WASHINGTON.
THE VERY A COMPLEX AND DIFFICULT
TIME AND IN AND SICK HISTORY
DURING THE BANKRUPTCY OF ORANGE
COUNTY.
BUT FEEDBACK THAT YOU CAN
PROVIDE FOR US WOULD BE.
VERY WELL TAKEN.
BUT WE GET PROFESSORS ARE GOING
TO HAVE A LITTLE FUN SO. SO WE
BOTH KNOW THAT ONE PERCENT OF
OUR POPULATION IS PROVIDING
FIFTY PERCENT OF THE PERSONAL
INCOME TAX LET'S SAY THAT HALF
OF THEM SAY. WE'RE GONNA SEND A
CHECK INTO THE SEAT YEAH.
AND SO THAT'S GOING TO BE A
SIGNIFICANT AMOUNT OF OF MONEY.
AND SO IF IT'S DESIGNATED IN
SEPARATE.
AS OPPOSED TO SUPPLEMENTAL
BECAUSE OF ITS SUPPLEMENTAL ITS
GONNA HURT YOUR ARGUMENT I WOULD
THINK.
IF YOU'RE JUST JUST. BECOMES A
CONTRIVANCE SO THERE'S GOTTA BE
SOME.
SOME KIND OF.
DIFFERENCE AND IF THAT'S THE
CASE THEN WHAT DOES THAT DO TO
SAY PROP NINETY EIGHT.
IS ALL BUT CERTAIN PROP NINETY
EIGHT FUNDING.
IS IT DECREASED BECAUSE OF THIS
CDF AND I'M.
FOR A YOU CAN YOU ADDRESS THAT.
CENTER DE LEON IN IT WITH YOUR
CAL GRANTS.
BILL I I JUST.
IS THIS BEING ADDRESSED IN THIS
BILL.
MONEY WOULD DOT DECREASE THE
DECREASE SUCH A STATE TO
PROPOSITION NINETY EIGHT IN FACT
IT WOULD DO QUITE THE OPPOSITE
IT WOULD ACTUALLY INCREASE.
.
PROP NINETY EIGHT PROP NINETY
EIGHT WE HAVE OBVIOUSLY ZENO'S
AUTOPILOT THE PERCENTAGE
THE COMES THE GENERAL FUND IS
DEDICATED TO TO PROP NINETY
EIGHT OKAY TO TWELVE AS WELL AS.
KEY TO FOURTEEN COMMITTEE
COLLEGES SO THAT IT WOULD%
ACTUALLY DO THE QUITE THE
OPOSITE.
MONIES WOULD INCREASE BEFORE
PROP NINETY EIGHT. THE ELLIPSE
ABILITY WHICH WE HAVEN'T
ACTUALLY.
IT WORKED OUT YET RIGHT NOW A IT
IS POSSIBLE WHEN WE MEN THE
MEASURE.
NIXON THE OPPORTUNITY.
THAT'S AVAILABLE TO MANDATE.
TO
TO.
FOR THE TAXPAYER DOES DESIGNATE
WHETHER IT'S HIGHER EDUCATION
WHAT'S UNIVERSITY CALIFORNIA
WHAT'S CAL STATE UNIVERSITY
SYSTEM WITH ITS HEALTH CARE WITH
THIS ISSUE OF PUBLIC SAFETY.
THAT THEY WOULD LIKE THEIR
CHARITABLE CONTRIBUTION.
TO BE DEDICATED YOU KNOW TO THE
SPECIFIC YOU KNOW.
PROGRAMS OR POLICIES THIS IS
SOMETHING THAT WERE ACTUALLY
TRYING. TO DEVELOP RIGHT NOW AND
PROVIDE CREATIVE OPTIONS IF YOU
WILL UP FOR THE.
FOR INDIVIDUAL TAXPAYERS A
CALIFORNIA AT THE IN THE DAY.
WHEN THIS IS DONE THE TAXPAYER
HIMSELF HERSELF IS MADE WHOLE AS
WELL AS THE STATE OF CALIFORNIA
SO BECOMES A WIN WIN SITUATION
BUT GETTING DOWN MORE INTO THE
WEEDS AND FROM. WORKING AT THE
MECHANICS THAT'S WHAT WE'RE
ACTION THE PROCESS OF DOING
RIGHT NOW IN REAL TIME.
WELL SINCE I SIT ON BUDGET AND
FISCAL REVIEW ON SUB ONE WHICH
OVERSEES R. UNIVERSITIES IN OUR
SCHOOLS I WANNA. I GUESS LIKE I
GOTTA BE PROTECTED THERE IS I
WANT TO MAKE SURE THAT THE BILL.
DOESN'T DISRUPT PROP NINETY
EIGHT THE NEXT QUESTION I HAD
IS.
SO YOU HAVE A LOT OF HIGH.
INCOME EARNERS.
AND THEIR TAXES ARE JUST DONE
THROUGH WITH HOLDINGS SO IT'S A
W. TO.
DO I.
DOES A TAXPAYER HAVE TO MAKE IT
CHECK TO THE C. E. F..
IF SO THEN HOW IF THEY'RE READY
HAVE MAYBE ALL OF THE HUNDRED
PERCENT OF THEIR. TAXES RETAKING
CHARACTER WITH HOLDINGS.
DID IT AND WRITE A SEPARATE
CHECKING TO GET A REFUND OF
THEIR W. TWO WITHHOLDINGS SIR.
WHAT ARE THE MECHANICS OF THAT?
I I IMAGINE SENATOR THAT.
ONE OPTION FOR A LOT OF HIGH
INCOME TAXPAYERS SHOULD BE DO
JUST THAT WITHHOLDING SINCE
YOU'RE GOING TO BE MAKING.
POTENTIAL CONTRIBUTIONS DURING
THE YEAR.
.
SO I WOULD THINK THAT WOULD BE
THE MAJOR OPTION THAT PEOPLE
WOULD DO OTHER. MEMBERS
SO I'D SAY THAT YOUR EMPLOYER
I'M EXEMPT BECAUSE I'M GONNA.
CUT A CHECK YEAH SOMETHING IN
THE OECD WOODEN WE WORK OUT
SOMETHING LIKE THAT.
FOR THOSE TAXPAYERS AND I
APPRECIATE THE COMMENTS.
FROM.
BUT THE REPRESENTED THE CPA SO.
HELPLESS TAX LAWYERS GET THAT
RIGHT.
WITHIN.
LET'S SAY THAT INSTEAD OF MY
EMPLOYER TAKING OUT OF THOUSAND
A MONTH.
FOR TWELVE THOUSAND I I TELL
THEM EXEMPT AND I WRITE A CHECK
AT THE END OF THE YEAR FOR
TWELVE THOUSAND TO THE C. E. F..
AND I'M GOOD.
BUT. NOW THE STATE HASN'T GOTTEN
THAT CASH.
FOR ELEVEN MONTHS RIGHT SO NOW
MY CASH FLOW AT THE STATE LEVEL.
GETS A LITTLE AWKWARD BECAUSE OF
REYES WAITING TILL THE END OF
THE YEAR.
BECAUSE OF THE TIME VALUE MONEY
TO WRITE THAT CHECK.
AND BECAUSE IT'S A TWELVE
THOUSAND DOLLAR CREDIT ON THEIR
FIVE FOURTEEN FORGIVE ME FOR
GETTING INTO THE WEEDS BUT THIS
IS. HOW WE THINK?
SO SO NOW I'M I'M GOOD I PAID IN
FULL. BUT EVERYONE ELSE IS
MAKING QUARTERLY PAYMENTS ON
THEIR TAX IF THEIR SELF EMPLOYED
AND THEY GET PENALIZED IF THEY
DON'T MAKE THOSE PAYMENTS BUT I
WOULDN'T.
BECAUSE I WAITED TILL THE END OF
THE YEAR.
WELL I THINK WHAT YOU'RE
POINTING OUT IS IT ANY
ADJUSTMENTS WOULD HAVE TO BE
SENSITIVE. TO THE TIME THEY
CHECK IS. PUT IN THE MAIL. ODD.
AND IT'S AN IMPORTANT POINT
ALTHOUGH THE OVERALL THIS COULD
BE A WIN WIN FOR BOTH THE STATE
WHICH IF THE CREDIT IS LESSEN ON
PERCENT IS GOING TO GET SOME
MORE MONEY. IT THAT DOESN'T
VICHY EIGHT YOUR POINTS BUT TO
GIVE SOME ASSURANCE FOR THE
STATE AND IT WOULD BE A WIN FOR
THE TAXPAYERS TO ALBEIT SOME
TAXPAYERS WOULD HAVE TO COME UP
WITH THE OTHER CHECK AND IT'S
KIND OF A PAIN. SO I DON'T WANT
TO MINIMIZE THAT BUT IT'S WHAT
WE THINK WE COULD DO TO HELP
CALIFORNIA TAXPAYERS.
AND TO THE EXTENT THAT THIS
QUESTION INVOLVES STATE CASH
FLOW IT SEEMS THAT PARTISAN
TRANSITION PROBLEM RIGHT AFTER
THE FIRST HEARD THE STATE WILL
HAVE A BIG LUMP OF MONEY AT THE
END OF THE YEAR THAT IS SO WE
CAN JUST. ORGANIZED ITS CASH
FLOW BUT IN GENERAL AS YOU KNOW
THE LOCAL LEVEL PROPERTY TAXES
COME INTO BITS AND AS A LOCAL
CASH FLOW PROBLEM THAT'S MANAGE
WITH SHORT TERM NOTES SO IF
THAT WAS A ONE YEAR INITIAL
TRANSITION PROBLEM CAUSED BY
THIS THERE IS A SOLUTION OUT
THERE THAT WOULD BE
PROHIBITIVELY EXPENSIVE.
SO THE OTHER QUESTION I DIDN'T
SEE IT IN THE END HIM IN THE
DOCUMENTS.
IF IF I MADE A TWELVE THOUSAND
DOLLAR CONTRIBUTION.
IN THAT WOULD BE ON MY FEDERAL
FORM TEN FORTY SCHEDULE A.
WOULD THAT ALSO BE ON MY FIVE
FORTY SCHEDULE A.
I TO GOOD QUESTION IT
REALLY-DEPENDS ON HOW THE CREDIT
IN
DEDUCTION WORK.
BECAUSE WHAT YOU'RE WHAT YOUR
QUESTION POINTS OUT IS THERE'S
TWO BENEFITS THE STATE CAN GIVE
THERE'S A CURRENT BENEFIT WHICH
IS YOU GONNA DO THAT ON YOUR
STATE TAXES OF FIVE FORTY. AND
NOW WE'RE TALKING ABOUT AN
ADDITIONAL CREDIT WE'VE GOT TO
COORDINATE THEM AND DECIDE WELL
YOU HAVE TO DECIDE WHAT THE
RIGHT NUMBER IS CALLED OFF. AND
WHEN YOU GET THE RIGHT TOTAL
THEN YOU CAN DECIDE IF WE'RE
GOING TO KEEP. THE EXISTING
DEDUCTION AND HAVE A SMALLER
CREDITS OF THE EFFECTIVE THAT
WOULD BE.
THE DEGREE YOU ALL WANT.
SOME I I LOOK AT OUR REVENUES AT
SAY WE HAVE.
FORTY BILLION IN OTHER REVENUE
HAVE EIGHTY BILLION IN PERSONAL
INCOME TAX SO.
HALF OF THAT COMES FROM ONE
PERCENT THEY PAY A CONTRIBUTION
TO THE STATE.
AND THEN IF IT'S DEDUCTED ON THE
STATE RETURN AS WELL. THEN THE
STATE STANDS TO LOSE A PRETTY
SUBSTANTIAL AMOUNT OF REVENUE.
BECAUSE WE'VE GIVEN THE
DEDUCTION.
TO ARE CELLS ON THE TAX RETURN
IN A JUST DOING SOME BACK OF THE
ENVELOPE.
CALCULATING THAT COULD BE
SIGNIFICANT SO NOW WE GOTTA.
LOOK AT HOW DO WE MITIGATE THAT
LOSS OF REVENUE.
WELL I THINK YES BETSY I THINK
THAT WHEN YOU LOOK AT THOSE
BOTTOM LINE NUMBERS THAT'S GOING
TO HELP YOU. CHIDES WHAT YOU
WANNA THINK THE APPROPRIATE
LEVEL OF SUPPORT HAS.
WE HAVE A PROP SIXTY THREE WHICH
TAXES THOSE THAT MAKE A MILLION
OR MORE. DEFINED MIDDLE HEALTH
SERVICES BUT IF I CAN GET A
PRETTY SIGNIFICANT DEDUCTION.
ON MY SCHEDULE I I'M GONNA GET
BELOW THE MILLION.
TAXABLE INCOME SO NOW THAT
PROGRAM. SUFFERS AS WELL SO IT
MAY BE AS WE.
AS GOOD AS IF THIS MOVES TOWARD
MAYBE WEWE LOOK AT THE
RAMIFICATIONS ON HOW IT. AFFECTS
OTHER.
.
ISSUES THOUGHT THEY OWN THE
STATE'S I GUESS MAYBE THE
CLOTHES MISTER CHAIR.
IF IF WE START.
DILUTING. WHAT IS A CONTRIBUTION
AT THE STATE LEVEL?
AND.
THE FEDERAL GOVERNMENT WATCHES
WHAT WE'RE DOING WHICH IS.
FOR A LOT OF PEOPLE UBER SINGLE
KINDS OF. ACTIVES DESCRIBE FOR
THIS BILL.
BUT IF THE FEDERAL GOVERNMENT
SAYS OKAY WE'VE ALREADY RAISED
THE.
STANDARD ELECTION A TWENTY FOUR
THOUSAND ONE WE JUST DO IT EVEN
MORE.
AND FOR WHAT LET'S JUST NOT EVEN
ALLOW YOU TO DEDUCT
CONTRIBUTIONS AT ALL IT'S JUST.
YOU KNOW FOR THE WHOLE COUNTRY
THEN THIS THING SHUTS DOWN
IMMEDIATELY AND I'M JUST
WONDERING IF WE ARE
JEOPARDIZING.
A NATIONAL TAX STRUCTURE BY
TRYING TO BE.
CLEVER OR CREATIVE WHATEVER SEE
WHAT WE WANT TO USE.
AND THEN.
I'M ALREADY NERVOUS ABOUT THIS
TAX BILL AND HOW IT WILL AFFECT
NONPROFIT ORGANIZATIONS BECAUSE
IF YOU CAN NO LONGER DEDUCT YOUR
CONTRIBUTION THAT'S GOING TO
HAVE SOME. IMPACT.
ON WHETHER OR NOT YOU MAKE A
CONTRIBUTION SOMETHING. I I'D
I'D WANT TO BE CAREFUL HOW WE.
.
HOW YOU DRESS?
THIS THING IS SO MAYBE I'VE
MISTER CHAIR YESTERDAY PRESENTED
A BILL.
AND I WAS.
.
I WAS CRITICIZED BECAUSE THE
BILL WAS NOT SURGICALLY PRECISE
ON FIXING.
A PROBLEM AND UNFORTUNATELY MY
COLLEAGUES DIDN'T WANNA LET ME
MOVE FORWARD TO MAKE AMENDMENTS.
ON IT'S.
AND IT WAS EVEN YOU KNOW. GIVEN
CALL BEING SPIRITED BECAUSE I
WAS FIGHTING FOR LAND OWNERS OF
MOBILE HOME PARKS PEOPLE THAT
ACTUALLY WOULD. MAYBE.
I MAKE CONTRIBUTIONS FOR THEIR
INCOME TAXES SO IT'S IT'S SORT
OF FUNNY THAT I WAS GOING AFTER
CHEATERS HOW DARE I.
BUT TO.
THIS BILL IS NOWHERE TO. CLOSE
TO BEING SURGICALLY PRECISE SO
THAT'S WHERE I'M HAVING MAYBE
I'LL A WOUND HERE MISTER
PRESIDENT PRO TEM.
BUT.
.
SKINNER LAURIE ONE AFTER THE
LAST YEAR FOR GOING INDEPENDENT
MILLIONAIRES AND SAID BOY THANKS
FOR TAKING CARE OF THOSE AT ALL
A YOU KNOW THE YACHT OWNERS.
IT WAS. A FUN TIME SO IT'S.
CRITICAL BUT IT'S SORT OF FOR
ITS KIND LIKE IT'S RIDGE THAT
YOU GUYS ARE TRYING TO HELP THE
WEALTHY NOW IN IN N CALIFORNIA
SO. WELCOME ABOARD MAYBE TO.
IT USED.
SO.
I WOULD THAT AYE I GUESS TO MAKE
A COMMENT TORY AYE A YOU KNOW
THE THANKS FOR BEING WORRIED
ABOUT FACING HIGHER TAXES THAT
DIDN'T SEEM TO BE THE ATTITUDE
LAST YEAR.
IN CALIFORNIA SO I'M. WITH THAT
GUY I'M HAVING REAL DIFFICULTY
AS ONE PRACTITIONER FORMER
RETIRED.
WITH THE CONTRIVANCE COMPONENT
OF THIS SINCE I'M GONNA HAVE A
TOUGH TIME.
WITH THIS BILL BUT THANK YOU
MISTER CHAIRPERSON ALLOWING ME
TO. HAVE A LITTLE FUN.
WITH THE PROFESSORS. AS BOOKENDS
FOR THE PRESIDENT PRO TEM.
THANKS MUCH SUMMER LOCK AT WE
HAVE THE* LIKE ME TO MAKE A
FEW COMMENTS MISTER PER PARTY
WOULD YOU LIKE TO RESPOND TO
WHAT IS GOING TO SAY INTERNET DO
APPRECIATE.
AYE AYE GOOD FRIEND FROM ORANGE
COUNTY'S.
REMARKS AND TO RESPECT VERY
MUCH OTHER WE ARE YOU KNOW WE
FIND OURSELVES.
AND.
WITH OPPOSITE PERSPECTIVES AND
AND VIEWPOINTS ON A VARIETY OF
ISSUES OF BOYS SO MUCH ADMIRED.
IS HIS BUSINESS FISCAL ACKERMAN
NO.
WHICH IS A DIFFERENT APPROACH
AND HOW WE GO ABOUT DOING IT.
CLUB BUT I WOULD SAY IS THAT.
BUT IT WOULD IN THE SUIT
CHARACTERIZES AS THOSE
INDIVIDUALS WHO BENEFIT. FROM
THIS.
AT SPEED
TWO TWO SEVEN AS QUOTE UNQUOTE
BEING RICH BUT RATHER YOU KNOW
THOSE FROM THE MIDDLE CLASS.
I AS WELL IN FACT A LARGE NUMBER
OF MIDDLE CLASS FOLKS WHO.
DO USE THE ASSAULT THESE
AND LOCAL TAX DEDUCTION.
FEDERAL ON THE FEDERAL RETURNS.
THEY WOULD BENEFIT. GREATLY OT
WHAT REGARDS NONPROFIT AGENCIES.
.
ONCE A THREE CENTRAL
CONTRIBUTIONS.
BECAUSE OF THE ALMOST EVEN
SERRATION OF THE SALTS.
BY THE.
BY THE CONGRESS AND BY THE
WHITE HOUSE. FUND BILL HAD
BUILT.
VISUAL TAX PRISON CALIFORNIA
WATCH HAVE LESS MONEY.
TO CONTRIBUTE
TO NONPROFIT ORGANIZATIONS ON
THE IDEA THAT THE CONGRESS A
STATUTORILY.
MAY ELIMINATE THE CHART WILL
CONTRIBUTIONS ALTOGETHER.
AT THE NATIONAL LEVEL THE IT
SEEMS TO ME ALAMEDA.
A LITTLE FAR FETCHED OR A VERY
MUCH FOR FRIENDSHIP QUITE
HONESTLY TOM.
THERE'S MANY A TROUBLE
CONTRIBUTIONS
WELL FOLKS ON THE LEFT FOLKS ON
THE RIGHT OF.
BETWEEN THE PEOPLE OF ENJOYED
HISTORICALLY GIVING TOM IT'S
BEEN
PART OF THE HISTORY TRADITION.
