Yes on Proposition S
Endorsements 2008: Keep L.A.'s communications tax.
It's one of the more vexing aspects of California politics: The political powers that be come up with a smart reform or revenue measure that will improve the operation of the state (or city or county). But they don't trust the public to make the right decision based on the facts and instead dress up their pitch with half-truths. That's the case with Proposition S, a prudent measure that would protect Los Angeles' 40-year-old telephone tax while simultaneously reducing it and applying it more fairly to new technologies.
It's tempting to punish politicians for their stealth in marketing Proposition S. But by rejecting the measure, voters would simply be punishing themselves by de-funding their government services. The measure itself is sound. Ignore the pitch and zero in on the substance: The Times strongly recommends a yes vote on Proposition S.
Here's the short version: Los Angeles currently levies a 10% tax on phone calls and other communications -- like telegrams -- under laws dating back to the old days, when there was one telephone company that everyone thought would be around forever. But when cellphones became widespread, the law had to be amended to make clear that the tax applied to them too. Recent lawsuits call those amendments into question, so to make sure they still apply, the matter must be put before voters. Proposition S includes two major changes: It applies the tax to any mechanism people use to call one another, so the law won't have to be amended again when the next communication technology comes along to replace cellphones. And it reduces the tax from 10% to 9%.
Why a reduction? The mayor and City Council were looking for an angle. They want to convince you that Proposition S lowers your tax.
But there is more to the story. A challenge is moving through the courts, and without Proposition S the whole tax eventually could be thrown out. That would mean a loss of $270 million a year in much-needed revenue. That's why Police Chief William J. Bratton is warning, in campaign commercials, that we need Proposition S to protect police, fire and paramedic services.
Don't believe opponents who claim that Proposition S would extend the phone tax to Internet access services. Federal law prohibits such a move, and even if federal law changes, the Los Angeles tax could not apply to the Internet without another vote of the people.
