Advertisement
YOU ARE HERE: LAT HomeCollectionsCalifornia

Tax loophole saved at expense of poor

GEORGE SKELTON | CAPITOL JOURNAL

February 18, 2008|GEORGE SKELTON

SACRAMENTO — When you've got Republicans who won't even close a tax loophole for yacht buyers, there isn't much hope of honestly solving California's budget mess.

How can anyone take seriously lawmakers who insist on protecting a "sloophole," as Assembly Speaker Fabian Nunez calls it? Why should anyone regard them as anything but rigid ideologues, unwilling to compromise even as the state tumbles toward bankruptcy?


Advertisement

Shamefully, the longest, most intense debates in each legislative house over a $7-billion deficit-reduction package Friday concerned whether to continue allowing purchasers of yachts, RVs and airplanes to avoid the California sales and use tax. They do that by taking delivery out of state and parking the toy there for 90 days. The bill that Republicans blocked in the Assembly would have required the plaything to be stashed outside California for at least a year.

Oregon doesn't impose a sales tax, but offers temporary moorings that are popular with rich California boat buyers.

There was a more logical debate in both houses over whether to cut the already miserly medical provider fees for treating poor patients who are covered by Medi-Cal, California's version of Medicaid. This state right now has the lowest Medicaid reimbursement rates in the nation. And the Legislature voted to slash them 10% starting July 1.

Lawmakers of both parties winced.

Republican Assemblyman Rick Keene of Chico called it "a bad move," warning that rural hospitals, patient transportation firms and pharmacies "will be going out of business," denying poor people access to care.

"Thank you for your Democratic speech," Nunez told him.

In the Senate, Republican Sam Aanestad of Grass Valley -- a dentist -- said he already had stopped serving Medi-Cal patients because of low rates. Under the new cost-cutting, he said, "there'll be hundreds of doctors dropping out of the program. I predict it's going to lead to the demise of the Medi-Cal program as we know it."

Aanestad added: "It's also an unfair action. We're not reducing salaries of teachers or prison guards or highway patrolmen. But this is easy, because these [providers] don't have a [union] contract."

Democratic Sen. Sheila Kuehl of Santa Monica responded that when Republicans won't consider raising taxes, they can't be too picky about what spending to cut.

A few Republicans also objected to postponing the appointment of new judges in their districts.

Los Angeles Times Articles
|