PART OF OUR CULTURE A AND IN
THIS NATION I DON'T THINK THAT'S
GONNA EVER BE THE CASE FOR YOU
KNOW.
THAT THE CONGRESS STATUTORILY
WILL EVER ELIMINATES.
.
FIVE OH ONE C. THREE CHARITABLE
GIVING TO.
TO NONPROFIT AGENCIES SO THAT
WAS JUST A.
MYAT MIGHT MY COMMENTARY BUT
AGAIN I RESPECT VERY MUCH.
.
YOUR ACKERMAN AND OVER A
VICIOUS AS
BUT THANKS TO THE FISCAL ASPECTS
OF ALL OF THE FUN MAGENTA FROM.
THANK YOU VERY MUCH JUST PRETEND
MEDI BY SHARE THANK YOU THANK
YOU MISTER I'M CHAIRMAN. AND
CENTER PRO TEM I'VE I'VE GOT A
FEW CONCERNS IN SOME QUESTIONS.
A. I KNOW THAT I'M SENATOR
MORLOCK MENTIONED ONE OF THEM
BUT.
I JUST WENT TOUCH BASE BACK ON
IT WITH IN REGARDS PROP NINETY
EIGHT OR EVEN THE RAINY RAINY
DAY FUND. ON I KNOW YOU STATED
THAT.
DID ASHES SHOULD INCREASE PROP
NINETY IN NOT DECREASE IT.
WOULD YOU CONSIDER A PROVISION
LIKE YOU DID IN YOUR SB SEVEN
NINE EIGHT. AND THAT YOU ENACTED
FOR THE COLLEGE ACCESS TAX
CREDIT TO SPONTANEOUS BOMB
STATUTORY PROVISION THAT WILL
HELL.
POT NINETY HARMLESS. I MEAN I
THINK THAT SHOULD BE IN THE BILL
TO GUARANTEE THAT PROP NINETY
EIGHT WOULD NOT BE HARMED. BY
BECAUSE I MEAN.
I KNOW THAT WE CAN SAY A LOT OF
THINGS HERE BUT IT IS NOT IN THE
BILL.
IF YOU KNOW DIFFERENT
TEMPTATIONS FOR DIFFERENT
LAWYERS AND EVERYBODY ELSE FROM
DIFFERENT DEPARTMENTS IT GETS
REALLY MIGHTY AND THEN. I JUST
DON'T WANT PROP NINETY TO BE
HARM I DON'T WANT OUR CHILDREN
TO BE HARMED BECAUSE PEOPLE
DOING THERE DID YOU KNOW NOW.
DO A DIFFERENT WAY AFTER
DEDUCTION. OR EVEN THE RAINY DAY
FUND AS WELL YEAH I I THINK WE
NEVER APPROACH TO SPY.
BY DOING ANY HARM TO A TO INDIA.
PROGRAM A POLICY THAT WE CARE
DEEPLY ABOUT THE THE THREE
IS BEHIND THIS MEASURE.
SEVEN IS BECAUSE OF THE HARM
THAT'S GONNA CORPS.
VERY SOON TO THE TAXPAYERS OF
CALIFORNIA HENCE WE HAVE SENT A
BILL TO TO SOME BEFORE YOU WHICH
I BELIEVE IS A BI PARTISAN VOTE
SO. I AM OPEN.
TO TWO ALL ALL IDEAS A LANGUAGE
ALL PROVISIONS AS ONE YOU
POINTED OUT OF THAT DATA I HAD
AND.
MY PRE
IT'S MEASURE AS A PLACE TO CAL
GRANTS AND THE CHERNOBYL
CONTRIBUTIONS FROM OPEN I JUST
WHAT REALLY EMPHASIZE AN
UNDERSCORE.
BUT THESE IS BEHIND US MEASURE
IS TO MAKE SURE THAT WE PROTECT.
AND WE SHIELD THE TAXPAYERS
FROM CALIFORNIA.
FROM THE.
AGREED.
SUCH OF CONEY IN TAX POLICY THAT
COMETA WASHINGTON DC THAT WILL
DISPROPORTIONATE PACKED UP HUGE
DONOR STATE LIKE CALIFORNIA BUT
SPECIFICALLY TO PART WITH IT AS
A PROP NINETY EIGHT. KEY TO
TWELVE KIDS FOURTEEN.
COMMUNITY COLLEGES I AM
COMPLETELY OPEN.
TO PUTTING.
WHAT YOU MAY FEEL WILL BE OUT
LANGUAGE STATS?
WHAT MAKES YOU FEEL BETTER AND
I WOULD HOPE THAT AS A RESULT
THAT YOU'D BE SUPPORT OF THIS
MEASURE PERHAPS?
COAUTHOR A JOINT AUTHORS YOU
KNOW I I WANT I MEAN IE I
APPRECIATE WANTING TO PROTECT
THE TAXPAYER BUT I ALSO WANT
MAKE SURE WE PROTECT OUR
CHILDREN THAT WERE ON THE SAME
PAGE. GUARANTEEING THEM AT.
QUALITY EDUCATION IS A PLUS I
MEAN AS YOU KNOW I'VE GOT A
SEVEN YEAR OLD YEAH TO BE FIVE
YEAR OLD SO I'M I'M I'M AT THE
TRENCHES AS A MOM WATCHING HOW
THE SCHOOL SYSTEM WORKS. IN BOTH
OF MY A ONE BOY THE ONE THAT'S
IN PUBLIC SCHOOL BECAUSE THAT
ONE IS STILL IN PRESCHOOL HE
DOESN'T QUALIFY FOR PUBLIC
SCHOOL YET. ALMOST THERE ME BUT
I'M I'M WATCHING HOW DETRIMENTAL
OUR SCHOOL SYSTEM AND THE MONEY
THAT THEY'RE LOSING.
REGARDLESS OF ZIP CODE WHERE
THEY LIVE THEY EVERY ONE OF OUR
CHILD OR CHILDREN SHOULD HAVE A
QUALITY EDUCATION AND THAT IS
ABSOLUTE REDDING PROP NINETY
EIGHT. P. ON.
THE OTHER QUESTION I'M NOT SURE
MISTER POTEMKIN ANSWERED THE
OTHER TWO GENTLEMEN IS.
WHAT IS THE INCOME?
EIGHT CALIFORNIAN.
HAS TO BE TO HAVE A TEN THOUSAND
A TAX BILL LIABILITY.
WHAT WOULD THAT BE?
T. I'M GONNA CALL MY COLLEAGUE
FROM DAVIS CAN ANSWER THAT.
.
PICTOU MANY VARIABLES TO KNOW
FOR SURE MEMBER HAS TO DO YOU
OWN A HOME TO HAVE PROPERTY
TAXES.
AND THEN IT THE INCOME LET'S
LET'S UP ALL JUST LISTEN. LET'S
SAY THEY OWN A HOME THE SAY THEY
DO.
PAY TAXES.
RIGHT HAND THEN THE QUESTION IS
WHETHER THEY BUY THEIR HOME
WHERE THEY BUY THEIR HOME RIGHT
SO IT'S ONE PERCENT OF THE THREE
A PROP THIRTEEN PLUS A LITTLE.
I'M TIMES WHENEVER THEY BOUGHT
THEIR HOME SOON CALIFORNIA HE
BOUGHT A HOME RECENTLY THAT
COULD EASILY WITH THE FULL TEN
THOUSAND DOLLARS.
AND SO ALL YOUR INCOME TAX
BOB WOULD NOW BE OVER THE TEN
THOUSAND DOLLAR LIMIT. THE BEST
CLUE WE HAVE IS THAT THE AVERAGE
ITEMIZED BUDGET DOM IS DEDUCTING
EIGHTEEN THOUSAND DOLLARS
SO THATMEANS A LOT OF PEOPLE
ARE YOU TALKING OVER EIGHTEEN
DOES NOT INCLUDING PEOPLE WELL
INTO WE MIGHT CONSIDER. THE
MIDDLE CLASS BUT THERE'S NO
NUMBER ON WHAT THE INCOME WOULD
BE.
I GUESS THAT'S WHAT WHAT'S
WHAT'S YOUR DEFINITION OF A
MIDDLE CLASS.
I MEAN LET'S I MEAN LET'S USE A
THREE REGION SADDAM MOST TALKED
pAND ORANGE COUNTY RIGHT AND
THERE'S A MIXTURE THERE THERE'S.
ALSO YOU KNOW EXPENSIVE SAN
FRANCISCO.
YOU KNOW LA AN ORANGE COUNTY
KIND OF DEPENDING WHERE YOU LIVE
ON MY DISTRICT NINETY PERCENT OF
THEM ARE VERY LOW INCOME SO I'M
CURIOUS TO KNOW WHAT MIDDLE
CLASS TO U. S. COMPARED TO WHAT
I WOULD UNDERSTAND IT TO BE.
I MEAN TERMS OF AN INCOME.
SURE. I'D.
AND YOU KNOW NOT ECONOMIST
ACTUALLY DON'T WANNA GIVE IT SO
SORT OF A NUMBER AHEAD OF
HOUSEHOLD INCOME THAT LET'S SAY
A A.
A FAMILY OF FOUR TO CHILDREN
LET'S JUST USE MY FAMILY TWO
CHILDREN. A HUSBAND WIFE BOTH
WORKING.
BUT WHAT WHAT WHAT THE AVERAGE
WHAT WOULD BE CONSIDERED A
MIDDLE CLASS.
I APPRECIATE THE QUESTION I I'M
NOT GOING TO PUT A NUMBER BUT
I'LL TELL YOU BUT I'LL TELL YOU
THIS A THIRD OF CALIFORNIANS
ITEMIZE UNDER THE PREVIOUS LAW
SO THERE'S NO QUESTION THAT
THIS.
BILL ON ENABLING PEOPLE TO
RETAIN THEIR STATE LOCAL TAX
DEDUCTION ON THAT THE MOST IS
NOT GOING TO FACT TWO THIRDS OF
CALIFORNIA TAXPAYERS ARE THE TWO
THIRDS ARE YOU TALKING ABOUT. DO
WE KNOW WHAT THE AVERAGE INCOME
OF THOSE TWO THIRDS ARE.
BOB.
I PRESUME THE FTP DOES YES FOR
SURE WHAT WHAT IS IT I DON'T TWO
HUNDRED THOUSAND FIVE HUNDRED
THOUSAND SIX HUNDRED THOUSAND
EIGHT HUNDRED THOUSAND A MILLION
DOLLARS. OF THE TWO THIRDS WHO
DON'T ITEMIZE IT THOSE WHO DO
WHO DID A THAT'S THE THIRD THAT
ITEMIZING A THIRD A THIRD.
I DO NOT KNOW THAT I I DON'T I'M
PRETTY COMPANIES NOT BY BUDGET
THOUSAND DOLLARS BUT IT'S BUT
THAT IS IT BUT THAT IS A NOBLE
FIGURE.
THE.
HERE IT IS I I'VE BEEN SEEN
DIFFERENT REPORTS IN THE COURSE
THEIR MEDIA. ON DEPENDING ON WHO
YOU WHERE YOU. CAN GET YOUR
INFORMATION IT'S SOME FOLKS SAYS
THAT YOU GET I HAVE TO HAVE A
LEASE PAULINE AVERAGE INCOME OF
LIKE SIX HUNDRED THOUSAND
DOLLARS. TO EVEN D. DOT.
TEN I MEAN TO HAVE A DEEP YOU
KNOW A TEN THOUSAND DOLLAR. TAX
BILL OR SALT AND AND SO I I'M
JUST.
THE AVERAGE INCOME IN MY
DISTRICT.
DOES EVEN GET TO TWO HUNDRED A
HUNDRED FIFTY THOUSAND. AT ALL.
SO I ALTHOUGH I APPRECIATE THE
EFFORT OF TRYING TO HELP.
BUT WE HELPING THE ONE PERCENT
BUT WE HELP IN THE NINETY NINE
PERCENT BOOK HERE'S ONE WAY TO
TO LOOK AT IT SENATOR THAT. IF
THE CREDIT IS BELOW ONE HUNDRED
PERCENT.
IT HELPS NINE ITEMIZE TO SEND
PEOPLE IN YOUR DISTRICT IN TWO
WAYS FIRST OF ALL MORE MONEY IS
GOING COME TO THE STATE AND THE
STATE CAN USE AT FOR SERVICES.
BUT YOU STATED EARLIER THAT THE
STATE. I MEAN THOSE TO DEDUCT
CAN CHOOSE WHERE THEY I'M SORRY
MR PRO TEM SAID THAT THAT THEY
CAN CHOOSE TO. BE DUG INTO THE
EDUCATION THEY CAN DEDUCT INTO
INFRASTRUCTURE THAT. IT'S NOT
THE STATE WHOSE CHOOSING THE IN
THE VIGIL GET TO SO WHAT LET'S
JUST SAY THAT ONE PERCENT WHOSE
DUTIES DEDUCTION OR DIS EASE
CONTRIBUTION. SET.
I'M NOT GIVEN TO EDUCATION.
I DO NOT BY WHAT THAT NINETY
NINE PERCENT OF THEM DECIDE TO
JUST GIVE IT ALL TO. I DON'T
KNOW.
NAME SOMETHING HEALTH CARE I I
MEAN I I'M JUST SAYING THAT THAT
DOESN'T MEAN THAT HELPS ALL OF
US IT IT HELPS.
YOU KNOW CERTAIN INDIVIDUALS AND
YOU'RE ONLY HELPING THE ONE
PERCENT WHY ARE WE HELPING.
THE TRULY THE ONE WHO REALLY
NEEDS IT THE MOST ARE THE MIDDLE
CLASS LOCAL WHEN WE SEE SOME
DRAMATIC SIR I I HAVE TO STOP IN
YOUR MIS CHARACTERIZATION OF THE
ONE PERCENT COME BECAUSE.
YOU CHARACTERIZATION OF THE ONE
PERCENT IS IS ERRONEOUS IN THIS
CASE SINCE HELPS THE MIDDLE
CLASS AS WELL SO IF THAT IS YOUR
AVERAGE WITH REGARD TO HOW YOU
DEFINE MIDDLE CLASS FOR YOUR
DISTRICT YOU CAN ONLY MATCHING
WHAT IT IS ACTUALLY.
IN MY DISTRICT WHISTLING I THINK
THIS IS SOMETHING THAT
STATISTICALLY FACTUALLY. YOU AND
I WOULD CONCUR WITH THEM WE
WOULD AGREE.
WE HAVE.
AGAIN WE GO BACK TO THE THESIS
BEHIND THE MEASURE AND ITSELF.
.
WE HAVE AN EGREGIOUS TAX POLICY
THAT JUST OCCURRED IN WASHINGTON
DC I THINK.
THE VAST MAJORITY AMERICANS
CONCURRED THAT.
ALL THIS WAY. SO YOU CAN TAKE IT
AND. I THINK THE VAST MAJORITY
OF AMERICANS HAVE CONCLUDED THAT
THIS IS THE WORST TAX POLICY IN
THE HISTORY UNITED STATES
BECAUSE STATISTICALLY. OF BOTH
REPUBLICANS AS WELL AS DEMOCRATS
THAT ELECTED OFFICIALS BUT
DEMOCRATS AND REPUBLICANS ALIKE
ORDINARY CITIZENS TAXPAYERS.
HAVE ALL DECRIED THIS TAX POLICY
NOW THIS HURTS A HUGE DONOR
STATE DISPROPORTIONATE MORE SO
THAN ANY OTHER STATE IN THE
UNION.
SO IF YOU HAVE A SCENARIO WHERE
YOU CAN ACTUALLY MAKE THE STATE.
WHOLE.
NO TAXES INCREASE.
BECAUSE THE ATTENDANT GOOD WITH
THAT THE SUIT THE SEVERE.
CONSEQUENCES OF THIS POP TAX
POLICY THAT WILL RAISE TAXES. ON
CALIFORNIANS
DOUBLE TAXATION BECAUSE THE
AVERAGE AS WAS STATED BEFORE THE
AVERAGE A DEDUCTION OF SALT IS
TWENTY THOUSAND YOU HAVE A HARD
CAP NOW OF TEN THOUSAND.
SO YOU WILL HAVE A DOUBLE
TAXATION ON MANY CALIFORNIANS IF
WE GIVE THEM THAT OPPORTUNITY TO
BE MADE WHOLE AND HAVE THE TAXES
NOT RAISED
BUT A THE SAME TIME MAKING THE
STATE HOLDEN AYE AYE I'D I'D
LIKE YOUR SUGGESTION WITH
REGARDS TO. MAKING SURE THE FAR
WALL SO THERE'S AN IMPACT PROP
NINETY EIGHT AND I THINK THAT'S
SOMETHING THAT WE CONCUR CONCUR
WITH ALSO TO. PUT THEM TO GOOD
AS ANYONE. ON THIS THIS DíAS.
DEMOCRAT OR REPUBLICAN WHO'D
WANNA HARM PROP NINETY IT WOULD
THAT WE WANNA DO QUITE THE
OPPOSITE WE ONE INFUSE MUCH
MORE.
A RESOURCES TOWARDS SCHOOLS CAN
TO TWELVE AND COMMITTEE
COLLEGES.
WE'RE TRYING TO DO WOULD
DISAGREE JUST ISSUE.
AND QUITE FRANKLY I THINK
THERE'S A REASON WHY. THE ORANGE
COUNTY CONGRESSMAN DANA
ROHRABACHER VOTED NO.
ON THIS TAX POLICY UP IN
WASHINGTON DC AS WELL AS TOM
MCCLINTOCK AS WELL AS. THE
CONGRESSMAN RIGHT DOWN.
DOWN ORANGE COUNTY SENATOR
COUNTY UNTIL I SAW WHO VOTED NO.
ON THIS MEASURE BECAUSE IT HURTS
CALIFORNIA TAXPAYERS.
IT HURTS
THE MIDDLE CLASS
IT'S A DOUBLE TAXATION PANTS BUT
THESIS BEHIND THIS MEASURE I
JUST WANT TO MAKE SURE WE DON'T
TRY TO MISS.
CHARACTERIZE THIS MEASURE AS
PROTECTING THE QUORUM CALL ONE
PERCENT I KNOW IT'S FASHIONABLE
TO SAY THAT YOU KNOW.
POLITICAL.
EXPEDIENCY BUT THIS MEASURE IS
TO SAVE TAXPAYERS MRS.
PRICKLY A BIPARTISAN MEASURE
THAT THING DEMOCRATS AND
REPUBLICANS SHOULD STRONGLY JOIN
IN SUPPORT OF THIS MEASURE.
AND THEN MR PRO TEM IE I'M NOT
SAYING THE BILL IS A BAD BILL IN
THE SENSE IT'S TRYING TO HELP.
RELIEVE.
CALIFORNIA TAXPAYERS BUT I THINK
THOUGH IS BECAUSE YOU CAN TEAM
TO USE THAT WORD MIDDLE CLASS
I'M STILL TRYING TO UNDERSTAND
WHAT'S CONSIDER MIDDLE CLASS.
BECAUSE I DON'T THINK IT HELPS
THE MIDDLE CLASS
BOB OR EVEN A PERCENTAGE OF THEM
IF IT DOES.
YOU KNOW PLEASE CORRECT ME IF
I'M WRONG I WOULD LIKE TO SEE
THOSE NUMBERS AND MAYBE THE
FRANCHISE TAX BOARD. CAN COME
OUT WITH AND LET US KNOW WHAT
THAT AVERAGES OF THOSE INCOME IN
THE STATE THAT WOULD BENEFIT
THIS. ON BECAUSE IF IT I MEAN IT
YOU KNOW FOR YOUR DISTRICT IN MY
DISTRICT NOT MUCH DIFFERENT IN
TERMS OF YOU KNOW INCOME.
BRACKET THE. MIND BARELY GET
YOU KNOW MY AVERAGE BUT IT'S
MOST AREAS IS FIFTY SIXTY
THOUSAND DOLLARS FOR FAMILY FOR.
