Letters: State budget, gambling, transportation, downtown, etc.

Re "State tax hike talk must be linked to budget reform," commentary, April 22: Loren Kaye, president of a "nonpartisan" think tank affiliated with CalChamber, says that more than merely raising taxes is needed. His "reforms" would stop "reckless behavior" – by slashing and burning the middle class and poor. He would cap guaranteed benefit programs, re-open union contracts and attack wages, and "at long last control employee health care and retirement obligations." Not control health care itself, of course.

Kaye would not tax the rich. So he would not: tax oil drilling (only California doesn't), make the income tax more progressive by adding higher tax brackets at $400,000 and $800,000 levels at 10 and 11 percent, respectively (from 9 percent), tax large corporate commercial property at market, and restore the vehicle license fee to 2 percent. That would be three quarters of the deficit taken care of right there.

What is he really afraid of? He likens the current problem to the recent subprime debacle and wants to make sure nothing like the "onerous accountability and oversight" by government occurs. Well, it is precisely the withdrawal of the accountability and oversight, and the greed run amuck, that robbed so many people of their homes and future. By the way, government in a democracy is the people, not just the rich.

- Jeffrey Narten, Davis

Beware of knee-jerk funding

Loren Kaye's commentary ("State tax hike talk must be linked to budget reform," April 22) on how to approach the state's budget crisis is right on. He succinctly points out how legislators got us into this mess, but more importantly, has a terse message on how the governor and Legislature should solve the budget crisis.

For instance, setting priorities – instead of assuming they have to continue funding all programs and providing automatic increases every year – would be a good start. And, what about some real reforms in education, health care and labor bargaining?

Legislators need to understand that we are not going to continue to enable their sorry conduct and bail them out year after year. Maybe it's time for a Boston Tea Party.

Furthermore, should it become absolutely necessary for the Legislature to increase our taxes to balance next year's budget, this act should be considered a temporary measure. Taxpayers should be reimbursed for having to bail out the Legislature. The economy will improve in the future and state revenues will increase, but don't hold your breath for a refund. Tea, anyone?

- Paul Carrillo, Elk Grove

California, the new Atlantic City?

Re "Privatizing state lottery gets new look," April 22: So the guv and selected lawmakers are looking at solving a systemic and structural budget problem by trusting its resolution to a combination of addicted gamblers and/or mathematically challenged seekers of instant gratification who haven't figured out that, in the long run, the house always wins.

If the guv and his buds are successful, they may eventually turn this state into a West Coast copy of Atlantic City, and we all know how well dependence on gambling (oh, excuse me – the gaming industry) has worked for that community.

That might also explain why the guv just bought 25 acres "in an exclusive costal enclave in Santa Barbara County" for $4.7 mil ("Governor buys 25 acres," State Digest, April 22). If I had that large a hand in attempting to trash this state's financial structure and cultural milieu, I'd want to get out of town, too.

- Ralph H. Petri, Auburn

The case for the flat tax

In the April 17 editorial "Taxes done and mailed; let's consider reforms," The Bee says: "An ideal tax system would be flat overall, with progressive income taxes offsetting regressive property, sales and excise taxes. That way, each income group would pay a similar share of income in taxes."

Why go through this elaborate Rube Goldberg scheme to get to a flat tax burden? California should eliminate property, sales and excise taxes and simply tax everyone's income at a single flat tax rate. Most people pay sales and property taxes out of current income anyway, so let's just tax income at a single rate.