What to Expect From Real Estate In 2021For real estate, as for many things, 2020 was a strange year. Despite a pandemic, a recession and unemployment that at one time hit 20 million, 6 million
Jul 5 2018 38376 1
Dated: July 5 2018
How Would Gavin Newsom Pay for His Promises?
What would happen if Californians elect Gavin Newsom as our next governor?
Newsom is to face a token republican foe, San Diego businessman John Cox. On election night, Newsom declared the left-of-center agenda he would pursue as governor, to wit: “Guaranteed health care for all. A Marshall Plan for affordable housing. A master plan for aging with dignity. A middle-class workforce strategy. A cradle-to-college promise for the next generation. An all hands approach to end child poverty.”
Promising to be “audacious” and “bold”, Newsom declared ,”No family should ever lack a roof over their heads. No child should ever be raised below the poverty line. No patient should ever be denied access to basic health care. And no Californian should ever have to choose between the three.” By coincidence, just two days later, outgoing Jerry Brown and legislative leaders announced agreement on Brown’s 16th and final state budget, which will take effect on July 1 which mirrored the Newsome agenda and would spend billions more dollars on a wide variety of social services.
Even assuming that California avoids a long-overdue economic downturn, where would Newsom get the immense sums of money that he’d need to deliver his agenda? Just providing “guaranteed health care for all” would cost at least $100 billion more in taxes and that assumes that the federal government, which now pays half of Californians $400 billion a year tab for health care, would shift that money into a new state program. How about the “cradle to college” promise that would cost untold billions more! Californians already have one of the nation’s highest state and local tax burdens as a percentage of their personal incomes, coughing up more than $300 billion a year. We have the nation’s highest income and sales tax bites and despite the Proposition 13 limits, hefty property taxes. Our tax burden could increase by 50 percent. As Californians and citizens of this fine State, we owe it to ourselves and one another to think of the future of our kids and grandkids and choose a leader that avoids the tax and spend agenda.