THAT'S THAT'S THE AVERAGE INCOME
IN MY DISTRICT INSISTS MOST OF
MY MOST OF MY DISTRICT.
SO IT'S NOT A HUNDRED THOUSAND
NOT TWO HUNDRED THOUSAND AND SO
MY CURIOSITY BECAUSE I WANNA GO
BACK TO MY CONSTITUENCY HATE.
I WOULD VOTED ON THIS BECAUSE
IT'S HELPING YOU THE FOR THE
FAMILY OF FOUR THAT'S MAKING
FIFTY THOUSAND DOLLARS INCOME.
AND BECAUSE OF WHAT THE FEDERAL
GOVERNMENT DID WE ARE NOW GOING
TO HELP YOU RELIEF SOMETHING BUT
HOW DO I GO BACK TO AND MOST OF
MY CONSTITUENTS. AND SAY OH YOU
KNOW IT ACTUALLY DOESN'T HELP
YOU. IT HELPS THOSE WHO LIVE IN
HUNTING HARBOR BUT LET ME SAY
THIS HOW I WANTED TO LET MOST OF
THAT STUFF AND. I'M I'M NOT A
I'M NOT TRYING TO. YOU KNOW BE
DISRESPECTFUL IN ANY WAY IS JUST
I WOULD LOVE TO FND OUT FROM
FRANCHISE TAX BOARD. MAYBE AFTER
THIS NOT NOW IS JUST WHAT IS
THAT AB RECORDS AND WE CAN DO
THAT I WOULD LOVE TO BE ABLE TO
I WOULD BE HERE CHAMPION IF BY
IF IF IF. IF IT DOES COME BACK
HELPING WHAT I CONSIDER MIDDLE
CLASS I KNOW SEND THE CISCO MY
CONSIDERED MIDDLE CLASS WAY
DIFFERENT IN MY VIEW OR THE
PENINSULA SO FOR EXACTLY BUT
RESTORING WITNESS IN THIS MATTER
BY STRAP OF IT DIDN'T HARM.
YOUR CONSTITUENTS.
OKAY BUT IT DID NO HARM TO THEM
AT ALL WHATSOEVER WELL I MEAN IF
IT DOESN'T HARM DONE NO HARM NO
FOUL.
BUT IF YOU BUT THEN WE KNOW
WOULD YOU CONSIDER VOTING FOR
THE MEASURE BUT BUT I THINK WE
WE WE THEN WE NEED TO THEN GO
BACK AND MAKE SURE THAT WE DON'T
STATE IT AS HELPING THE MIDDLE
CLASS. IS THAT WERE HELPING
CALIFORNIA TAXPAYERS.
AND THAT DOES MEAN ALL TAX BUT
THAT WE'VE NEVER CHARACTERIZES
THIS THE MEASURE FOR MIDDLE
CLASS TAXPAYERS I THINK WE'VE
ALWAYS CHARACTERIZES MEASURE. IS
HELPING THE TAXPAYERS OF
CALIFORNIA WHICH WOULD ALSO BE
INCLUSIVE OF. OF THE MIDDLE
CLASS NOW WE CAN SPEND AN HOUR
TO MORE SO NOW DON'T THINK THAT
THAT WOULD MAY TRY THE PATIENCE
OF A OF THE CHAIR. TRYING TO
SORT OF YOU KNOW.
THIS SITE FOR IF YOU WILL THE
VARIANCE OF WHAT MIDDLE CLASS
MEANS BECAUSE MIDDLE CLASSES. IS
DEFINABLE MANY DIFFERENT WAYS
SUCH ECONOMICALLY UP AND ON THE
STATE OF CALIFORNIA WHICH WHAT I
AGREE WITH THE FROM ORANGE
COUNTY TO.
SULA TO TO SAN FRANCISCO TO SEE
OF THE SAN DIEGO E. STILL AND SO
FORTH YOU KNOW I WANNA MAKE SURE
WE DON'T SPEND A LOT OF TIME ON
THAT BUT. PLEASED WILL GET YOU
TO THE CHAIR THAT SELENA BY SIR
WE HAVE WELL AS RUMOR QUESTION
IS UNDERMINE FOLKS WE HAVE.
THE INFORMATION HEARING. ON THE
FEDERAL TAX BILL COMING UP IN
JUST A FEW MOMENTS
ON A AND THAT WE ARE GOING TO
NEED TO BE AT. CLOSER GERMAN AS
POSSIBLE AT ONE AS THERE IS A
FIRE IN RECOVERY MEETING. AT ONE
O'CLOCK WITH ALL THE IT COUNTIES
IT IMPACTED BY THE DEVASTATING.
NORTHERN AND SOUTHERN
CALIFORNIA FIRE SO COULD TURN
OVER THE VICE CHAIR FOR LAST
QUESTION I HAVE. ABOUT SIXTY
SECONDS WITH THE COMMENTS AND WE
ALSO HAVE A MOTION THE FLOOR BY
SENATOR LARA.
AND THE AND. I AGREE WITH ONE OF
THE SPEAKER EARLIER SAYING THE
CERTAINTY IS VERY IMPORTANT.
BECAUSE WHEN WE FILE OUR TAXES.
WE GET CALLED BY US ON AUTO
STATE FUND.
SO MY MY QUESTION IN THE
IMPLEMENTATION OF THIS WHAT
HAPPENS.
TO THESE INDIVIDUALS.
IF THE IRS DOES NOT CONSIDER
THESE TO BE CHARITABLE
CONTRIBUTIONS.
BOB WOULD WOULD BE A MISSED
APPROACH AND WOULD YOU CONSIDER
A SAFE HARBOR PROVISION. IN THE
BILL TO REIMBURSE THE TAXPAYER
FOR ANY PENALTIES THAT THEY
OCCUR. ON IF THE IRS DISALLOWS
THESE CONTRIBUTION OR DO WE DO
WE AS A STATE RIGHT THEN THE
CHECK BACK TO WE WE FUND THEM
I'M. OR ARE NOW THEY'RE STUCK
WOULD BE DOUBLE TAX LET'S
EXAMINE THE PROBABILITY FOR
SALICYLATE GO TO SORT OF
ARMAGEDDON WORST CASE SCENARIO
YOU KNOW LET'S NOT GO FOR ONE
EXTREMISTS LESTAT WOULD BACK
LITTLE BIT. WITH LISTEN SOME
MODERATION IN MEASUREMENT LET'S
TALK ABOUT IF YOU WILL WHAT
THOSE PROBABILITIES ARE
SPECIFICALLY WITH THE IRS.
OR.
SUCH A TOTALLY.
IF THE REPUBLICANS IN THE
CONGRESS.
DECIDE TO HURT CALIFORNIA TWICE.
BUT BY. SUCH JOY REPEALING THIS
PROVISION THAT'S ALREADY
UNAUTHORIZED OF THE RULING.
BY THE HARRIS BACK IN TWO
THOUSAND ELEVEN HENCE.
THE THAT THE BASIS OF WHICH I
MOVE FORWARD MY MITRAL TAX
CONTRIBUTION PLAN TO THE CAL
GRANT SYSTEM BUT HOW OTHER
STATES SUCH AS. FLORIDA AND
ALABAMA
AND ARIZONA IN FACT MANY RED
STATES THAT ACTUALLY USES AS A
MODEL. FOR POLICIES THAT I WOULD
SUPPORT SUCH AS.
THE TAXPAYER FUNDED VOUCHER
PROGRAMS FOR SECTARIAN SCHOOLS
BUT THERE'S A MODEL THAT'S BEEN
ALREADY UTILIZE SO PERHAPS ONE
OF THE PROFESSORS.
CAN TALK ABOUT MAYBE THE
PROBABILITY OF WHAT THIS WOULD
COULD THIS ACTUALLY COME TO
FRUITION AND THEN MAYBE I CAN
GET YOUR QUESTION.
STORES WELL I WOULD THINK ABOUT
THE CLINTONS THE OF COURSE IT'S
IT'S A GREAT QUESTION IT AT GOES
UP THE MARKS OF THE REPRESENT IS
THE CPA WE ALL WANT TO HAVE THE
MOST CERTAINTY WE CAN. AND. THE
X. THE AMENDMENTS THAT WE WOULD
SUGGEST IF TAKEN I THINK WOULD
MAKE IT EXTREMELY UNLIKELY. THAT
IT WOULD FACE A REALISTIC.
ADMINISTRATIVE JUDICIAL
CHALLENGE EVEN IF IT DAD I CAN'T
IMAGINE A TAXPAYERS.
BEING PENALIZED ON THAT HAVE
BEEN AGGRESSIVE POSITION OF THE
TREASURY THE THOUGHT THAT THEY
WOULD ASK OF PENALTIES I THINK
IT IS.
WHO VIRTUALLY ZERO AND?
IN TERMS OF LEGISLATION.
.
MY GUESTS IS IF LEGISLATION WERE
PROPOSED.
BOB.
I HAVE A.
IT'S HARDER TO GUESS ON
LEGISLATION SHOULDN'T THERE'D BE
NO PENALTIES. MY GUESS IS IT
WOULD BE HARD GOING THRILLED FOR
THE REASONS.
THE SENATOR MENTIONED BECAUSE
IT WOULD HURT A WHOLE RANGE OF
TAXPAYERS AND KIND OF THROW
THINGS TOPSY TURVY THERE'S A
GOOD CHANCE AT HAVE A A
PROSPECTIVE EFFECTIVE DAY. IN
AFFECTING GIVING.
US AT LEAST ONE YEAR OF TAX
RELIEF.
YEAH I WOULD JUST ADDED MEAN THE
IDEA IS THAT THE IF THERE HAS
BEEN GOTTEN STATES BASED ON
PRIOR LAW AND SO THE IDEA
PENALIZING A TAXPAYER FOR A LINE
ON THAT SEEMS UC SEEMS VERY.
IMPROBABLE BUT IT. BUT THERE'S
CERTAINLY A POSSIBILITY GOING
FORWARD LEGISLATION BUT I WOULD
COMPLETELY AGREE AP REMOTE.
THANK YOU.
THANK YOU SO MUCH MEDI VICE
CHAIR.
MR MORE LIKE THIS SAID HE REALLY
QUICK SITES I'VE EVER ACTION
FORGET FOR THE PRESIDENT
PERTENECE I BELIEVE MCCLINTOCK
VOTED ENTHUSIASTICALLY FOR THE.
FINAL VERSION OF THE TAX BILL.
I I STAND CORRECTED ON THAT.
REMOVE MCCLINTOCK BUT I'LL KEEP.
ORANGE COUNTY'S FINEST DANA
ROHRABACHER AS A NO GOOD ENOUGH
FOR THE MEASURE.
SENATOR CONGRESSMAN BY THE WAY.
SO WE'RE DOING SOME BACK THE
NAPKIN MATH AND I'D.
HOPE IT WAS NOT COMING OFF AS
RUDE NEW ON OUR CALCULATORS HERE
IN REGARDS TO ABOUT WHAT IT
WOULD LOOK LIKE IF WE LOOK AT A
JOINT FILING.
IN WHO WOULD BE IMPACTED SO IF
YOU TAKE A LOOK AND AT MAJORITY
THE AREAS A LOT OF THE AREAS IN
THE STATE.
I'M YOU'RE GOING TO PAY ABOUT
NINE THOUSAND DOLLARS.
PRIOR TO PROPERTY TAX A AT ABOUT
A HUNDRED AND SEVEN THOUSAND
DOLLAR COMBINED ANNUAL INCOME.
THAT'S ROCKS BACK THE NAPKIN. SO
AGAIN COMBINED INCOME OF
APPROXIMATELY HUNDRED AND SEVEN
THOUSAND DOLLARS.
YOU'RE GONNA HIT THAT TEN
THOUSAND DOLLAR CEILING QUICKLY.
IN THAT IS AGAIN PRIOR. TO OF
THE DEDUCTION WHEN IT COMES TO
PROPERTY TAX. THAT THINK IT'S
ALSO IMPORTANT REMEMBER THAT THE
ONLY REASON WHY WE ARE HERE
TODAY. IS BECAUSE THE FEDERAL
TAX REFORM WE TO SYSTEM THAT
WORKED FOR. CALIFORNIA RESIDENTS
I'M JUST.
SIXTY DAYS AGO.
AND IN WHILE THERE IS STILL WORK
TO DO ON THIS BILL BUT IT'S
CLEAR.
IN MY OPINION THAT THE FEDERAL
TAX PLAN HAS A TARGET ON THE
BACK OF CALIFORNIA.
IN HIGHER WELL STATES.
AND ONE OF THE MOST IMPORTANT
DEDUCTIONS.
THAT.
CALIFORNIANS HAVE IS BEING ABLE
TO DEDUCT THAT THEIR PROPERTY
TAXES AND THEIR STATE INCOME
TAXES.
IN HAVE SOME FIGURES.
.
QUICKLY.
FOR EVERY DOLLAR.
PAIN FEDERAL TAX DOLLARS THAT
MISSISSIPPI RECEIVES HER PACE
THEY.
GET TWO DOLLARS AND THIRTEEN
CENTS BACK.
WEST VIRGINIA FOR EVERY DOLLAR
THAT THEY PAID TWO DOLLARS AND
SEVEN CENTS KENTUCKY FOR EVERY
DOLLAR BUCK NINETY.
SOUTH CAROLINA FOR EVERY DOLLAR
BUCK SEVENTY ONE.
IN NEW JERSEY FOR EVERY DOLLAR
THAT THEY GIVE TO THE FEDERAL
TREASURY THEY GET SEVENTY FOUR
CENTS BACK NEW YORK. FOR EVERY
DOLLAR EIGHTY ONE CENTS BACK
MASSACHUSETTS ONE DOLLAR EIGHTY
THREE CENTS BACK CALIFORNIA ONE
DOLLAR NINETY SIX CENTS BACK.
IN TIME AND TIME AGAIN WHAT
WE'VE SEEN IS HIGHER WELL
STATES.
HELP KEEP.
LOWER WEALTH STATES OR LOWER TAX
STATES AFLOAT.
IT'S HOW THE SYSTEM WORKS IF YOU
HAVE THREE RESTAURANTS
IF YOU'RE A RESTAURANT OWNER.
AND ONE IS UNDERPERFORMING YOUR
OTHER TWO WILL SUBSIDIZE THAT
UNDERPERFORMING RESTAURANT.
AND THAT'S WHAT WE HAVE OUR TAX
SYSTEM.
AND WHAT IS VERY CLEAR. IS THAT
FEDERAL TAX PLAN. GOT TARGETS
HIGHER WELL STATES LIKE
CALIFORNIA.
SO. IT IS UP TO US.
BUT AS A LEGISLATURE.
MOVED AND LEAD BY SATURNALIA
HOME. TO ENSURE THAT WE ARE
PROTECTING. CALIFORNIANS. IN
THIS DRACONIAN PLAN.
SO WE HAVE A MOTION ON THE FLOOR
BY SENATOR LARA ANY CLOSING
STATEMENTS MISTER DAILY ON. THE
CHAIR ALL TAKE THAT AS MY
CLOSING STATEMENT.
HAPPENING THANK YOU SO MUCH
FUN SO WE HAVE A MOTION AND IT
IS A DO PASSED TO APPROPRIATIONS
ROLL CALL VOTE PLEASE HUSSEIN
CHESTER REQUIRED BY. WIRE AYE
WINS.
WELL.
HERNANDEZ.
HERTZBERG AYE HERTZBERG AYE
LARA.
FLOOR AYE-MOORLACH KNOWN WARLOCK
NOW YOU. PRETTY IT IS.
BUT IT IS AYE HERNANDEZ.
I WOULD ADD THE SCI.
CURRENTLY WE HAVE A FOUR ONE
VOTE WE'RE GONNA KEEP THE ROLE
OPEN AND TO BE ABLE TO ADD ON
THINK.
IT'S OPEN I GONNA MAKE THIS GUY
RIGHT.
COME OFFICE. THERE THE WHOLE
LIKE.
THERE WE GO THERE'S GONNA BE
SOME ARM TWISTING HERE IS WELL
THANK YOU SO MUCH WE'RE GONNA
KEEP THE ROLE OPEN AND TAKE
FINAL ACTION HERE IN JUST A BIT.
WE WOULD LIKE TO BE ABLE TO ADD
IN THAT MEMBERS ON IN JUST A
REMINDER THAT WE HAVE BEEN IN
FOR.
A HEARING ON.
REFORM IN JUST A FEW MOMENTS SO
WHY DON'T WE START WITH THE
CONSENT CALENDAR ON THE CONSENT
CALENDAR TODAY WE HAVE SENATE
BILL.
I'D NINETEEN ITEM NUMBER FOUR IN
SENATE BILL FIVE TWO TWO ITEM
NUMBER FIVE
CURRENTLY A FIVE ZERO VOTE.
HUSSEIN CHESTER ROLL CALL VOTE
PLEASE
THIRTY. FIVE HERTZBERG AND LARA.
I CAN SAY IS THAT BECAUSE AYE.
AYES SIMPLYZERO SEVEN ZERO
WE'RE GOING TO CLOSE THE CAN
CALENDAR.
FOR NOW MOVING ON TO ITEM NUMBER
TWO THIS IS A PRESENTATION ONLY
WILL NOT BE TAKING A VOTE ON
THIS TODAY.
WE'RE MOVING ON TO ITEM NUMBER
SEVEN ON OUR CALENDAR SENATE
BILL SEVEN TWENTY SIX WIENER
CURRENTLY ENJOYS A FOUR ZERO
VOTE IS SLAIN CHESTER ROLL CALL
PLEASE NGUYEN.
WHEN I.
HERTZBERG AYE PUT YOUR GUY LARA.
FLOOR EYES SEVEN ZERO THAT BILL
IS OUT WE'RE CLOSING THE ROLE.
TO SWITCH. AND WE ARE GOING TO
CONTINUE TO KEEP.
.
WELL I CITY I THINK GREATLY TWO
TWO SEVEN TWO TWO SEVEN OPENED.
HERE FOR JUST A FEW MOMENTS WE
DO NEED TO GET TO OUR PATENT
INFORMATION HEARING. ARE
INCREDIBLE SERGEANTS ARE
BREAKING OUT THE TASERS AND
HUNTING DOWN.
THOSE SENATORS WHO MAY STILL
NEED TO ADD ON EVEN AS WE SPEAK.
I IMMIGRANT TAKE A BRIEF.
TWO MINUTES UP. WE'LL COME RIGHT
BACK WITH YOU.
CORD INCONNUE ADJOURN THIS
HEARING.
TAKE ANOTHER TWO MINUTE BREAK
AND COME RIGHT BACK TO TALK
ABOUT FEDERAL TAX REFORM
ME TAKING ACTION ON ITEM NUMBER
ONE SENATE BILL TWO TWO SEVEN IT
CURRENTLY ENJOYS A FOUR ONE VOTE
WITH THE CHAIR VOTING I MISS
LANE CHESTER ROLL CALL PLEASE.
CELLS ARE STILL.
FIVE ONE THAT BILL IS OUT WE'RE
GONNA CLOSE THE ROLE THAT WE'RE
GONNA BE RIGHT BACK WITH YOU
MOMENTARILY ABOUT.
SENATE BILL FIVE SIXTY ONE.
LOADING HAVE WHAT'S BILL IT'S
OUT AND WE'RE GONNA
CLOSE THE ROLE.
SO AT THIS POINT IN TIME WE ARE
GOING TO ADJOURN OUR BILL
HEARING.
REMIND FOLKS THAT AT TWO O'CLOCK
TOMORROW THAT WE HAVE A HEARING
ON THE GHOST SHIP FIRE. ON THAT
WE LOOK FORTY SEEN YOU WE'RE
GONNA RE ADJOURN HERE IN JUST
TWO MINUTES
BUT MAYBE THREE BOB MOVED ASIDE
TO TALK ALL ISSUES OF FEDERAL
TAX REFORM. WILL BE RETURNING
HERE IN JUST A COUPLE MINUTES WE
WELCOME FTP TO THE ROOM
FINANCE THANK YOU SO MUCH FOR
YOUR PATIENCE.
