Much of the discussion around the proposed deal to remove an initiative requiring a two-thirds vote on all local taxes centers on the motives of the soda industry to avoid taxes on soda but there is another side to that coin that has received little attention. Local governments and unions opposed to the initiative want the leeway to raise taxes to deal with pension obligations that are eating away at local services.
One of the leading opponents of the initiative, SEIU, issued a release claiming the “temporary pause on further local soda taxes gives California the opportunity to work on a statewide approach to the public health crisis of diabetes.” Everyone would like to see a reduction in diabetes but if you believe the union has this issue as a top agenda item I have that bridge to sell you. Opposition from the unions stems from a pension crisis.
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