Warning: You’re working even longer for the government this year!

By Craig Huey

You may have heard that last week marked Tax Freedom Day. It’s the day the average Californian stops handing over his or her hard-earned money to federal, state and local governments and starts keeping it for themselves.

This year California Tax Freedom Day arrived on May 7, 2007—two days later than last year. That adds up to 126 days of the government spending your money, instead of you. Just 4 years ago, California Tax Freedom Day came to citizens 15 days earlier on April 22.

In fact, California ranked the seventh highest-taxed state in the nation. Last year, California was ranked two positions better. It’s getting worse for California.

It's no wonder entrepreneurs, businesses and over-taxed Californians are simply fed up and fleeing to nearby tax-friendly states like Arizona, Nevada and Oregon.

This year, the government will take 32.7% of the nation’s income. You spend more days working just for the government (126 days) than you do for food, clothing and housing combined (105 days).

How did we get into this tax crisis? The problem is with the federal, state and local governments. In 2003, President Bush's tax cuts gave the economy a robust jump, and it’s been booming ever since. But there is a dark side to this. As incomes have risen, families have been pushed into higher tax brackets of 25%, 28% and up to 33%.

The story gets worse. This year, the Alternative Minimum Tax, or AMT, will be adding even more taxpayers to its ranks. In 2001, 1.3 million households had to pay the AMT. For the 2007 tax year, it’s estimated that 23.7 million taxpayers will be forced to pay the AMT. It’s a financial sinkhole for millions of average Americans.

Worse, expect taxes to climb. The liberals in Congress are refusing to extend President Bush’s tax cuts. And indeed, pushing higher taxes.

Overspending in California is so out of control that Sacramento cannot even come close to overcoming the massive $6.5 billion deficit. And voters seem to have joined politicians in chasing entrepreneurs out of the state.

Propositions 1B–1E passed last November created billions in new bonds. What most voters don’t realize is that with bonds, costs are always double. That’s because tax money also goes to interest, lawyer fees and bankers.

The state budget is rife with out-of-control spending, waste and pork. And liberal social-engineering programs are creating even more bureaucracies like banning fluorescent lights, banning spanking and changing history textbooks to include plentiful references to famous homosexuals.

In fact, South Bay representation is so bad that the National Taxpayer Union, a foundation dedicated to rating senators and representatives on their tax record, has given South Bay Assemblymembers Betty Karnette, Ted Liu and Alan Lowenthal some of the lowest ratings in the state on taxation issues.

City and county school board spending is also out of control. Somehow, despite historic revenue, there is always a financial crisis.

Money is earmarked for politician pet projects and then a “crisis” magically occurs because there is none left over for essential services like police and fire departments.

Or there is just simply waste. The Los Angeles County Metropolitan Transit Authority alone reports it may show a deficit of $1.8 billion over the next 10 years. Los Angeles Mayor Antonio Villaraigosa even earmarked thousands of taxpayer dollars for a feng shui consultant—for an L.A. Zoo monkey cage!

And let's not forget the hidden taxes you may not even know you are paying, like the utility users tax, license tax, Federal Communications Commission, sewer, cable, electricity, property and trash.

Tax proponents are usually well organized and funded, with large contributions coming from special interest groups. And tax supporters often scare voters about the perceived need. Or they downplay the increase in taxes—“ it’s only a few cents a day.” The result is that temporary taxes become permanent tax burdens (like in Palos Verdes Estates).

According to the chief economist of the State Board of Equalization, just a half-cent increase in the sales tax would reduce taxable sales by $2 billion, cut 24,000 jobs and cut business investment by about $273 million. Each half-cent increase reduces household consumption by $1.3 million.

Thus, the unintended consequences are devastating. But the opposite is true: Reduce taxes and watch the economy grow.

But there are 2 things you can do to help:

1. Always vote "No" on bonds. Let the money come out of current revenues by cutting unnecessary waste and less desirable programs. And let the private sector raise funds voluntarily for worthy projects.

2. Vote against any elected politician who is not a taxpayer's friend. If the spend-happy politicians continue to be reelected, you can expect to work an extra few days next year to pay the growing tax burden.

If voters would demand spending cuts and oppose tax increases from all levels of government, we could work fewer days for the government next year, allowing us to keep more of the money we earn.