SO WE'RE GONNA BE FOCUSING ON
THAT THE ISSUE OF FEDERAL TAX
REFORM THIS YEAR IN THIS
COMMITTEE.
AND IT'S GOING TO BE ONE OF THE
BIGGEST ISSUES THAT THIS
LEGISLATURE WILL FOCUS IN ON
THAT HERE IN TWO THOUSAND
EIGHTEEN.
SO AS WE ALL KNOW LAST MONTH
THAT CONGRESS APPROVED FEDERAL
TAX REFORM FAR BEYOND ANYTHING
WE'VE SEEN SINCE THE NINETEEN
EIGHTY SIX TAX REFORM ACT.
AND WE ALL HAVE OUR OPINIONS
I'M SURE FEW MIND TODAY AND I
KNOW THAT WILL HAVE THAT THE
COMMITTEE SHARING THEIRS IS
WELL.
ON IN WE WANT TO MAKE SURE THAT
EVERYONE KNOWS THIS IS AN
INITIAL DISCUSSION
WE'VE HAD INDIVIDUAL
ORGANIZATIONS FROM EACH SIDE OF
THE AISLE IF YOU WILL WANT TO BE
ABLE TO COME. TESTIFY IN SUPPORT
OR OPPOSE.
HAD THE BILL TODAY OR OF THIS
ISSUE TODAY AND WHAT WE ASK IS.
DID FOR UNDERSTAND IS IS A TOE
IN THE WATER WERE TAKEN INITIAL
LOOK I AS A FRANCHISE TAX BOARD
HAS A LOT OF WORK TO DO. HERE ON
THE FIVE HUNDRED PAGES OF TEXT
THAT IS IN FRONT OF THEM IT WILL
HAVE A FOLLOW UP HEARING IN
APRIL ONCE THEY'RE ABLE TO
COMPLETE THEIR REVIEW. WHAT WE
KNOW IS THAT THIS BILL?
IS GOING TO ADD ABOUT ONE POINT
FIVE TRILLION DOLLARS TO THE
NATIONAL DEBT OVER THE NEXT TEN
YEARS BEGIN OR SHARE SOME OF MY
OPINIONS ON THIS ISSUE. I AND I
KNOW THAT WILL HAVE OTHER
COMMITTEE MEMBERS WHO HAVE
DIFFERENT POINTS OF MINE.
IT TAKES HEALTH INSURANCE AWAY.
FROM ABOUT ONE POINT SEVEN
MILLION CALIFORNIANS
HE GETS ONE OF THE MOST
BENEFICIAL TAX BREAKS THAT WE
ARE DISCUSSING TO GOLDEN STATE
FAMILIES.
AND CAPS THE ABILITY OF
CALIFORNIANS TO DEDUCT LOSSES IF
THEIR HOME WAS DESTROYED BY A
WILDFIRE WHICH
FOR MYSELF IS LIVING THROUGH THE
NORTH A FIRESTORM WE'VE LOST SIX
THOUSAND HOMES. THAT'S
PARTICULARLY EGREGIOUS.
INITIATIVES BILLIONS OF DOLLARS
OF TAX BENEFITS TO CORPORATIONS
AND WEALTHY TAXPAYERS. IN THE
BENEFITS FOR THE MIDDLE CLASS
ARE OF MODEST MEANS.
BUT AT ITS ESSENCE HR ONE PUTS
AT STAY SHAREHOLDERS OF
MULTINATIONAL CORPORATIONS
FOR THE STAKEHOLDERS OF THIS
COUNTRY. WORKING FAMILIES IN
SENIORS HOWEVER REGARDLESS OF
YOUR INDIVIDUAL VIEWS AND WE ALL
HAVE ONE. WE HAVE MUCH WORK TO
DO UNDERSTANDING HR ONE ITS
EFFECT ON CALIFORNIA'S TAXPAYERS
IN THE CHOICES THAT THE
LEGISLATURE WILL FACE AS A
RESULT OF THE BILL. HARM THEM ON
THE MOST SIGNIFICANT CHALLENGES
THAT THIS COMMITTEE AND THIS
LEGISLATURE IS GOING TO TACKLE
IN TWO THOUSAND EIGHTEEN.
BUT AGAIN THIS MORNING'S HEARING
IT'S AN INITIAL OVERVIEW. I TOLD
THE WATER.
ON FEDERAL TAX REFORM THAT
WE'RE GONNA HOLD THAT FUTURE
HEARING COMING UP IN APRIL WITH
BROADER PARTICIPATION AND WE'RE
GONNA BE INVITING ORGANIZATIONS
WHO ARE IN SUPPORT OF HR ONE.
AND THOSE WHO ARE OPPOSED TO
BETTER PROVIDE A THEIR OWN
ANALYSIS IS WELL.
IN THE REASON WHY WE'RE LOOKING
AT A PAROLE BUT LATER IN APRIL
THAT'S WHEN THE FRANCHISE TAX
BOARD WITH COMPLETED THEIR FINAL
REVIEW AND ANALYSIS OF THE FIVE
HUNDRED PAGE BEHEMOTH. MY WORDS
NOT THEIRS. BUT TODAY THOUGH
HERE'S WHERE WE'RE GONNA START
IN REGARDS TO OUR ROOM REVIEW.
WE HAVE A VERY BRIEF OVERVIEW OF
HR ONE. WE HAVE A PRELIMINARY
ASSESSMENT OF ITS IMPACT ON
CALIFORNIA'S ARMS ON
CALIFORNIA'S INCOME
INCORPORATION TAX.
WE'RE GOING TO HEAR A
DESCRIPTION OF THE PROCESS OF
THE STATE'S CONFORMITY TO
FEDERAL CHANGES IN TAX LAW I
HAVE NOT. BEEN THROUGH A YEAR
WHERE WE HAVE TO CONFORM TO
FEDERAL TAXES BUT I'VE HEARD.
FROM ALL SIDES DIAL AT THE IT'S
LIKE PUTTING A PAIN IN YOUR AYE.
AYE IN AS WE KNOW.
THERE ARE ITEMS WERE
CALIFORNIA'S DECISION TO CONFORM
OR NOT TO CONFORM WHETHER
SIGNIFICANT IMPACT FOR MIDDLE
CLASS TAXPAYERS. SO WITHOUT WERE
WHAT WE WELCOME DIANNE IN AT THE
ENTIRE.
CHAYES TAX FOURTEEN DID HEARING
WE ARE SO GRATEFUL
I THAT YOU HAVE AGREED TO BE A
TO TESTIFY HERE TODAY. GET I
WANT TO SAY THIS IS A VERY A
THIS IS A VERY INITIAL OVERVIEW
OF WHAT YOUR SEEN COME IN AND A
VERY INITIAL LOOK.
ON IT WILL GET MORE IN DEPTH
HERE COMING UP IN APRIL SO
WITHOUT FURTHER ADO TO PUT START
BUT THE PAIN IN THE AYE ABOUT WE
ARE GOING TO TURN IT OVER TO THE
FTP TEAM. ARE ON ALL ISSUES I
HAVE FEDERAL TAX REFORM THANK
YOU SO MUCH FOR JOINING US
FUNDING TO STEP OFF THE DICE FOR
ONE MINUTE LITERALLY. AYE AND
WE'LL BE RIGHT BACK WITH YOU BUT
TIENE IF YOU WANTED TO SOFT
PLEASE THANK YOU SO MUCH.
YOU THANK YOU FOR ALLOWING US TO
COME TODAY FIRST OF ALL I ANT
TO INTRODUCE THE PEOPLE THAT ARE
HERE AT THE TABLE.
I HAVE JOHN VEENSTRA WHO IS AND
LEGISLATIVE ANALYST'S HE'S OUR
CONFORMITY SPECIALIST.
AND LEGISLATIVE SERVICES AND
THEN. AND BRISTLING SEND YOU SEE
ASSISTANT CHIEF COUNSEL AND OF
TB AND THEN BEHIND ME AT ALAN
FOR HUSKY HE'S THE CHIEF
ECONOMIST OF TV.
SARAH AND I'M THE LEGISLATIVE
DIRECTOR OF FRANCHISE TAX BOARD.
SO MY PRESENTATION WILL COVER
SOME INITIAL IMPRESSIONS AS HE
SAID.
I HAVE OUR REVIEW OF THE
LANGUAGE THAT WAS CONTAINED IN
THE TAX CUTTING JOBS ACCESS ALSO
KNOWN AS HR ONE.
PLEASE KEEP IN MIND FRANCHISE
TAX BOARD WILL BE ISSUING A
SUMMARY FEDERAL INCOME TAX
CHANGES.
THE REPORT WITH REVENUE IMPACTS.
BY APRIL TWENTIETH TWO THOUSAND
EIGHTEEN ASSETS REQUIRED BY
STATUTE.
AND A COUPLE OF GENERAL
OBSERVATIONS FIRST I'D LIKE TO
COVER.
NUMBER ONE IS GENERALLY THE
PROVISIONS OF THE FEDERAL
LANGUAGE ARE AFFECTED FOR
TAXABLE YEARS BEGINNING AFTER
DECEMBER THIRTY FIRST TWO
THOUSAND SEVENTEEN. MEANING THAT
THEY WILL AFFECT TWO THOUSAND
EIGHTEEN FEDERAL TAX RETURNS
THAT WILL BE FILED IN TWO
THOUSAND AND NINETEEN.
ALTHOUGH THERE ARE A FEW
PROVISIONS THAT ARE RETROACTIVE.
NEVER TO THE NEXT GENERAL
OBSERVATION IS THAT THE PERSONAL
CONTACT PROVISION CHANGES IN THE
NEW FEDERAL. LAW ARE TEMPORARY
THERE GENERALLY ABOUT EIGHT
YEARS WHERE AS A CORPORATE
PROVISIONS ARE GENERALLY
PERMANENT.
SO I'M GOING TO COVER AND BEFORE
SURETO COVER SOME OF THE ITEMS
IN THE NEW FEDERAL ACTED LIKE TO
TALK A LITTLE BIT ABOUT
CONFORMITY TO ADDRESS.
HOW THE SUBTLE CHANGES WILL
AFFECT CURRENT STATE LAW?
GENERALLY THE CHANGES IN HR ONE
WILL NOT AUTOMATICALLY CHANGE
CALIFORNIA'S TAX LAW.
THE CALIFORNIA LEGISLATURE
CREATED THE CONCEPT OF THE
SPECIFIED DATE SO WE CAN ALL
EASILY IDENTIFY WHICH VERSION.
OF THE INTERNAL REVENUE CODE
BASED ON A SPECIFIED DATE.
TWO APPLY TO A SPECIFIC TAX
LAWYER FOR CALIFORNIA PURPOSES.
THE LEGISLATURE DECIDES WHAT THE
SPECIFIED DATE SHOULD BE BY
CODIFYING THE DATE AND THE CAL
CALIFORNIA REVENUE AND TAXATION
CODE.
CURRENTLY CALIFORNIA SPECIFIED
DATE IS JANUARY FIRST TWO
THOUSAND AND FIFTEEN.
THIS MEANS THAT FOR PROVISIONS
THAT ARE IN ACTIVE FOR FEDERAL
PURPOSES IN TWO THOUSAND SIXTEEN
OR SEVENTEEN. CALIFORNIA WOULD
NOT CONFIRM TO THIS PROVISIONS
BUT WOULD INSTEAD CONFORM WITH
LIMITED EXCEPTIONS TO THE
INTERNAL REVENUE CODE AS IT READ
ON JANUARY FIRST TWO THOUSAND
AND FIFTEEN.
THE SPECIFIED DATE FOR FEDERAL
CONFORMITY DOESN'T APPLY TO
EVERY SECTION OF THE REVENUE
TAXATION CODE.
THERE ARE SOME EXCEPTIONS FOR WE
HAVE AUTOMATIC CONFORMITY SOME
OF THE EXAMPLES OF THOSE ITEMS
WOULD BE. MESSED PENSION
PROVISIONS AS WELL AS THE FILING
STATUS PROVISIONS.
SO UNLESS CALIFORNIA
SPECIFICALLY ENACTS LEGISLATION
TO CONFORM TO THE PROVISIONS IN
HR ONE MOST CHANGES OF THE ACT
WILL NOT APPLY.
TO ILLUSTRATE THIS OP COVER
SEVERAL PROVISIONS FROM HR ONE
AND WHAT THE IMPACT IS TO
CALIFORNIA.
TAX LAW.
BUT FIRST LET'S GO OVER THE
CHANGES IN THE TAX RATES.
ON THE CORPORATE SIDE UNDER
PRIOR FEDERAL LAW THERE WAS A
PROGRESSIVE TAX RATE WITH A TOP
A TOP TAX RATE HAVE AT THIRTY
FIVE PERCENT.
UNDER HR ONE THE CORPORATE TAX
RATE IS NOW A FLAT TWENTY ONE
PERCENT.
CALIFORNIA'S CORPORATE INCOME
TAX RATE WILL REMAIN THE SAME WE
DON'T CONFORM TO THOSE CHANGES.
THE ALTERNATIVE MINIMUM TAX AT
THE CORPORATE LEVEL IS FULL
REPEAL.
THE FEDERAL LEVEL ANY EXISTING
ALTERNATIVE MINIMUM TAX CARRY
FORWARD CAN BE USED TO OFFSET
THE CORPORATE TAXPAYERS REGULAR
TAX LIABILITY AND IS REFUNDABLE
WITHIN LIMITS STARTING IN TWO
THOUSAND AND NINETEEN.
CALIFORNIA'S CORPORATE.
ALTERNATE MINIMUM TAX RULES
REMAINED THE SAME AS BEFORE HR
ONE BECAUSE WE DON'T CONFORM TO
THESE THE FEDERAL CHANGES.
ON THE PERSONAL INCOME TAX SIDE
FOR INDIVIDUAL TAX RATES.
AND THE.
TAX ALL INCOME TAXES.
SORRY INCOME BRACKETS HAVE BEEN
REVISED.
AND I HANDED OUT. AND A LITTLE
TWO PAGE HANDOUT AND THAT KIND
OF COVERS AT THE FIRST PAGE THE
FRONT AND BACK FOR TWO THOUSAND
AND SEVENTEEN. AND THE SECOND
PAGE FROM BACKER FOR THE NEW
AMOUNTS UNDER HR ONE.
SO THE TOP RATE.
WILL BE THIRTY SEVEN PERCENT
WHEREAS UNDER PREVIOUS LIVES.
IT WAS THIRTY NINE POINT SIX
PERCENT.
AND THE AMOUNT FOR THE TAXABLE
INCOME BRACKETS HAVE ALSO
INCREASED THE SO AND YOU CAN
LOOK AT THAT ON THE HANDOUT.
SEEKING COMPARED TABLE SIX AND
SEVEN ON THE FIRST PAGE TWO
THOUSAND SEVENTEEN AS COMPARED
TO TABLES THREE AND FOUR ON THE
SECOND PAGE.
THE ALTERNATIVE MINIMUM TAX WILL
BE A LESSER. BURDEN ON
INDIVIDUAL TAXPAYERS.
FOR IN THE PERSON I CAN
TAXPAYERS THE EXEMPTION AMOUNTS
HAVE INCREASED SIGNIFICANTLY AS
WELL AS THE PHASE OUT THRESHOLDS
HAVE INCREASED CONSIDERABLY.
CALIFORNIA DOES NOT
AUTOMATICALLY CONFORM TO THESE
FEDERAL CHANGES SO THE LOWER
EXEMPTION AMOUNTS FOR MT ARE
RETAINED.
SO NOW THAT WE'VE COVERED THE
TAX RATES QUICKLY LET'S DISCUSS
ABOUT LET'S DISCUSS SOME
PERSONAL INCOME TAX PROVISIONS
IN THE NEW FEDERAL TAX LAW TO
BEGIN WITH I'LL START WITH THAT
PERSONAL EXEMPTIONS STANDARD
DEDUCTIONS AND CHILD TAX CREDIT.
PREVIOUSLY A TAXPAYER TO CLAIM.
A FOUR THOUSAND FIFTY DOLLAR
PERSONAL EXEMPTION FOR
THEMSELVES THEIR SPOUSE AND EACH
CHILD WHICH WOULD LOWER THE
TAXPAYER'S TAXABLE INCOME.
NOW PERSONAL EXEMPTIONS HAVE
BEEN ELIMINATED BUT TAXPAYERS
WILL BE ALLOWED A HIGHER
STANDARD DETECTION. THE AMOUNT
IS ALMOST DOUBLE THE PREVIOUS
STANDARD DEDUCTION.
THAT CALIFORNIA WE WILL STILL
ALLOW THE EXEMPTION CREDITS AND
WE HAVE NOT INCREASED THE
STANDARD DEDUCTION SO MANY
TAXPAYERS WILL NOW ITEMIZE FOR
CALIFORNIA THAT WILL TAKE THE
STANDARD DEDUCTION FOR FEDERAL
PURPOSES.
SO I AM ON THE CHILD TAX CREDIT
INSTEAD OF THE CHILD TAX CREDIT.
WHICH WAS PREVIOUSLY ONE
THOUSAND DOLLARS.
PER CHILD. THERE'S A FAMILY
CREDIT OF TWO THOUSAND DOLLARS
FOR QUALIFYING CHILD UNDER THE
AGE OF SEVENTEEN AND FIVE
HUNDRED DOLLARS FOR EACH
DEPENDENT.
WHO IS NOT A QUALIFYING CHILD
UNDER THE AGE OF SEVENTEEN?
AND THERE IS A MAXIMUM
REFUNDABLE AMOUNT ON THAT CREDIT
IN IT WOULD BE FOURTEEN HUNDRED
DOLLARS AT THE FEDERAL LEVEL.
AND THESE AMOUNTS ARE SUBJECT TO
PHASE OUT
THRESHOLDS AND CALIFORNIA DOES
NOT HAVE A COMPARABLE CHILD TAX
CREDITS THAT WE DON'T CONFORM TO
THAT.
SO NEXT I'M GOING TO GO OVER AND
A FEW PROVISIONS FOR THEM THAT
RELATE TO ITEMIZED DEDUCTIONS.
AND THAT STATE LOCAL TAX.
DEDUCTION SALT HAS BEEN IN THE
NEWS FREQUENTLY SO I'M GONNA GO
AND COVER THAT ONE FIRST.
UNDER THE OLD FEDERAL LAW
TAXPAYERS CAN DEDUCT ONE HUNDRED
PERCENT OF THEIR STATE AND LOCAL
TAXES INCLUDING INCOME AND
PROPERTY TAXES. AS AN ITEMIZED
DEDUCTION ON THEIR FEDERAL
RETURN. UNDER THE NEW LAW THAT
CAN DETECT A TOTAL OF THAT TEN
THOUSAND DOLLARS IN STATE LOCAL
INCOME TAX.
COMBINED. THEM AND THAT AMOUNT
WOULD BE. FIVE THOUSAND DOLLARS
FOR MARRIED FILING SEPARATE
TAXPAYERS.
ALSO THERE'S A PROVISION IN HR
ONE THAT SPECIFICALLY DISALLOWS.
CPAP PREPAYING STATE OR LOCAL
INCOME TAX FOR TAX LAWYERS
BEGINNING AFTER DECEMBER THIRTY
FIRST TWO THOUSAND SEVENTEEN.
AB SO THE CALIFORNIA TREATMENT
IS THAT CALIFORNIA DOES NOT
ALLOW AN ITEMIZED DEDUCTION FOR
STATE INCOME TAX.
AB DEDUCTION BUT DOES ALLOW
DEDUCTION FOR PROPERTY TAX AND
AT DEDUCTION IS NOT. SUBJECT TO
CAP.
AS IT IS UNDER THE FEDERAL THE
NEW FEDERAL LAW.
THEM.
MORTGAGE INTEREST DEDUCTION IS
ANOTHER ITEMIZED DEDUCTION THAT
MANY TAXPAYERS UTILIZE.
UNDER THAN NEW FEDERAL TAX LAW
HR ONE SUSPENSE HOME EQUITY LOAN
INTEREST DEDUCTIONS FOR TAX
LAWYERS AFTER DECEMBER THIRTY
FIRST TWO THOUSAND SEVENTEEN.
