Dec 20 2008
The Difference Between A Tax And A Fee In California
The whole sham that is the democrats majority vote plan rests upon on thing: the difference between a tax and a fee in California law (for more on the difference between a tax and a fee in California law click on this link).
Here’s the main differences - there are only two.
A tax is something put on money in order to raise revenues. A tax also does not have a “sufficient” nexus to the services provided to the tax payers.
A fee is meant to cover the costs of a program, and not mearly raise revenue levels. Additionally, a fee must have a “sufficient” nexus between the fee payer and the services being provided. The definition of “sufficient” is not clear, and it is mainly a legal term. My thoughts on the matter are if you can link the money directly from the payee to the services, then you have a fee. And example of a fee is how the fee for a fishing license goes to the Department of Fish and Game in order to run hatcheries (so there are fish to fish), and pay wardens (to keep fishers safe). If you don’t fish, you don’t need these services. Therefore, there is a link between the payee (fishers) and services (being provided by a state department). The fee is also meant to cover the costs of the program, not simply bring in new funds.
Now, is the Democrat’s proposal really going to pass this test?
The gas tax is called a tax in one bill, and a fee in a second. There is an income “surcharge” that the Dems are trying to pass off as a fee. I don’t know about you, but you cannot make a sufficient nexus between an income surcharge and the services I recieve from the state. And I would be the first one to stand up in court to point that out.
This plan would still have to be signed by the Governor (it is a bill), and he has indicated that he won’t sign it without major reforms. Additionally, the plan wouldn’t go into effect until it cleared all the legal hurdles thrown at it. What legal hurdles? The lawsuits from all the advocacy groups. These groups are already lining up their briefs on the matter and are simply waiting to see if the set of bills that comprises this trick will be passed and signed into law.
I am not against creative solutions. I am against bogus solutions. So fix the stinking problem already - I hate seeing the legislators get paid for doing nothing but putting together plans that look good for press conferences. The Dems know this won’t work, so stop spending time on it and spend time on real negotiations and real solutions.
