Navigation

For decades, property tax revolts have been a thorn in the side of progressives.  California's Proposition 13 remains the highest profile example of the property tax revolt, but just about every legislator in the country can attest to the level of frustration many Americans feel about property taxes. 

  • Progressives can begin to challenge property tax caps by simply presenting research showing the regressive nature of property tax caps in a compelling way. 
  • They also need to fight the rightwing promoting one of the most disastrous tax policies in recent decades, namely variations on Colorado'sso-called Taxpayer Bill Of Rights (TABOR) which created a rigid cap on increases in state spending tied to inflation and economic growth, decimating the state's investments in education, health care, and social services.
  • One other dangerous form of tax limitation laws are rules that require supermajorities to pass any tax increase.  In such cases,  special interests may be able to enact a tax break for themselves with a simple majority, but then can often block repeal of the tax loophole as a "tax increase" that can be blocked by a minority of legislators  

From the Dispatch

  • Dispatch image

    Tax Limitation Rules Costing States Big Bucks in Downgraded Bond Ratings

    Aug 05, 2010

    When state governments make it nearly impossible to raise taxes to pay their bills, their creditors apparently get very nervous and increase their costs to borrow money. Both Arizona and California have seen their bond ratings downgraded -- and their borrowing costs likely increasing -- with analysts citing both states' tax limitation rules that require a two-thirds vote of their legislatures to raise taxes as one reason.
  • Dispatch image

    Debating Federalism: Conservative False History and Hypocrisy vs. Progressive Collaborative Federalism

    Jun 15, 2010

    The challenge for progressives from this “states rights” movement is not that any of these laws are likely to survive in court, but that conservatives too often get away with claiming to stand for constitutional values without significant challenge from progressives.  The reality is that the right wing has no credibility in promoting their states’ rights arguments and should be challenged more directly.  As this Dispatch will outline, their arguments fail on multiple grounds.

  • Dispatch image

    State Revenue Increases Across the Nation Continue to Ease Pain of Downturn

    May 24, 2010

    As this Dispatch will detail, these votes mirror actions taking place in both conservative and progressive states and localities around the country.  In 2009 and 2010, states have enacted a wide-ranging set of revenue increases to cope with cumulative 2010 and 2011 deficits of approximately $375 billion.  Although revenue forecasts are improving, states are still reeling from historic declines in the past year.

    What is remarkable is that the anti-tax movement has wracked up such regular failures in the crisis, as even many state leaders previously signing "no taxes" pledges have reneged on them.   Instead, popular demand for new revenue to avert budget cuts has driven legislative movement on progressive tax and budget policy.

    Adding to the general public support has been research consistently showing that progressive revenue increases during a downturn is a better alternative to cuts in order to promote growth and protect vulnerable populations suffering during the recession.

    Finally, this Dispatch will outline some of the effective messaging and research to demonstrate to voters that progressive measures and tax increases are economically sound and go to the programs they want preserved -- the critical step in the success of revenue campaigns.

  • Dispatch image

    Eye on the Right: Adding Anti-Gay Provision to Wasteful Film Tax Credits in Florida

    Mar 11, 2010

    PSN has noted in previous Dispatches, these credits are costly, favor out-of-state workers, offer minimal to no returns, do not create permanent jobs, and place an excessive burden on taxpayers in a time of economic uncertainty.  The Massachusetts Department of Revenue recently determined that in twelve states that administer a film tax credit, the return is extremely meager-- finding that states were only getting back "$.0.07 to $.0.28 per dollar of tax credit granted."