APPROACH TWENTY TWENTY SIX.
ALSO HR ONE AT THE LIMITATION OF
SEVEN HUNDRED FIFTY THOUSAND
DOLLARS.
WORSE HALF OF THAT AMOUNT THREE
UNDER SEVENTY FIVE THOUSAND
DOLLARS FOR MARRIED FILING
SEPARATE OF DEBT INCURRED FOR
WHICH AN INTERESTED ACTION IS
ALLOWED FOR TAX LAWYERS AFTER
DECEMBER THIRTY FIRST.
TWO THOUSAND SEVENTEEN PRIOR TO
TWENTY TWENTY SIX.
TAXPAYERS WITH HOME LOANS MADE
PRIOR TO DECEMBER FIFTEENTH TWO
THOUSAND SEVENTEEN WOULD NOT BE
AFFECTED BY THE LOWER CAP. THEY
WOULD STILL. FIVE SHOULD BE AND
MILLION DOLLAR LIMITATION.
AND BECAUSE CALIFORNIA DOES NOT
CONFORM TO THE DM LOWER.
LIMITATION HAVE SEVEN HUNDRED
THOUSAND WE WOULD RETAIN THE
MILLION DOLLAR LIMITATION.
FAR ITEMIZED ACTION.
NEXT UP TALK A LITTLE BIT ABOUT
THE DISASTER LAST DEDUCTION
UNDER PREVIOUS FEDERAL LAW AND
CURRENT CALIFORNIA LAW. A
TAXPAYER CAN CLAIM ITEMIZED
DEDUCTIONS.
CORD PROPERTY LOSSES THAT AREN'T
REIMBURSED BY INSURANCE IN THE
SAN FROM NATURAL DISASTERS FIRES
ACCIDENTS OR OTHER EVENTS.
THE TOTAL OF A TAXPAYERS LOSSES
ON PERSONAL PROPERTY MISS EXCEED
TEN PERCENT OF YOUR ADJUSTED
GROSS INCOME.
WITH THE NEW FEDERAL LAW
TAXPAYERS MAY CLAIM PERSONAL
CASH THE LOSSES ONLY THE DAMAGES
ATTRIBUTABLE TO DISASTER
DECLARED BY. THE PRESIDENT.
THIS LIMITATION.
SORRY CAME TO MIND I TALK ABOUT
THE TAX CHECK OFF I'M GETTING
YEAH I DON'T GET IT I GET IT I
GET IT INTO.
PLEASE KEEP.
OKAY SO ON THE DISASTER LESS
LIMITATION PART DISASTER LAST.
THIS LIMITATION STARTS IN AFTER
DECEMBER THIRTY FIRST TWO
THOUSAND SEVENTEEN. AND YEARS
PRIOR TO TWENTY TWENTY SIX.
THE NEXT THE PROVISIONS OF
ITEMIZED DEDUCTIONS COVER ABOUT
TALK ABOUT. COVER MEDICAL
EXPENSES AND REIMBURSES EMPLOYEE
RELATED EXPENSES TAX PREPARATION
SIX SEVEN.
FOR MEDICAL EXPENSES FEDERAL LA
LOWER DIGESTIVE CHRIS INCOME
THRESHOLD FORWARD TWENTY
SEVENTEEN AND TWENTY EIGHTEEN
FROM.
THE CURRENT TEN PERCENT TO SEVEN
AND A HALF PERCENT THEREBY
POTENTIALLY INCREASING A
TAXPAYERS ALLOWED WE DEDUCTIONS
FOR MEDICAL EXPENSES. BUT THE
THRESHOLD GOES BACK TO TEN
PERCENT AND TWENTY NINETEEN.
CALIFORNIA CURRENTLY USES THIS
SEVEN AND A HALF PERCENT
THRESHOLD. WHICH MEANS FOR THE
FEDERAL DEDUCTIBLE MOUNTS AND
TWENTY SEVENTEEN AND EIGHTEEN
WILL BE THE SAME FOR CALIFORNIA.
AND THE DIFFERENCE AFTER THAT.
FEDERAL REPEAL SUMMIT THE
MISCELLANEOUS ITEMIZED
DEDUCTIONS EXCEED TWO PERCENT OF
ADJUSTED GROSS INCOME STARTING
IN TWENTY EIGHTEEN.
DOES ITEMS THAT. THOSE ARE ITEMS
LIKE UNREIMBURSED EMPLOYEE
RELATED EXPENSES.
I'VE JOB TRAVEL YOU NEED TO USE
IT AND JOB EDUCATION EXPENSES.
AND ALSO THERE'S A SAFE DEPOSIT
BOX FEES INVEST MY EXPENSES AND
TAX PREPARATION FEES SO THOSE
WILL BE TbM DISALLOWED BUT THEY
WON'T. BE ALLOWED ANYMORE
CALIFORNIA DOESN'T CONFORM.
TO THE CHANGES AN ITEMIZED
DEDUCTIONS AND SO THEY WILL
STILL BE DEDUCTIBLE ON A
CALIFORNIA. TAX RETURN FOR THE
TAXPAYER.
SO. THAT'S WHY I'M COMING FOR
THE PERSONAL INCOME TAX I NOW
THE BUSINESS ENTITY THAT ARE
PROVISIONS.
THAT WE ARE TO COVERED THAT THAT
FOR CORPORATIONS A TAX RATE WILL
BE TWENTY ONE PERCENT NOW
INSTEAD OF USING THE PROGRESSIVE
TAX RATE THAT COULD HAVE BEEN AS
HIGH AS THIRTY FIVE PERCENT.
SO IN A TO TALK ABOUT THE PASSED
THROUGH DEDUCTION.
THAT PASSED THROUGH ENTITIES ARE
ALLOWED A DEDUCTION FOR
PERCENTAGE OF THEIR TAX GOING
C#M. GENERALLY TWENTY PERCENT.
STARTING IN TWENTY EIGHTEEN
EIGHTIES ACTUAL BE ABOUT FOR
INDIVIDUAL TAXPAYERS WHO HAVE
QUALIFIED BUSINESS INCOME FROM A
PASS THROUGH ENTITY.
WHICH WOULD BE A PARTNERSHIP AS
CORE AS LIMITED LIABILITY
COMPANY TREATED AS A PARTNERSHIP
OR A SOLE PROPRIETORSHIP.
AND SO THAT'S TO BE TREATED.
AB.
THOSE OF THE CIVIC TO LIMITATION
SO SERVICE BUSINESSES ALSO HAVE
ADDITIONAL LIMITATIONS ON THIS.
SEC FOR A SIMPLE GENERAL EXAMPLE
BECAUSE IT CAN GET VERY
COMPLICATED IF YOU LOOK AT THE
FORMULA SIMPSON GIVE A SIMPLE
EXAMPLE IF A PASS THROUGH ENTITY
MAKES AND HUNDRED THOUSAND
DOLLARS AND PASSES. THEM INCOME
THROUGH. AT FIFTY PERCENT TO
INDIVIDUALS PARTNER.
THAT INDIVIDUALS DETECTION
TENTATIVELY EQUALS.
TEN THOUSAND DOLLARS THAT'S
TWENTY PERCENT.
HAVE THE FIFTY PERCENT
DESCRIPTION OR OF A HUNDRED
THOUSAND.
DOLLARS SO THERE'S A NUMBER OF
LIMITATIONS AS I SAID ON THAT
FORMULA SO I WON'T GO INTO THAT
FLEETING PRETTY ON THAT ONE.
AND AS FOR CALIFORNIA TREATMENT
CALIFORNIA DOES NOT ALLOW SUCH A
DEDUCTION.
AND THE NEXT TOPIC AND WE'LL
DISCUSSES NET OPERATING LOSS
HR WHEN LIMITS A NET OPERATING
LOSS DEDUCTION TO EIGHTY PERCENT
OF TAXABLE INCOME DETERMINED
WITHOUT REGARD TO THE DEDUCTION.
AND REMOVES THE TWENTY YEAR
CARRY FORWARD LIMITATION.
UNDER THE NEW FEDERAL LA THE TWO
YEAR NET OPERATING LOSS CARRY
BACK AND THE SPECIAL CARRY BACK.
PROVISIONS HAVE BEEN REPEALED
THE PROVIDES FOR A TWO YEAR
CARRY BACK IN THE CASE OF
CERTAIN DISASTER LOSSES INCREASE
IN THE TRADE. OR BUSINESS AND I
HAVE FARMING OR BY A CERTAIN
SMALL BUSINESSES.
CALIFORNIA STILL ALLOWS CARRY
BACKS AND CARRY FORWARDS WITHOUT
THE EIGHTY PERCENT LIMITATION
BECAUSE CALIFORNIA DOES NOT
CONFORM TO THIS FEDERAL CHANGE.
DEPRECIATION IS THE NEXT ITEM OF
TALK ABOUT M. HR ONE THERE'S A
HUNDRED PERCENT EXPENSING
THROUGH BONUS DEPRECIATION OF
CERTAIN BUSINESSES PRESENCE
ASSETS PLACED IN SERVICE AFTER
SEPTEMBER TWENTY SEVENTH TWO
THOUSAND SEVENTEEN.
THROUGH DECEMBER THIRTY FIRST
TWENTY TWENTY TWO UNDER THE NEW
FEDERAL LAW.
AND THEN THE AMOUNT OF THE
PERSON FINISHED APPRECIATION
ALLOWED IS THEN PHASED OUT OVER
THE FOUR YEARS TIME DOWN TO
TWENTY PERCENT AND TWENTY TWENTY
SIX.
BUT SOMETHING TO POINT OUT IN
THIS PROVISION THE PROPERTY DOES
NOT NEED TO BE BRAND NEW AS IN
PREVIOUS LIVES THE PROPERTY NEED
ONLY BE NEW TO THE TAXPAYER.
SO THAT WAS INTERESTING.
CHANGE. SO UNDER FEDERAL ANOTHER
PART OF IT DEPRECIATION
ADJUSTMENT IS SAD.
SECTION ONE SEVENTY NINE SO
UNDER FEDERAL LAW. INTERNAL
REVENUE CODE SECTION ONE SEMI
NINE A TAXPAYER CATHOLIC TO
RECOVER ALL OR PART HAVE.
BECAUSE OF CERTAIN QUALIFYING
PROPERTY AT TO LIMIT.
BY DETECTING IN THE YEAR THAT IS
PLACED IN SERVICE.
AND.
A TAXPAYER CAN'T LEXUS SECTION
THAT WANTS ME NINE DEDUCTION
INSTEAD OF RECOVERING THE COST
BY TAKING DEPRECIATION
DEDUCTIONS THAT'S EXISTING LAW.
HR R. SORRY.
ITS CURRENT LAW AND EXISTING LAW
HR ONE CHANGE SOME OF THE RULES
OF IRE SEE SECTION ONE SEMI
NINETY DEDUCTION. THAT LIMITS
HAVE BEEN INCREASED TO ONE
MILLION DOLLARS WITH PHASEOUT
THRESHOLDS BEING INCREASED TO
TWO POINT FIVE MILLION. WITH
BOTH THRESHOLD SUBJECT TO
INFLATION INCREASES FOR TAXABLE
YEARS BEGINNING.
AFTER DECEMBER THIRTY FIRST TWO
THOUSAND AND SEVENTEEN.
THE CALIFORNIA LAMENT IS THAT
TWENTY FIVE THOUSAND DOLLARS IN
THE FACE OUT STARS TWO HUNDRED
THOUSAND DOLLARS BECAUSE WE
DON'T CONFORM TO THE FEDERAL
CHANGES.
THE NEXT ITEM WOULD BE THE
ENTERED NATIONAL INCOME
PROVISIONS IN THIS CAN BE A VERY
COMPLEX.
THEM TOPIC AND SURE THAT WE CAN
TALK ABOUT THIS ONE AND ALL BY
ITSELF GAIN I THINK I'M IT WAS
THE SENATE OR JUST TALK I THINK
IT WOULD BE REALLY HELPFUL IS IF
YOU WOULDN'T MIND PROVIDED THE
COMMITTEE. WITH THE SYNOPSIS YOU
HAVE OF JUST BECAUSE YOU'RE.
YOU'RE THROWN OUT AT SOME
AMAZING INFORMATION TURN ON A U.
ECONOMIES INFORMATION.
A LOT BETTER CONSUMING THE
PRESENTATION TO THE GREAT ON
AFTER THE HEARING WILL COME AND
WORK WITH YOU SO WE CAN SHIP IT
OUT TO THE COMMITTEE MEMBERSHIP.
THAT'S GREAT THANK YOU SO MUCH.
YEAH.
OKAY SINCE FOR THE INTERNATIONAL
INCOME PROVISIONS IS JUST A VERY
HIGH LEVEL VIEW OF THIS.
TUNES AT THE FEDERAL LEVEL HR
ONE CHANGES THE CURRENT U. S.
INTERNATIONAL SYSTEM TO A
TERRITORIAL SYSTEM WERE
GENERALLY ONLY. BURNINGS IN THE
U. S. ARE TAXED IN THE US.
HR ONE ALSO REQUIRES A DEEMED
REPATRIATION OF UNDISTRIBUTED
FOREIGN EARNINGS AND PROFITS ON
THE FINAL TWO THOUSAND SEVENTEEN
FEDERAL TAX RETURN.
THAT CALIFORNIA'S DIFFERENT
CALIFORNIA USES THE WORLDWIDE
COMBINED REPORTING METHOD WITH
THE ABILITY TO MAKE A WATER'S
EDGE ELECTION IN SOME
CIRCUMSTANCES.
CALIFORNIA DOES NOT CONFORM TO
THE DEMON REPATRIATION
PROVISIONS SO ONLY ACTUAL PAGES
DIVIDENDS WILL BE TAKEN INTO
ACCOUNT FOR CALIFORNIA PURPOSES.
WHICH WILL GENERALLY BE.
ONE HUNDRED PERCENT ELIMINATED
FOR WORLDWIDE COMBINED REPORTING
TAXPAYERS AND TWENTY FIVE
PERCENT OF ANY SUCH ACTUAL
EVENTS PAPER WATER'S EDGE
ELECTORS WILL BE POTENTIAL
SUBJECT.
TO CALIFORNIA TAX AFTER THE
APPORTIONMENT AND ALLOCATION AS
APPLICABLE.
SO I'M NEXT ON TO ESTATE AND
GIFT TAXES INDEED LIFETIME
EXCLUSION AT THE FEDERAL LEVEL
WAS INCREASED FROM THE TO SEVER
RIO FIVE MILLION DOLLARS TO TEN
MILLION DOLLARS AND WHICH HAS
DOUBLED FOR MARRIED COUPLES.
FOR DECEDENTS DYING AND GIFTS
MADE AFTER TWENTY SEVENTEEN AND
BEFORE TWENTY TWENTY SIX UNDER
HR ONE.
CALIFORNIA CURRENTLY HAS NO
ESTATE TAX FOR PICK UP TAX.
SINCE THOSE OF THE VARIOUS
PROVISIONS THEY WANTED TO COVER
BUT ALSO ANTICIPATED DAN BUT
GENERALLY THE CHANGES THAT ARE
IN THE NEW FEDERAL LAW. WOULD
NOT AUTOMATICALLY CHANGE
CALIFORNIA'S TAX ON.
AND LAST THE LEGISLATURE DECIDES
TO CONFORM TO THIS. AS A RESULT
OF THE NON CONFORMITY THAT WE
HAVE RIGHT NOW. TAXPAYERS WOULD
NEED TO MAKE SOME ADJUSTMENTS
FROM THERE FEDERAL RETURN TO
PREPARE THE CALIFORNIA RETURN.
THIS WOULD ADD TO THE COMPLEXITY
OF COMPLYING WITH CALIFORNIA TAX
LAWS WHEN THEY PREPARE THEIR
RETURNS AS WELL AS FOR TAX AFTER
PRAYERS.
PREPARING RETURNS FOR INSTANCE
WE EXPECT THAT THE FEDERAL
SCHEDULE A. BIT DETAILS ALL THE
ITEMIZED DEDUCTIONS WILLICH.
IT
QUITE DIFFERENTLY FOR TAXI TWO
THOUSAND EIGHTEEN WITH A VERY
STRANGE JUST ITEMIZED DEDUCTIONS
UNDER HR ONE.
CALIFORNIA WILL STILL ALLOW THE
SEDUCTIONS A SPECIFIED ON
JANUARY FIRST TWO THOUSAND
FIFTEEN AS EXPERTS NOW THAT'S A
SPECIFIED DATE. AND TAXPAYERS
WON'T BE ABLE TO REALLY UTILIZE
THEIR FEDERAL SCHEDULE A AS WE
CURRENTLY KNOW IT.
THESE CHANGES WILL REQUIRE THAT
TAXPAYERS KEEP MORE
DOCUMENTATION TO SUPPORT THE
MOUTHS OF THEIR REPORT ON THE
CALIFORNIA TAX RETURNS FOR.
THEY MADE SURE OF THAT FOR
FEDERAL US DIFFERENT THEY MAY
NOT KEEP SOME OF THAT
DOCUMENTATION BUT THE HAVE TO BE
AWARE THAT CALIFORNIA THOUGH
STILL NEED. THAT DOCUMENTATION.
AND.
TAXPAYERS SHOULDN'T REMEMBER THE
OLD FEDERAL TAX RULES AND SAVE
THEIR RECEIPTS AS THEY MAY BE
ABLE TO DEDUCT EXPENSES ON THE
CALIFORNIA RETURN.
EVEN THOUGH THEY CAN'T ON THE
FEDERAL. WHERE ENSURE HOW
FEDERAL DATA THAT FTV USES WILL
BE IMPACTED BY EACH ARE ONE? FOR
INSTANCE WILL SOME OF THE FORMS
CHANGE BECAUSE INFORMATION IS NO
LONGER REQUIRED TO BE REPORTED.
TO THE IRS BUT YET FTP WILL
STEAL. NOW WILL STILL NEED THAT
INFORMATION TO VERIFY.
AMBASSADOR. REPORT ON OUR
RETURNS. FOR EXAMPLE YOU HAVE
THE FORM TEN NINETY EIGHT WHICH
IS A MORTGAGE INTEREST
STATEMENT.
SO IT MAY NOT CONTAIN ENOUGH
DETAILED INFORMATION ON THE
MORTGAGE INTEREST ON A PRINCIPAL
RESIDENCE FIRST OF INTEREST ON
IT EQUITY LOAN VIA FOR. FEDERAL
PURPOSES ATTACKS FOR CAN'T
REPORT THE EQUITY LOAN INTEREST
ANY LONGER BUT FOR CALIFORNIA
THEY SO WELL SO WE'LL HAVE THAT
DIFFERENCE.
AND.
SO IF TO BE WILL NOT HAVE THE
INFORMATION TO SET A MAN ON
INTEREST PAID ON EQUITY LOAN.
ANOTHER AREA IS FTP MAY NEED TO
VERIFY SOME AMOUNTS AND
INFORMATION THAT TAXPAYERS
REPORT ON THE CALIFORNIA RETURN.
AS A SAM OUNCE FOR INFORMATION
WILL NO LONGER BE REQUIRED TO BE
REPORTED TO THE IRS.
FOR EXAMPLE PATENT ALIMONY
DEDUCTION AND INCOME FROM
ALIMONY CAN GET MOVING EXPENSES.
OUR RETURN VALIDATION WILL BE
IMPACTED BECAUSE WE WON'T HAVE.
THAT SAME INFORMATION THAT WE
USED IN THE PAST.
TO VALIDATE CALIFORNIA RETURN
INFORMATION WHAT WE IS THE
FEDERAL DATA TO VALIDATE THAT.
ANOTHER AREA THAT WILL BE
IMPACTED IS THE.
FEDERAL AUTO REPORTS THE
FEDERAL OUGHT FOR INFORMATION
THAT THE IRISH SHARES WITH
FRANCHISE TAX BOARD WILL CHANGE
THE FRANCHISE TAX BOARD. MAKES
CORRESPONDING ADJUSTMENTS TO
TAXPAYER RETURNS BASED ON THE
FEDERAL AUDITOR DESMOND'S.
