Thirteen years ago, the California Chamber of Commerce and other big business organizations cut a deal with Governor Jerry Brown not to oppose a 30 percent temporary tax increase on individuals. Since then the state’s General Fund has extracted an extra $95 billion from individual taxpayers, including small businesses that pay business taxes at individual rates, and annual General Fund Expenditures have increased 165 percent. While residents and students are hard pressed to point to any improvements in public services from the tax increase, public employee unions have enjoyed hefty increases in jobs and wages.
The tax increase expires in 2030, and the public employee unions that have reaped the principal benefits are already working to renew it, perhaps as early as 2026 via a ballot measure. This time, business organizations must not sell out individual taxpayers. Some of you are affiliated with companies that participate in business organizations so we ask that you make sure your companies get this message and communicate with us before making any deals.
Along the same line, we will require every candidate for governor in 2026 who seeks GFC’s endorsement to oppose renewal of the tax increase or to propose reforms that could justify an increase. A reform I would support is elimination of collective bargaining for public employees, which is at the root of the decline in California’s public services, but other serious reforms that could boost the productivity of public employees in California might suffice. California’s ship of state continues rudderless as our current governor focuses on distracting audiences with shiny baubles. Our next governor must chase results, not clicks.