THE AMOUNTS OF FEDERAL ABOUT
ADJUSTMENTS ON CERTAIN AUDIT
ISSUES WILL STOP ARE WILL BE
DIMINISHED.
ESPECIALLY RELATING TO ITEMIZE
DEDUCTIONS AS MORE TAXPAYERS
WILL BE TAKING THE STANDARD
DEDUCTION FOR FEDERAL PURPOSES
BUT WILL SO ITEMIZE FOR STATE
PURPOES SO. YET THAT HAVE
DIFFERENCES IN MORTGAGE INTEREST
PROPERTY TAXES AND REIMBURSE
EMPLOYEES EXPENSES UP.
ITEMS LIKE THAT.
AND AND THEN AS ANOTHER GENERAL
IMPACT TO OUR DEPARTMENT WE
EXPECT THAT OUR PUBLIC SERVICE
STAFF WILL RECEIVE MORE
QUESTIONS FROM TAXPAYERS AND TAX
PREPARERS TO SYSTEM WHEN. AND
DETERMINING HOW THE NEW FEDERAL
TAX CHANGES WILL IMPACT THEM.
THEIR COMPANY TAX AND HOW TO
REPORT THESE CHANGES ON THEIR
RETURNS.
SO IN CONCLUSION I JUST WANTED.
TO REITERATE THAT THE ITEMS I
DISCUSS ARE JUST OUR INITIAL
IMPRESSIONS OF OUR REVIEW OF THE
FEDERAL TAX FROM LANGUAGE. AND
THAT THE.
ANNUAL SUMMARY F. FEDERAL
INCOME LAW AT NOT ANYA THE
SUMMARY I HAVE FEDERAL INCOME
TAX CHANGES REPORT WITH THE
REVENUE PACK. IMPACTS WILL BE
RELEASED TO THE LEGISLATURE AND
POSTED ONLINE APRIL TWENTIETH.
TWO THOUSAND AND EIGHTEEN.
AND NOW ALAN. BUT GO AHEAD AND
TALK ABOUT SOME OF THE REVENUE
AND TAX
AND THE ISSUES WITHOUT.
BECAUSE THE MUCH ONE SEE
AYE-MOORLACH BEFORE WE MOVE ON
IF YOU HAVE ANY QUESTIONS IN THE
SECTION.
STRUCTURE OF INDIAN.
IT'S ABOUT APRIL YOU START DOING
TAX TRANSIENT HER DREAMS YOU
KNOW WHEN YOUR CPA IT'S KINDA
CRAZY SO I'M TRYING TO.
VISUALIZE.
WHAT A FIVE FORTY WILL LOOK
LIKE?
NEXT YEAR.
AND.
I GUESS.
I GUESS WE COULD CHOOSE TO. BE
REAL COMPLEX TO KEEP A LOT OF MY
INDUSTRY.
A IN BUSINESS YOU KNOW BECAUSE
YOU WOULD HAVE MASSIVE
ADJUSTMENTS.
ON THE TAX RETURN.
I MEAN MASSIVE AMOUNT OF BUT
JUST.
SO I'M TRYING TO THINK MISTER
CHAIR.
WHERE DOES LEADERSHIP COME FROM
BECAUSE?
BUT NORMAL APPROACH I'M SURE.
BACK IN NINETEEN EIGHTY SIX YOU
THEY HAVE TO BE PROBABLY JUST
SAID WE WANT TO CONFORM TO.
THE FEDERAL LAW WITH PASSIVE
LOSSES IN ALL THESE NEW CONCEPT
YOU KIND OF WANT TO BE ON.
THE SAME PAGE SKILLS THEN YOU
WOULD HAVE.
YOU KNOW WHAT HURT THE INCOME
TAX.
FOR CALIFORNIA SO.
I'M JUST WONDERING DIANNE.
THERE YOU HAVE TO RELY ON.
THE LEGISLATOR TO PUT A BILL
TOGETHER FOR CONFIRMING OR YOU.
ACTIVELY WORKING WITH SOMEONE.
IN ONE OF OUR HOUSES TO.
CAN I TRY TO MAKE CONFORMITY.
WELL I GOAL.
I THINK THAT.
IT'S STILL FAIRLY EARLY WERE
STILL TRYING TO DIGEST THEM THE
WHOLE BILL. AND THE IMPACT TO
CALIFORNIA AND WE DO HAVE A TEAM
WITHIN FTP.
THAT IS LOOKING CLOSELY AT THIS
IN SOME SEVENTEEN SEVEN BALLOT.
TEAM LOOKING AT SPECIFIC ISSUES
AND.
SO IT IT'S EARLY BUT WE WOULD
HAVE TO RELY ON THE LIST
LEGISLATURE TO AND. EITHER DO
PIECEMEAL CONFORMITY SPECIFIED
DATE CONFORMITY.
PASS SUCH EARLY WHO BUT BUT WE
HAVE A VERY SHORT TIME FRAME
IT'S ALMOST LIKE OUR LAST WEEK
THE MARIJUANA THING YOU GOT TO
HOPE.
DECEMBER AND YOU HAD BETTER GET
IT DONE A LOT SOONER OBVIOUSLY
WE END IN AUGUST.
GROUP SO WE WE GOT TO GET
SOMETHING DONE AND THEN YOU
GOTTA DIGESTED AND PUT IT
TOGETHER THEN YOU GOTTA GET IT
OUT OF.
SPY DEL AND ALL THE OTHER TAX.
GREAT YOU KNOW.
PROBABLY NO PROFESSIONAL
EDUCATION PROVIDERS I MEAN WE
GOT.
THIS IS A TIGHT TIGHT. DEAL.
RIGHT.
AND THE.
REPORT THAT COMES OUT IN APRIL
OF TWENTY EIGHTEEN AND AND
THAT'S OUT THE WAYS AND THAT
WILL HAVE ALL THE REVENUE
IMPACTS SINGING SO OLD. IT WILL
GIVE MORE INFORMATION MORE
DETAILED INFORMATION TO MAKE IT
BETTER AND. DECISIONS AS TO WHAT
TO CONFORM TO WHAT NOT. YOU KNOW
WHAT NOT TO CONFORM TO.
BUT THAT DOES NOT MEAN THAT WE
CAN'T START WORKING WITH
SOMEBODY NOW.
I WOULD JUST WAITING FOR MY
PRACTICE DAYS MISTER CHAIR I'M.
THESE NON CONFORMITY ISSUES.
CAN REALLY SURPRISE A
PRACTITIONER SOMETIMES WHEN IT.
FTP DOESN'T AUDIT THEY SAY OH
YOU TOOK THIS DEDUCTION OR EVEN
DIVIDENDS WERE DIFFERENT.
AND HOW YOUR REPORTED DAVID
INCOME.
SO THERE'S JUST A LOT OF THESE
NONCONFORMITY ISSUES THAT REALLY
MAKE LIFE.
AWKWARD AND.
JUST WONDERING IF IT HAS HAS THE
CAL.
CSUS TO THE SOCIETY OF CPA'S
OBEYED.
PUT TOGETHER.
.
I COMMITTEE TO HELP BE OUTERS IS
INDUSTRY DOING ANYTHING.
AND THEY MAY HAVE SET UP A
COMMITTEE I'M NOT SURE AND THEY
HAVE NOT REACHED OUT TO US WOULD
YOU DO IN EIGHTY SIX.
AYE I CAN GIVE YOU SOME
BACKGROUND. PROBABLY ONLY ONE
HERE WHO WAS THERE THEY WERE
EVEN BORN SEATS APOLOGIZED BUT.
IT BROUGH SLAYING STEMMED FROM.
ASSISTANT CHIEF COUNSEL WHAT
WHAT HAPPENED IN NINETEEN EIGHTY
SIX IS. A CALIFORNIA WAS OUT OF
CONFORMITY FOR AWHILE.
AND THEN SORT OF LITTLE BY
LITTLE AND LIKE YOU POINTED OUT.
THAT FIRST YEAR.
YOU KNOW THERE WERE A LOT OF.
A LOT OF ADJUSTMENTS AND CHANGES
THAT HAD TO BE MADE.
TO THE CALIFORNIA RETURN BUT OF
COURSE LEGISLATURE WAS CONCERNED
ABOUT REVENUE AS THEY ALWAYS
ARE.
AND.
THEN ESSENTIALLY.
OVER THE YEARS WE WE WENT CLOSER
AND CLOSER TO FEDERAL AS.
.
AS IT AS IT. TURNED OUT THAT
MOST OFTHESE DIDN'T REALLY MAKE
A REVENUE DIFFERENT SOMETIMES
THAT WAS A TIMING DIFFERENCE.
.
AND THE THE.
THE E. IS OF REPORTING.
MADE SOME OF THESE THINGS BY
JUST AS A PRACTICAL MATTER.
YOU KNOW YOU JUST HAD TO DO IT
DONT NOW WE'RE IN A DIFFERENT
ENVIRONMENT NOW BECAUSE WE HAVE
PROP TWENTY SIX WE HAVE THE TWO
THIRDS VOTE REQUIREMENT.
THAT'S MUCH MORE STRICT THAN IT
USED TO BE.
SO THERE WAS EIGHT BY MY
RECOLLECTION IS IT WASN'T JUST
AN EASIER TIME THEN.
TO.
.
TO.
GET A LOT OF THESE THINGS
THROUGH WITH THAT BEING SAID I
UNDERSTAND THAT CALIFORNIA
EIGHTY FIVE PERCENT OF OUR
RETURNS ARE EFILE NOW.
AND SO THE FACT YES THIS IS
DIFFICULT IT'S GOING TO BE A BIG
SCHEDULE CA WHICH IS OUR
ADJUSTMENT SCHEDULE. BUT
TURBOTAX'S GOING TO DO IT FOR
YOU FOR YOUR TAX SOFTWARE IS
GOING TO DO IT FOR YOU. THAT THE
RELATIVELY SIMPLE LOW INCOME
RETURNS THAT PART AFFECTED BY
THIS SO.
.
YOU KNOW.
IT WILL LIKELY. YOU WERE GONNA
GET A LOT WE'RE GOING TO GET A
LOT OF FEEDBACK FROM INDUSTRY
THEY'RE GONNA SAY WE REALLY
THINK YOU SHOULD URGE CONFORMITY
IN THIS AREA OR THAT AREA. BUT
NOT THIS AREA BUT IT'S QUITE
POSSIBLE THAT WE WILL HAVE A
YEAR TO WHERE WE HAVE A PRETTY
COMPLEX CALIFORNIA RETURN. BUT
WHEN YOU DO OTHER STATES RETURNS
YOU KNOW LIKE IN A PERFECT WORLD
IT SAYS TAKE YOUR TAXABLE INCOME
FROM YOUR TEN FORTY IN THE JUST.
YET PLY THE RATES AND THEN IT'S
OVER IT'S.
AND I AND I'M WONDERING IF
THERE'S SOME.
WISDOM TO THE.
AND WHETHER WE NEED TO FOCUS NOT
ON CONFORMITY BUT WE JUST SAY
OKAY TAKE THE BOTTOM LINE.
AND LET'S MODIFY OUR TAX.
RATE SCHEDULE. SO AT THE END OF
THE DAY WE WIND UP AND THAT WHAT
WE WANTED TO BE.
FOR EXPECTED TO BE. AND SO THAT
WOULD BE THE SITE.
THAT MIGHT WIPE OUT INTO THE.
BUT. YOU KNOW YOU WOULD HAVE TO
HAVE CALIFORNIA EXPERTS BUT YOU
WOULD CERTAINLY SIMPLIFY WHICH I
THINK IS AT THE END OF THE DAY
WHAT EVERYBODY WANTS.
I THINK ABOUT HOW DO YOU CHANGE
RATES. BUT I THINK THAT THAT IT
pTHE BIGGEST CHALLENGE THAT
WE'RE
GONNA HAVE.
.
THERE ARE GOING TO BE.
THOUSAND OPINIONS ARE ON.
EACH OF.
THE WAYS THE STATE COULD
POTENTIALLY CONFORM WITH THE TAG
THAT FEDERAL TAX BILL. A AND MY
UNDERSTANDING NAY NOT GOING
THROUGH THIS.
I AS IN NINETEEN EIGHTY SIX I
THINK I WAS IN ELEMENTARY
SCHOOL.
THE BUT.
WOULD SAY THIS IS THAT AND IT.
THIS IS ONE OF THE REASONS WHY
IT'S BEEN ONE OF THE TOUGHEST
CHALLENGES THAT THE STATE WILL
FACE IN TWO THOUSAND EIGHTEEN.
THERE ARE OUR OPINIONS ALL OVER
THE MAP.
I MEAN WHO IS GOING TO BENEFIT
IS THE QUESTION THAT EVERYONE IS
GOING TO DEBATE.
SO WHY THERE HAVE BEEN SOME VERY
INITIAL DISCUSSIONS.
ABOUT.
WHAT THE STATE CAN DO TO CONFORM
OR CANDIDLY NOT?
?
IT'S GONNA HAVE TO PLAY OUT THIS
OTHER PROCESS IS GOING TO PLAY
OUT IN THE COMING WEEKS.
I AND THE BOTTOM LINE AT THIS
WILL BECOME MORE OF A SPRINT
IF WE TAKE A STEP RATHER THAN A
MARATHON. OUT HERE IN TWO
THOUSAND EIGHTEEN IF THERE'S A
CONFORMITY BILL THAT WILL MOVE
FORWARD.
WOULD THAT BE ACCURATE YEAH I I
THINK SO I'M. I WOULD ALSO ADD I
WAS ACTUALLY GONNA BEFORE WE GET
INTO SOME OF THE OTHER STUFF I
WAS ACTUALLY GONNA TAKE A FEW
MOMENTS.
TO GO BACK OVER.
SOME OF THOSE BUT DIANNE SAID
IT MAY BE JUST ONE LITTLE LAYER
DEEPER PLEASE.
BUT THE GOAL HERE BEING TO HELP
ESTABLISH A FRAMEWORK.
THAT I THINK WILL MAKE IT EASIER
FOR YOU GUYS TO ASSESS WHEN
TRADE OFFS ARISE BETWEEN THE
GOALS OF CONFORMITY AND OTHER IN
IMPORTANT POLICY GOALS.
AND SO WANTED TO TO GO FOR A
COUPLE OF THINGS I YOU KNOW JUST
FIRST FOUR REMEMBER WHY DO WE
WANT CONFORMITY WILL BOTTOM LINE
IS WE WANT TO MAKE IT EASIER FOR
TAXPAYERS TO COMPLY WITH THE
LAW.
FOR FTD TO ENFORCE THE LAW.
ABOUT WHAT DO YOU NEED TO DO
THAT WE NEED TO HAVE THE
INFORMATION AVAILABLE TO KNOW
WHAT THE TAX CODE ACTUALLY IS
AND SO WE NEED TO THINK. WHERE
DOES THE INFORMATION COME FROM
WHAT INFORMATION ARE WE LOSING
BECAUSE A FEDERAL?
REFORM HOW DIFFICULT WOULD IT BE
TO REPLACE THAT INFORMATION.
AND EVEN THERE EVEN IF YOU CAN
GET THE INFORMATION HOW MUCH OF
HIS AT HAVE A HASSLE IS IT FOR
TAXPAYERS DOES IT MAKE A
DIFFERENCE IF THEY'RE USING A
CPA R. OF SOFTWARE. HOW MUCH OF
A HASSLE IS IT FOR US ON AUDIT
YOU KNOW HOW MUCH INFORMATION WE
LOSING JUST BECAUSE IT'S AN AREA
THE IRISES NO LONGER AUDITING?
AND THEN YOU HAVE TO WEIGH THAT
AGAINST ALL OF THE OTHER
IMPORTANT POLICY GOALS FOR A.
CONFORMITY MAY A LINE OR
CONFLICT WITH GOAL SUCH AS
REVENUE GOALS. PERCEPTIONS OF
FAIRNESS IN THE TAX CODE
ECONOMIC INCENTIVES THAT YOU
THINK SHOULD OR SHOULD NOT BE IN
THE TAX CODE AND AND YOU HAVE TO
WEIGH THE. WAY THESE THINGS
AGAINST EACH OTHER.
HA AND SO ONE POINT IS GONNA
MAKE IT IS IS IT DOES HELP A
LITTLE BIT TO THINK ABOUT THE
FLOW OF HOW YOU CALCULATE TAXES.
I'D. REAL BRIEFLY RIGHT FIRST
YOU ADD UP ALL THE DIFFERENT
THINGS THAT COUNTED IN BECAUSE
INCOME. CAN YOU SAY SUMMER
INCLUDED SOME ARE EXCLUDED THEN
ONCE YOU HAVE YOUR INCOME YOU
TALK ABOUT ALL THE THINGS WE
THINK.
SHOULD BE DEDUCTIONS TO GET FROM
THEIR TAXABLE INCOME. AND THEN
YOU GO FROM TAXABLE INCOME TO
TAX.
.
IN GENERAL IT IS HARDER TO BE
OUT OF CONFORMITY ON
CALCULATIONS OF INCOME AND.
SOMETIMES AND APPRECIATION IT'S
RELATIVELY EASY TO BE OUT OF
CONFORMITY A.
I CALCULATION OF TAX RATE
CALCULATION ATTACKS.
DEALS WITH RATES AND CREDIT SEE
AND THERE'S NO BOTTOM THINK
ANYBODY HERE THAT WOULD SAY GEE
IF YOU'RE NOT. TWENTY FIVE
PERCENT FEDERAL BRACKET SHOULD
BE IN A TWENTY FIVE PERCENT
STATE BRACKET WE KNOW WE WANNA
BE OUT CONFORMITY THEIR.
A LOT.
BUT AGAIN IT IN TERMS OF OF
CONFORMITY ISSUE WHAT WE'RE
REALLY TALKING ABOUT IS. IT'S A
LOT EASIER IF THE INFORMATION IS
AVAILABLE ON THE FEDERAL RETURN
ANYHOW THAN A IF IT
SO LET'S WALK THROUGH A COUPLE
OF EXAMPLES ON THE START WITH
ONE FAIRLY OBSCURE ONE. NOT
PARTICULARLY IMPORTANT IN TERMS
OF THE NUMBER OF TAXPAYERS THE
AMOUNT OF MONEY INVOLVED BUT TO
ILLUSTRATE SOME OF THESE ISSUES.
THERE WAS A PROVISION THAT'S
BEING REMOVED THAT EXCLUDED FROM
INCOME
SIR PAYMENTS MADE TO BICYCLE
COMMUTERS.
AND WHETHER OR NOT IT'S AND
IT'S A HARD FOR CALIFORNIA TO
CONFORM DEPENDS ON HOW THIS
INCOME IS TREATED RIGHT IN A
PERFECT WORLD.
EMPLOYERS WOULD BE GIVEN
INSTRUCTIONS YOU KNOW WHISK
WAGES HERE WAS THE PAYMENTS FOR
THIS COMMUTE.
THE IN IT AND SENT OFF SOMEWHERE
ELSE AND FED AND THE FED WOULD
HAVE A LINE ON THE FORM THAT
SAYS THAT THIS OTHER THING AND.
AT THAT'S NOT GONNA HAPPEN THIS
ITEM ISN'T IMPORTANT ENOUGH FOR
THEM TO PUT A HOLD ON THE LINE
ON THE FEDERAL FORM TO COVER
THIS ITEM FOR A FEW PEOPLE.
SO THERE ARE TWO WAYS IT COULD
COME AND.
IF WE'RE LUCKY THEY WILL INCLUDE
THIS INCOME IN YOUR TAXABLE
WAGES ON YOUR W. TWO AND THERE
WILL BE A BOX SOMEWHERE ELSE ON
THE W. TO THAT THEY'LL CREATE A
NEW CODE A CUE THAT SAYS THIS
AMOUNT IS DUE TO THIS OTHER
PROVISION. AND IF WE HAVE GOOD
INFORMATION REPORTING FLOWS WE
CAN GO FIND THAT CODE MAKE AN
ADJUSTMENT.
THE CALIFORNIA TAXES IF WERE
UNLUCKY THAT WILL BE THERE IT'LL
JUST BE INCLUDED IN TAXABLE
INCOME.
AND IT WILL BE DIFFICULT FOR.
TAXPAYERS TO KNOW HOW MUCH
INCOME CAN STILL BE EXCLUDED
UNDER CALIFORNIA LAW IT WILL BE
DIFFICULT FOR US TO KNOW IF
THEY'RE REPORTING THE RIGHT
AMOUNT.
AND IT ALSO YEAH SO THAT'S AN
AREA THAT DEPENDING ON HOW. THE
INFORMATION FLOWS CHANGE THERE
MAY BE A MUCH MORE POWERFUL
ARGUMENT FOR CONFORMITY ON ON
SOMETHING LIKE THAT.
.
ANOTHER EXAMPLE. THAT HAS A
WHOLE LOT OF LAYERS TO IT IS
LET'S GO BACK TO THAT THE
EXAMPLE THAT PAYING GIVE A
MINUTE AGO ON THE ALIMONY.
YOU HAVE. PREVIOUS LAW AYE AND
STILL CALIFORNIA LAW.
ALIMONY PAYMENTS ARE DEDUCTED BY
THE PAYER THEY ARE INCLUDED IN
INCOME BY THE RECIPIENT.
BUT NO LONGER FOR. FEDERAL
PURPOSES FOR AGREEMENTS AFTER A
CERTAIN DATE I MIGHT ADD SO IN
THE FIRST THE FIRST THING IS
THERE'S GONNA BE ISSUES IN THE
SHORT RUN THAT THEY'RE GONNA
HAVE TO KEEP THE LINES ON THE
RETURN. AND SOME PEOPLE WILL
HAVE WILL BE USING THE OLD
SYSTEM SOME USING THE NEW
SYSTEM.
BUT AGAIN YOU HAVE TO ASK THE
QUESTION WHAT'S IT WORKS ITS WAY
THROUGH THE SYSTEM FOR PEOPLE
WHO ARE. DOING THIS AT THE
FEDERAL LEVEL WHERE IS THE
INFORMATION GOING TO COME FROM
HOW IS THE STATE GOING TO KNOW.
I AND YOU RUN RISKS ARE EVEN IF
WHAT IF.
WHEN YOU GOT ONE PERSON ONE
TAXPAYER THE NOSE LAW ON THE
OTHER DOESN'T SO EITHER BOTH OF
THEM. YOU GET DEDUCTED ON ONE
SIDE AND NOT INCLUDED ON THE
OTHER OR THE OPPOSITE PROBLEM
WHERE YOU GET IT INCLUDED ON
BOTH SIDES WE WE DON'T WANT
EITHER OF THOSE INCOMES. SO IT
BECOMES MORE CHALLENGING TO
EDUCATE EVERYBODY WHEN THE
CIRCUMSTANCES ARE DIFFERENT IN
DIFFERENT PLACES.
OP AND THE OTHER THING THAT I'M
GONNA THROW IN HERE'S A TWIST IS
EVEN ON SOMETHING LIKE THIS FOR
YOU SAY WELL AT LEAST THE SAME
AMOUNT OF TOTAL INCOME ANYHOW.
THEY'RE STILL REVENUE IMPACT.
WHY BECAUSE PEOPLE WHO PAY
ALIMONY TEND TO BE IN HIGHER TAX
BRACKETS THE PEOPLE WHO RECEIVE
IT?
SO THIS WAS ONE OF THE.
ONE THAT I WE ACTUALLY DID HAVE
SOME GOOD DATA ON AND WE DID A
RUN IF THE. THIS HAD BEEN
CALIFORNIA LAW IN TWENTY FIFTEEN
OUR ESTIMATE IS TAXING LEASE
PAYMENTS AT THE TOTHE PAIR
INSTEAD OF THE RECIPIENT WOULD
HAVE RAISED CALIFORNIA REVENUE.
BY ABOUT A HUNDRED AND FIFTY
MILLION DOLLARS.
EVEN THOUGH IT'S THE SAME AMOUNT
OF TOTAL INCOME.
THEN YOU EVEN GET SUBTLE THINGS
THAT WE CALL BASELINE RIGHT
PRESUMABLY IN THE FUTURE.
THESE AGREEMENTS THE AMOUNT OF
MONEY BEING PAID WILL BE REDUCED
A LITTLE BIT TO REFLECT THE
CHANGING TAX STATUS.
SO EVEN IF CALIFORNIA DOESN'T
CONFORM THERE WILL STILL BE A
TINY LITTLE BASELINE REVENUE
GAIN TO THE EXTENT THAT MORE OF
THE INCOME IS STILL TAXED.
ON THE PAYER SIDE.
AND SO THE THINGS THE ADD THEN
SOME LESSER SO THAT THE REST OF
IT WOULD BE A GAIN OF CALIFORNIA
CONFORMS FULLY. AND YOU CAN SEE
QUICKLY HOW COMPLICATED ALL THIS
STUFF GETS.
.
BUT THAT HAVING BEEN SAID FROM
AN ADMINISTRATIVE PERSPECTIVE
THERE ARE A NUMBER OF EXAMPLES
OF THINGS THAT AS LONG AS IT'S
REALLY ON THE FEDERAL RETURN.
IT'S REALLY EASY.
MECHANICALLY AT LEAST.
.
SOME EXAMPLES.
WHERE LOTTERY INCOME IS INCLUDED
AS INCOME ON THE FEDERAL SIDE
BUT NOT THE STATE SIDE IT'S EASY
FOR US TO MAKE THAT ADJUSTMENT?
?
HEALTH SAVINGS ACCOUNT. SO THEY
HAVE EDUCATOR EXPENSES ARE SOME
DEDUCTIONS THAT ARE AVAILABLE ON
THE FEDERAL SIDE BUT NOT THE
STATE SIDE RIGHT NOW. BENDING
AGAIN IT'S MECHANICALLY
RELATIVELY EASY FOR US TO GO IN
AND MAKE THOSE ADJUSTMENTS
BECAUSE WE KNOW WHERE THE
INFORMATION IS. AND AND WE CAN
LET IT FLOW THROUGH.
REAL QUICK I JUST WENT TO THE
AYE TIME CHECK YEARS WHILE
MAKING SURE THAT WE GET TO
EVERYTHING. AND IT'S A TWELVE
SEVENTEEN WOULD LIKE TO BE A TO
GO THROUGH ABOUT TWELVE. FORTY
FIVE AND IS THERE'S AT LARGE
FIRE RECOVERY MEETING I
APOLOGIZE AS A BUT PLEASE
CONTINUE BUT IT'S ONE MAKE SURE
THAT WE HIT.
EACH OF YOU HERE TODAY YEAH AND
AND SO THE FOR THE FINAL
CATEGORY THERE I'VE ALREADY
TOUCHED ON IS.
THE TAX RATES THEMSELVES IS NO
NEED TO CONFORM AND THAT REALLY
TENDS TO APPLY. TO SPECIAL TAX
RATE THINGS TO WRITE THE THE
EXAMPLE HERE IS.
CALIFORNIA IS NOT CURRENTLY
CONFORMING TO THE SPECIAL TAX
RATESON QUALIFIED CAPITAL GAINS
AND DIVIDENDS. AND MECHANICALLY
IT'S IN SOME SENSE ACTUALLY
EASIER NOT TO GO THROUGH THAT
WHOLE EXTRA CALCULATION LIKE YOU
DO AT THE FEDERAL LEVEL. AND SO
MANY OF THE SAME THING HERE.
CONFORMITY IS NOT A REASON TO
ADOPT.
SPECIAL TAX RATES FOR THE PAST
THREE INCOMES LIKE THE FEDS HAVE
THAT WOULD HAVE TO BE BASED ON
OTHER POLICY CONSIDERATIONS.
SO THAT WAS YOU KNOW THAT WAS
WHAT I WAS GOING TO SAY ABOUT
THAT I WAS GONNA TOUCH REAL
BRIEFLY ON REVENUES.
.
YOU KNOW IT'S IT'S STILL TOO
EARLY I'M NOT I DON'T HAVE ALL
THE ANSWERS THAT I KNOW
EVERYBODY'S WAITING FOR.
BUT I DID WANT TO.
AT LEAST HIGHLIGHTS SOME OF THE
ISSUES THAT ARE INVOLVED IN AND
WARNINGS ABOUT THE REVENUE
ESTIMATES
THAT WERE GOING TO BE.
COMING OUT WEF WHICH OF COURSE
IS TO REMIND EVERYONE.
THAT REVENUE ESTIMATES ARE BASED
ON BOTH THE DTA THAT WE HAVE
AVAILABLE AND.
ASSUMPTIONS ON WHAT HAPPENS TO
THAT DATA AND.
THERE'S A HUGE BLACK.
IN ACTUAL DATA A. WE WHEN WILL
WE ACTUALLY KNOW WHAT PEOPLE
REPORTER ON THEIR TWENTY
EIGHTEEN RETURN.
PICTURE TWENTY EIGHTEEN RETURN.
FILE IN APRIL OF NINETEEN THEM
INTERESTING TERM RETURNS REALLY
WILL COME IN ON EXTENSION IN
OCTOBER OF NINETEEN SO SOMETIME
AT THE END OF TWENTY NINETEEN
WILL REALLY KNOW. WHAT THE
RESPONSE IS WAR? ON THE PORT
SIDE IT'S EVEN WORSE YOU HAVE
CORPORATIONS THAT CAN FILE ON A
FISCAL YEAR BASIS SO RECEIVING
THAT DATE IS ACTUALLY DELAYED BY
AN ENTIRE YEAR. IT WILL BE CLOSE
TO THE END OF TWENTY TWENTY
BEFORE WE HAVE COMPLETE DATA.
ON THE TWENTY EIGHTEEN TAXIS.
AND WHERE THAT HURTS US THE MOST
AND MAKES OUR ESTIMATES THE MOST
UNCERTAIN AND SO I JUST YOU
KNOW.
WE WILL TRY TO FLAG FOR YOU THIS
IS THE IMPORTANCE OPTIONS SO YOU
CAN REALIZE. THESE ARE UNCERTAIN
ESTIMATES AND BE CAREFUL WHAT
YOU DO WITH THEM.
PLACE WHERE IT'S THE BIGGEST
PROBLEM IS WHERE WE EXPECT THE
BIGGEST BEHAVIORAL RESPONSE.
MADE WE KNOW UNDER NORMAL
CIRCUMSTANCES BUT BUT WE'RE NOT
AS GOOD AT PREDICTING HOW.
EFFECTIVE WILL THIS INCENTIVE
ACTUALLY BAY.
WHEN I GIVE YOU THREE EXAMPLES
OF THINGS OUT THERE.
ONE IS THE QUESTION OF WHAT
TYPES OF BUSINESS ENTITIES WILL
EVEN BE SEEING.
THIS BILL HAS COMPETING
INCENTIVES
IT LOWERS THE CORPORATE TAX RATE
WHICH WOULD CAUSE MORE. ENTITIES
TO BECOME CORPORATIONS IT
PROVIDES THIS
DEDUCTION ON PASS THROUGH
ENTITIES WHICH WOULD CAUSE FEWER
VANITIES TO BC CORPORATIONS.
I DON'T EVEN KNOW WHAT THE NET
EFFECT I DON'T YOU KNOW WHICH
DIRECTION.
THE ULTIMATE.
BEHAVIORAL RESPONSE IS GOING TO
BE WHICH MAKES IT VERY HARD TO
THEN GO IN AND MODEL.
WHAT THE ULTIMATE OUTCOME IS
GONNA BE?
?
ANOTHER POINT IS OF COURSE YOU
KNOW WHAT'S NEW RULES ARE IN
PLACE TAXPAYERS WILL THINK
ABOUT.
HOW CAN WE?
USED THESE NEW RULES AND ALL OF
THE IN A WAY THAT STILL WIEGEL
BUT WORKS HARD VANTAGE.
I.
IN BOOKING AT MY PERSONAL
SITUATION I ACTUALLY REALIZED
THAT.
BECAUSE I COULD PLAY GAMES WITH
MY TAROT CONTRIBUTIONS TO MY
BENEFIT ARM.
EXAMPLES. S. SUPPOSE YOU'VE GOT
A TAXPAYER THAT HAVE IS AFTER
TEN THOUSAND DOLLAR LIMIT FOR
STATE AND LOCAL TAX DEDUCTIONS
STILL HAS FIVE THOUSAND YEAR IN
MORTGAGE INTEREST. AND THEY'RE
MAKING ABOUT TEN THOUSAND
DOLLARS A YEAR IN CHARITABLE
CONTRIBUTIONS.
THAT ADDS UP TO TWENTY FIVE
THOUSAND COMPARE THE NEW
STANDARD DEDUCTION A TWENTY FOUR
THOUSAND.
THAT STILL ITEMIZING BUT BARELY
SO OVER TWO YEAR PERIOD THERE
TAKING FIFTY THOUSAND INDUCTION.
WHAT IF INSTEAD OF DOING THAT
THEY SKIPPED THEIR CHARITABLE
DEDUCTIONS THE DONATIONS EVERY
OTHER YEAR AND MAKE TWICE AS
MANY EVERY OTHER YEAR?
SO OVER THE TWO YEAR PERIOD
THEY'RE STILL HOLDING THE
CHARITIES HARMLESS.
BUT NOW. IN YEAR ONE THEY'VE GOT
FIFTEEN THOUSAND DOLLARS IN
DEDUCTIONS THEY'LL. PICK THE
TWENTY FOUR THOUSAND STANDARD
DEDUCTION IN YOUR TO THAT TAKE
TWENTY THOUSAND CHARITABLE ON
THEY'LL HAVE THIRTY FIVE
THOUSAND TO OVER THE TWO YEAR
PERIOD THEY'VE GOT NINE THOUSAND
DOLLAR ADDITIONAL DEDUCTION. AND
A SIGNIFICANT FEDERAL TAX
SAVINGS.
HOW MANY PEOPLE ARE GOING TO DO
THINGS LIKE THAT I DON'T KNOW
WHAT WE NEED TO SEE DATA TO
START LEARNING STUFF LIKE THAT?
AND THEN THE OTHER ONE THAT I
WANTED TO TOUCH ON BRIEFLY DUH
IT PARTICULARLY SINCE IT CAME UP
A LITTLE BIT EARLIER IN THIS
HEARING IS.
THERE ARE A WHOLE LOT OF THINGS
THAT WE DON'T KNOW ABOUT THESE
REPEAT REPATRIATION PROVISIONS
ON ON THE CORPORATE SIDE.
.
I CAN TELL YOU ALL OF THE THINGS
THAT WE ARE THINKING ABOUT AND
HOPEFULLY YOU'LL UNDERSTAND WHY
WERE.
PEOPLE WE DON'T BELIEVE WE CAN
PIN THEM DOWN PRECISELY.
THE FIRST THNG IS IT WITH THE
NEW FEDERAL LAW HAS SOME
PROVISIONS WHERE THERE ARE
DEEMED DIVIDENDS THAT SOME OF
THE MONEY IS INCLUDED IN TO
CALIFORNIA IT OF STAR IN THE
FEDERAL INCOME.
CALIFORNIANS NOT NECESSARILY
FOLLOW THAT WE'RE MORE
INTERESTED IN WHEN THE MONEY
REALLY IS REPATRIATED. WHICH MAY
OR MAY NOT BE AT THE SAME TIME.
SO EVEN IF WE KNOW. EVEN IF WE
SEE HOW MUCH THE FEDERAL
ESTIMATE IS FOR HOW MUCH MONEY
THEY'RE GONNA MAKE NOT ALL THAT
MONEY NECESSARILY FLOWS THROUGH.
THE SECOND ISSUE IS THERE ARE
SOME OF THESE AMOUNTS THAT
CALIFORNIA'S NOT GOING TO TAX.
WE ARE NOT.
IT DOESN'T AFFECT CALHOUN YOU
KNOW THERE'S AN ELECTION THAT.
GOD. COMPANIES CADILLAC FILE ON
A WORLDWIDE OR WATER'S EDGE
BASIS.
THIS THING REALLY SHOULDN'T
AFFECT WORLDWIDE FILERS SO YOU
NEED TO GO THROUGH AND FIGURE
OUT WHICH TAXPAYERS ARE FILING
ON WHICH BASIS. AND YOU HAVE TO
HOPE THAT TAXPAYERS AREN'T
SWITCHING.
WHAT WE SAW THIS BEFORE WHEN WE
WERE TRYING TO DO ESTIMATES ON
PROP THIRTY NINE?
ONE OF THE THINGS THAT THREW US
OFF WAS WE WANT WOMEN MISCAST
ABOUT A COUPLE OF TAXPAYERS TO
CHANGE THEIR ELECTION AT THE
TIME THE SALES FACTOR ELECTION
BECAME AVAILABLE.
AND THAT CAUSED AN ERROR IN OUR
ESTIMATES.
ANOTHER THING YOU NEED TO BE
AWARE OF IS THAT THERE ARE
DIVIDEND REDUCTION. PROVISIONS
IN CALIFORNIA LAW THAT EVEN ONE
EVEN IF IT IS MONEY BEING
REPATRIATED BY WATER'S EDGE
TAXPAYER DOESN'T ALL NECESSARILY
GO INTO TAXABLE INCOME. YOU ALSO
HAVE TO THINK THROUGH WHETHER
ANY OF THESE THINGS GOING ON
CHANGES THE TAXPAYERS
APPORTIONMENT FACTORS.
WHICH AS A SITE WHICH IS ANOTHER
WHOLE ISSUE THERE TO WHICH EVEN
IF WE KNEW FULL WELL HOW MUCH
EACH TAXPAYER.
MIGHT BRING BACK IT STILL
MATTERS WHETHER IT'S THE ONES
WITH THE HIGHER THE LOWER
PORTION OF FACTORS THAT ACTUALLY
BRING THE MONEY BACK.
AND AND THEN THE FINAL SAYING
THAT THE AYE THROUGHOUT THERE'S
THERE'S ALSO ANOTHER PROVISION
THAT WE HAVE.
THAT CERTAIN CONTROLLED FOREIGN
CORPORATIONS IN HIGH TAX
JURISDICTIONS.
CAN BE.
CARVED OUT A WATER SAID SHE.
WELL THAT DEFINITION OF HIGH
TECHS FOREIGN. JURISDICTION IT
TURNS OUT IS KEYED TOWARD THE
FEDERAL KEYED TO THE FEDERAL.
CORPORATE TAX RATE. SO WHEN THE
FEDERAL CORPORATE TAX RATE GOES
DOWN THE NUMBER OF FOREIGN
ENTITIES.
IN JURISDICTIONS THAT QUALIFY TO
BE FOR THE ELECTION NOT TO BE
INCLUDED IN THE WATER'S EDGE
GOES UP.
ANOTHER THING WE DON'T KNOW HOW
MANY OF THESE ENTITIES OUT THERE
OUT ARE OUT THERE HOW MANY OF
THEM WILL MAKE THIS ELECTION
ALTHOUGH WE CAN ASSUME THAT IF
THEY DO MAKE ELECTION WILL
PROBABLY REDUCE CALIFORNIA
REVENUES.
AND THEN THE FINAL THING ON THE
BACK AND IS EVEN A LOT OF THIS
REVIEW MONEY THAT WE DO GET FROM
REPATRIATION.
SO I AT LEAST A PORTION OF IT
WILL BE A TIMING ISSUE WILL BE A
REDUCTION IN FUTURE REVENUES
FROM WHATEVER IT WOULD HAVE BEEN
REPATRIATED.
SO THAT'S THAT'S SORT OF AN
OVERVIEW OF THE SITE OF SOME OF
THE ISSUES THAT WE'RE WRESTLING
WITH.
VERY SIMPLE SUBJECT.
MOM I KNOW APPRECIATE IT REALLY
QUICK AYE I JUST WANNA DO A TIME
CHECK AS WE ABOUT FIFTEEN
MINUTES THAT MISTER MOORE
LOOKING TO SEE IF YOU HAVE ANY
QUESTIONS. HIGH REGARD THE
PERCENTAGE IT'S TIME.
HE.
.
ITS THE NONCONFORMITY AREA FROM
HIM AMAZING.
.
OKAY.
THE CHALLENGES.
OCTOBER TRAILER YEAH YEAH. BUT
I.
CAN'T GET SO YOU KNOW HOW MANY
OTHER BILLS WE HAVE TWO TWO
SEVEN THIS MORNING.
HOW MANY OTHER BILLS OF THIS
NATURE DO YOU?
DO WE HAVE.
NOT SURE I KNOW THAT THERE'S A
LOT OF DISCUSSION.
FROM MANY MEMBERS ABOUT.
MAKING SURE THAT CALIFORNIA'S
KEPT TOLL IF HE WILL I'M
PARAPHRASING RIGHT BUT.
THERE COULD BE A HALF DOZEN
POTENTIALLY MOVE IN THIS YEAR OR
MORE.
SO. I THE YOU KNOW THEY'RE JUST
A COUPLE OF APROACHES OF OVER
ONE IS TO GET ALL HEATED IN TWO.
TWO SEVEN GATHERS TO ROLL WITH
IT UNTIL KID HOW DO WE. KNOW IT
THESE HAPPEN EVERY TWENTY THIRTY
YEARS AND HOW DO WE JUST.
YOU TO MODIFY TO MAKE SURE THAT
AT THE END OF THE DAY WERE STILL
REACHING OUR. INCOME GOALS AND
AND NO ONE IS BEING HARMED.
YOU KNOW I I IT. I GUESS IN
EQUITABLY.
SO ONE OF THE QUESTIONS I ASKED
THIS MORNING NOT TWO TWO SEVEN
WAS OKAYED AFTER GOING TO ALLOW
FOR CHARITABLE DEDUCTION ON THE
FEATHER RETURN THEN BY GOLLY IT
SHOULD BE A TERRIBLE DEDUCTION
ON YOUR STATE RETURN SO YOU
START DOING THAT CALCULATION.
YOU'RE YOU'RE GONNA FIND A AYE
AYE DECREASING REVENUES I JUST.
DEPENDING ON HOW MANY OF OUR ONE
PRISONERS AND I USE THAT NUMBER.
BUT AS A.
POLITICAL STATEMENT BUT ONE
PERCENT PAY FIFTY PERCENT OF OUR
PERSONAL INCOME TAX.
AND IF THEY START MAKING THE
CONTRIBUTION DEDUCTION THEN IT
DOESN'T SHOW UP ON OUR.
FIVE FORTY SCHEDULE A BECAUSE
IT'S A CONTRIBUTION AND SO THAT
WOULD REDUCE TAXABLE INCOME
REDUCE.
TAXES COULD AFFECT PROP SIXTY
THREE SO YOU'D IN THAN THEY THEN
YOU GET A CREDIT REPORT IT'S
JUST LIKE ALL MY GOODNESS THAT'S
HOPING IS ALL OVER THE TAX
RETURN.
THAT'S WHY I HAVE DIFFICULTY
WITH THAT I JUST SEE IT IS
TWO GIMMICKY WITH.
BUT.
I KNOW IT'S AND SO YOU START
YOU'RE PROBABLY PAYING THE SAME
SCENARIOS IN YOUR BRAIN SCANNING
GONNA GET OUT ITS ASSAULT.
YOU KNOW COME OUT AT THE IN THE
DATE IT WOULD DO WE JUST BURN
OURSELVES.
AND ACTUALLY THE STATE LOSES
MORE THAN.
YEAH WHOEVER WE PACIFIED WHICH
YOU KNOW. HEDGE FUND OWNERS ARE
WE YOU KNOW TAKING CARE OF TO
KEEP THEIR TAXES THE SAME PLOT I
KNOW.
MORE DISCUSSION THAT FOR SURE
AND WHAT TO SEE.
OTHERS WHO WOULD LIKE TO BE TO
PRESENT SIR I KNOW YOU HAD TO
HAVE BEEN THE CLOSING COULD
COMMENT.
I I I CAN I CAN I CAN STOP HERE
IF YOU LIKE THINKING.
YOU KNOW I JUST REALLY GRATEFUL
FOR YOUR TIME AND.
HAVE THOROUGH AND.
UNDERSTAND WE A LOT OF A LOT
MORE TO COME THAT'S IT'S A
THAT'S THE ONE THING I WOULD
REALLY SAY JUST ENCOURAGE YOU
TO.
ENGAGE IN THE DIALOGUE WITH US
SO WE CAN FIGURE OUT THERE'S A
LOT OF WAYS TO PRESENT THE STATE
AND AND DAY EVEN
SOME OF THE STUFF PARA THIS
MORNING HELPS US UNDERSTAND.
WHAT WOULD BE MOST USEFUL TO
YOU?
THE ABSOLUTE YEAH IT DOES I'VE
BEEN TAKING NOTES AT HAVE SOME
POINTS HERE WHEN WE COME BACK
ENABLE FOR EXAMPLE I THINK THAT.
I WOULD LOVE THE MESSAGE DOWN
AND TALK WILL FURTHER ABOUT THAT
WHEN THERE'S A FORMAT IN.
AREAS THAT WOULD BE GREAT THANK
YOU SO MUCH.
THAT CONCLUDES OUR PRESENTATION.
WONDERFUL ON WHETHER ANY OTHER
ITEMS AYE INFORMALLY THAT YOU
WOULD LIKE TO BE ABLE TO ADD
THAT.
AYE GERMAN EITHER OF YOU HAVE
HEARD IN WOULD LIKE TO BE TO
CHIME IN ON.
YEAH. I DON'T I THAT I CAN'T
THINK OF ANYTHING ELSE I MEAN
YOU KNOW WE HAVE A WE HAVE A
GOOD PROCESS WE WILL BE
DEVELOPING.
ARE.
R. REPORT YOU KNOW WHICH WILL
BE FINAL IN APRIL BUTYOU KNOW
WILL WILL BE GETTING SOME IDEAS.
BUT AND THAT REPORT WILL%
RECOMMEND IT'LL SAY GO SECTION
BY SECTION AND SAY THIS CODE
SECTION APPLIES R. DOESN'T
APPLY.
THIS CODE SECTION IF YOU CAN
FORM THIS WILL BE THE RESULT IF
YOU DON'T CONFORM THIS'LL BE THE
RESULT. AND THAT IS A TOOL FOR
THE LEGISLATURE TO USE TO TO
MAKE A LOT OF THESE DECISIONS.
THE APRIL DATE.
A HARD DATE THAT YOU'RE YOU'RE
SUPPOSED TO MEET BY LEGISLATIVE
YES WE COULD. IF WE IF JOHN
WORKS
TWENTY FOUR HOURS A DAY.
WELL ADDED JOHN HERE WE GO
BITTER SENATOR MCGUIRE AND I DO
SO WHAT DO YOU GUYS CRYING ABOUT
TACKLING.
I.
IT ALSO USES ON THAT DATE I'M
JUST BECAUSE OF A IN ALSO
UNDERSTAND THE DATA CRUNCHING AS
A COMPLICATED IS IT WILL BE UP
FOR THE LEGISLATURE TO BE OF
RECOVERY AND. IT IS ABSOLUTELY
IT'S MORE COMPLICATED FOR YOU TO
BE IT WILL HAVE TO.
ANALYZE AND THEN. I PUT OUT THE
REPORT.
IS THAT A CONSERVATIVE DATE.
WOULD DO IF YOU JUST HONEST
GIVE US YOUR THOUGHTS ON THAT IF
YOU DON'T MIND.
YEAH I THINK I MEAN GIVEN THE
BREADTH OF THIS TAX REFORM THIS
BILL.
OVER FOUR HUNDRED PAGES.
.
I I THINK WE'RE DEFINITELY
LOOKING AT LAKE. LATER.
SO THIS IS A ONCE IN A CAREER
OPPORTUNITY SO SO YOU'RE NOT
DOING IT ALL BY HERSELF CORRECT.
NO I THINK I HAVE SMELLED. IT
PLEASE SO FAR I MEAN IT SEEMS
LIKE YOU SHOULD BE GETTING A
KIND TO RESOURCES WHETHER
INTERNS ARE THERE.
HE KNOW WE WERE WORKING ON
SOMEBODY'S GOTTA COMMITTEE GIVE
YOU HELP.
OKAY.
THANK YOU SO MUCH.
THURMOND YOU MIGHT EVEN HAVE YOU
MAY THAT'S RETIRED CPA'S THAT
WOULD MORE HAPPY THAT.
I'M I'M TRYING TO THINK OF THE
WORKLOAD BECAUSE I I DO I
APPRECIATED THAT TIME THROUGH
THIS DRILL.
BUT YOU KNOW WHAT WILL PROBABLY
HAVE A SIMPLIFIED LIST AS WELL I
MEAN YOU KNOW THAT THE BIG.
REPORT IS HUGE AND HAS EVERY
SECTION.
BUT THERE ARE SOME THAT PEOPLE
ARE ARE CALLING OUT ALREADY IN
THE PRESS
AND EVERYTHING THAT. YOU KNOW
IDEALLY WILL WILL BE ABLE TO
FOCUS ON EARLIER.
NOMINALISM TO A DELOITTE RETIRED
PARTNER NICK AND I GOT FRIDAY
COMING UP WILL ASSUME IN
FEBRUARY. BUT HE WE HAVE ALREADY
EMAILED AND AND AND HE'S GONE
THOUGHT MY GOODNESS OF WHAT I
JUST FOUND IN THESE FOUR HUNDRED
PAGES LIKE A LOOK. DID YOU KNOW
THIS WAS IN HERE AND AND. AND SO
IT'S GOING TO BE CHRIS PITCHERS
THING.
DO YOU KNOW REVELATION ONCE WE
FIND OUT EVERYTHING IN THEIR
ABSOLUTELY. I THINK A GOOD LUCK
PLEASE ONE LAST BUT I'D JUST
LIKE THAT PADDED JUST REMEMBERED
THAT THE OTHER PROBLEM IS THE
TREMENDOUS HETEROGENEOUS ENGINE
EIGHTY THERE ARE GOING O BE.
WINNERS AND LOSERS.
AND DIFFERENT TAXPAYERS IN
DIFFERENT CIRCUMSTANCES IT'S
GONNA BE ALL OVER THE BOARD IT'S
REALLY GONNA BE HARD.
I'M.
I MEAN EVEN YOU KNOW JUST
FOLLOWING UP ON SOME OF THE
DISCUSSION FROM EARLIER THIS
MORNING WE'VE TRIED TAKING A
LITTLE BIT OF A LOOK.
I. EVEN IF YOU JUST LOOK AT A
PIECE SO IF IT GETS REALLY
COMPLICATED REALLY QUICKLY.
CLICK FOR ME THAT PACKARD MISTER
CHAIR THE. THE BIGGEST TIME SUCK
FOR ME DOING MY TAX RETURN IT'S
GIVING ALL THE MILEAGE AND ALL
THE LITTLE DETAILS THAT YOU'RE
GONNA REMOVE MISCELLANEOUS
DEDUCTIONS.
YOU JUST SAVED ME.
SEVERAL WEEKENDS.
SO THAT THAT PART OF THE BILL IS
GOING TO GO ON YEAH I DON'T GT
THE DIRECTION BEFORE THAT ALL
THE TIME I GET TO THEM.
YOU WANT TO BE PRECISE.
AT THE CPA TO THE DAY YOU GET
AUDITED YOU WANTED TO HAVE
RECRUITING ALL DOCUMENTED. AND
SO IT'S VOTE SO THERE'S A LOT OF
THINGS IN THERE THAT.
MAY COST ME BUT BUT MAY NOT.
MY A OUT ONE LAST QUESTION WOULD
BE. HOW MUCH CONDITION WE HAVE
IT WITH OTHER STATES THAT ARE IN
SIMILAR CIRCUMSTANCES?
CALIFORNIA CONNECTICUT NEW
JERSEY UP.
YORK EXEC DRESSED ILLINOIS PALE
ILLINOIS SO WHAT WHERE WE AT. A
IN REGARDS TO THOSE
CONVERSATIONS IN COLLABORATION
ON THAT.
UNDERSTANDING THAT EVERY STATE
TAX CODE IS DIFFERENT RIGHT AB
HA BUT BUT THAT ARE THERE ANY
ISSUES THAT.
THERE COULD BE SOME POTENTIAL
COLLABORATION ON. THAT WE HAVE
BEEN CONTACTED BY OTHER STATES
ON SPECIFIC ISSUES NOT IN
GENERAL FIBERS
I THINK CAUSED AGAINST IT BY
STATE IS DIFFERENT DISTANT NO
THERE ANY. SWEEPING ITEMS OF THE
ONE OF THE LARGER ITEMS IF THERE
ARE ANY OTHER STATES IN SIMILAR
CIRCUMSTANCES THAT. WE CAN
EITHER. WORK WITH OR STEAL FROM.
IT'S A GREAT IDEA TO DO YOU HAVE
A.
AND ASSOCIATION I ASSUME.
TAXI TAXING STATE TAXING
AGENCIES YES WEEK THERE ARE A
COUPLE OF AGENCIES AND WE
SUBSCRIBE TO ALL OF THEIR EMAILS
AND EVERYTHING AND SO WHERE WE
KEEP IN TOUCH WITH THEM AND. YOU
KNOW IT JUST SEEMS LIKE THEY
ALWAYS ASK US MORE QUESTIONS
THAN WE ASKED THEM BUT THAT'S
THE WAY IT ALWAYS WORKS OUT BUT
DO YOU HAVE LIKE A A BEST
PRACTICES LIKE WHAT'S THAT WHAT
STATE HAS. HAS COME UP WITH THE
BEST FORMULA ON INCOME TAX.
EH THERE'S THERE'S NOTHING THE
AT FROM THIS GROUP OF THE STATE
COLLECTIVES I THINK HE'S THEIR
ORGANIZATIONS LIKE YOU THE TRY
TO PUT OUT REPORTS ON STUFF LIKE
THAT.
OKAY.
ALRIGHT ANYTHING ELSE AT ALL
THANK YOU VERY MUCH MISTER
CHAIR.
I THINK YOU SO. AGAIN WHEN A
TALK ABOUT NEXT STEPS AND WOULD
LIKE TO LOOK TO GAIN FOR
INCLUDING COMMENTS AS WELL.
SO FOR THIS COMMITTEE'S NEXT
STEP SO WE'D LIKE TO GET A SIT
DOWN AND HAVE A CONTINUE
DIALOGUEWITH. AT THE FIND
NUMBERS HERE THE STAFF FROM FTP.
I'M IN AGAIN WANT TO SINCERELY
SAY THANK YOU FOR YOUR FANTASTIC
WORK. YOU KNOW THAT THERE WERE
SOME INITIAL HESITANCE ABOUT.
COMING TOGETHER SO EARLY AND I
REALLY APPRECIATE YOU STEPPING
OUT TO BE TO DO THAT.
ON AND PROVIDE AN OVERVIEW DAY
IF WE GET THOSE POINTS DISSOLUTE
WE CAN BE SURE TO THE COMMUNITY
THAT WE CAN BE AT COMMITTEE THAT
WOULD BE GREAT.
.
WE WOULD LIKE TO BE ABLE TO HAVE
A SECOND HEARING IN APRIL. BUT
ONCE YOU'RE ABLE TO PUBLISH.
AYE SOME IDEAS IN REGARD TO ADD
THE PRESENTATION
AND BEEN IN WOULD LIKE TO ADD A
HAVE THAT AS A STAND ALONE
COMMITTEE HEARING. WHICH MAY
MEAN THAT WE DO IT ARE NOT ON
OUR TRADITIONAL WEDNESDAY
DISAPPEAR TO GIVE IT THE TIME
THAT I THINK IT'S GOING TO
SERVE.
I THINK THE OTHER ITEM THAT TIME
PHONE UPON THIS MORE LOCK.
AND WE'RE GONNA HAVE TO CAN YOU
HAVE SOME CONVERSATION WITH ARE
SIMPLY COUNTERPARTS AS WELL. ON
HAS DIED THIS IS GONNA BE A
MASSIVE ISSUE AND VERY
COMPLICATED IN AGAIN A LOT. OF
FOLKS ARE GONNA BE GRUMPY I'M ON
ALL SIDES
SO THAT'S GOING TO BE TOUGH TO
BE ABLE TO RECONCILE.
AND AS I WITH INDIVIDUAL TO MY
LEFT IS ONE OF THE BEST AND HE
HAS SAID THIS IS THAT I WILL NOT
USE THE EXPLETIVE THAT THE.
USED WHAT THE FIRST THE SECOND
WERE TO SHOW SO.
NAY AND ADD JUST BECAUSE HOW
COMPLICATED IT USUALLY IS REALLY
OF TRYING TO BE ABLE TO GET
THROUGH. ON THIS WITH SO MANY
DIFFERENT OPINIONS AND CANDIDLY
AGENDAS RIGHT. SO WE LOOK FOR TO
WORKING WITH YOU OUT HERE IN THE
COMING WEEKS AND MONTHS SAYING
WOULD LIKE TO RETURN OVER JI FOR
ANY CLOSING COMMENTS.
AND I DON'T HAVE ANY CLOSING
COMMENTS MORE HIDING. RIGHT I
REALLY APPRECIATE AGAIN OF THE
FOUR OF YOU COMING FORWARD TO
BEING TO GIVE US THIS AT INITIAL
PREVIEW THANK YOU SO MUCH. OUT
WE'RE GOING TO BE AT ADJOURNING
HERE AND AGAIN TOMORROW SAME
ROOM ONE TWELVE.
CREEK OUT WILL HAVE THE GHOST
APPEARING WHICH WILL BE FOLLOW
UP I DO WANT TO THINK YOU DO WHO
ARE CALLING. A GOOD NOW AGAIN
WHO'S JUST SO GOOD. ON A
BRINGING THIS TOGETHER AS WELL
AT THE LAST HOUSEKEEPING ITEM I
WILL HAVE. AND WOULD LIKE DE
ADMITTED CITIZEN BEGIN HEARING
WHAT WE'RE LOOKING AT TAKEN AT
THE COMMITTEE ON THE ROAD HERE
COMING UP IN MARCH.
I MARCH FIRST
AND AT U. KAYAK CONVENTION
CENTER IT'S GOING TO BE AN ISSUE
RELATED TO CENTER MORLOCKS
FAVORITE SUBJECT OF CANNABIS.
WE ARE.
HAGEN TO BE ONE HUNDRED DAYS.
INTO PROP SIXTY FOUR WOULD HAVE
A COMPREHENSIVE.
FIRST HUNDRED DAYS A PROP SIXTY
FOUR HEARING. AB CHECKING INTO
WHERE WE'RE AT WITH TAXES AND
SOFTWARE.
IMPLEMENTATION OF ALL ISSUES OF
PROP SIXTY FOUR TO THAT'S MARCH
FIRST IN THE EVENING THAT'S A
THURSDAY. I WILL BE SENDING TO
SAVE THE DAY OUT DATE OUT TO ALL
COMMITTEE MEMBERS.
AND IF WE TAKE A LOOK AT A DRIVE
ITS BATTERED THREE THREE AND
HALF HOUR DRIVE FROM SACRAMENTO
WITH I KNOW AIR SERVICE SO I'M
SOONER.
AND I NEVER GET TO SIMMER LOCKER
LOW NEW OR BILL FLOWN UP THE
MINI VAN AND DRIVE NEVER
TOGETHER MY RIGHT.
STOP RIGHT THERE YEAH I DAY.
WE GET TIMES.
BUT.
SO DISORDERLY SHOULD THAT IS ON
THE COUNTER AS WELL MARCH FIRST
IN THE EVENING.
AS WELL SO AGAIN THANK YOU SO
MUCH WE'RE GONNA ADJOURNED AT
THIS HEARING IN TO FTP THANK YOU
VERY MUCH.
THANK YOU