--- [ LOS ANGELES ](https://mail.citywatchla.com/index.php?option=com_content&view=category&id=312) # Another Bad Idea: A Local Income Tax! TAXED TO DEATH--Members of the Los Angeles County Board of Supervisors have suggested an income tax on millionaires dedicating the money for homelessness relief. Opening the door for local governments to impose income taxes would erode the state’s major fund raising mechanism, burden taxpayers with more paperwork, hit small businesses whose owners pay business taxes through personal income taxes, and subject more government revenue to a highly volatile revenue source. All in all -- a bad idea Last week, when Gov. Jerry Brown vetoed the bill that would have permitted local governments to levy cigarette taxes, he complained that there already are too many taxes on the coming ballot. A push for an income tax would increase the volume of tax measures facing voters. Yesterday, the LA Board of Supervisors put off for one week a motion to ask county lobbyists to try and convince legislators to change the law that prohibits local jurisdictions from imposing an income tax. Still, Pandora’s Box on local income taxes has been cracked open. If the movement persists, the consequences can be great. The proposal to levy local income taxes comes at a time that a statewide effort to extend the Proposition 30 state income tax levies is on-going. California’s top income tax payers already pay the highest income tax rate in the country. LA County wants to pile on. The LA County supervisors think they have a winning proposal. The press release announcing the effort said a poll showed 76% support. Advocates of the idea will point to [14 states](http://taxes.about.com/od/statetaxes/a/City-Income-Taxes.htm) that give permission for some local governments to raise income taxes. Of course, it’s always easy for those polled to say they are willing to raise taxes on someone else. But what happens when there is an economic downturn? I dealt with that concern for the state last week considering the possibility of a [*Shakespearean Tragedy for the State Budget.*](http://www.foxandhoundsdaily.com/2016/05/is-shakespearean-tragedy-brewing-for-the-state-budget/) Looks like the locals want to stage a similar play. When I write “locals,” I mean more than Los Angeles. If the legislature decides to change the restrictions on local governments imposing an income tax, does anyone think other jurisdictions will sit idly by? Los Angeles County supervisors say they want the money to help the homeless. There are a lot of other interests in communities around the state that consider the causes they believe in worthy of more economic help. But, what about the taxpayers? How long before local taxpayers who continue to get hit with increased tax rates throw up their hands and give up on Los Angeles and California? The burden continues to grow. Proposition 30 was sold as a temporary tax for seven years. Perhaps many high-end income taxpayers said they would weather the storm. However, those taxpayers are now looking at an additional *twelve years* of the highest income tax rate in the country BEFORE local governments jump on that gravy train. In the Los Angeles County Business Federation (BizFed) poll of members issued last week, the number one concern for small business owners was the income tax. Before anyone thinks the push for new taxes is only about the rich, consider what likely might occur if government budgets relying on increased income tax revenue are hard hit during a recession or economic slowdown. I remember reading about the Midwest congressman who announced on the floor of the House of Representatives in the early years of the 20th Century that he was voting for the amendment to the United States Constitution that would establish an income tax because his constituents wouldn’t pay the new tax. It was aimed at the rich. The income tax eventually came after his constituents, too. *(Joel Fox is the editor of Fox and Hounds and President of the Small Business Action Committee. This column was posted first at* [***FoxandHoundsDaily.com***](http://www.foxandhoundsdaily.com/2016/05/another-bad-idea-local-income-tax/)*) Prepped for CityWatch by Linda Abrams.* Written by Joel Fox on May 12 2016. ![](https://mail.citywatchla.com/images/stories/May-2016/039q.png) [](https://www.addtoany.com/share) [Comments](#disqus_thread) TAXED TO DEATH--Members of the Los Angeles County Board of Supervisors have suggested an income tax on millionaires dedicating the money for homelessness relief. Opening the door for local governments to impose income taxes would erode the state’s major fund raising mechanism, burden taxpayers with more paperwork, hit small businesses whose owners pay business taxes through personal income taxes, and subject more government revenue to a highly volatile revenue source. All in all -- a bad idea Last week, when Gov. Jerry Brown vetoed the bill that would have permitted local governments to levy cigarette taxes, he complained that there already are too many taxes on the coming ballot. A push for an income tax would increase the volume of tax measures facing voters. Yesterday, the LA Board of Supervisors put off for one week a motion to ask county lobbyists to try and convince legislators to change the law that prohibits local jurisdictions from imposing an income tax. Still, Pandora’s Box on local income taxes has been cracked open. If the movement persists, the consequences can be great. The proposal to levy local income taxes comes at a time that a statewide effort to extend the Proposition 30 state income tax levies is on-going. California’s top income tax payers already pay the highest income tax rate in the country. LA County wants to pile on. The LA County supervisors think they have a winning proposal. The press release announcing the effort said a poll showed 76% support. Advocates of the idea will point to [14 states](http://taxes.about.com/od/statetaxes/a/City-Income-Taxes.htm) that give permission for some local governments to raise income taxes. Of course, it’s always easy for those polled to say they are willing to raise taxes on someone else. But what happens when there is an economic downturn? I dealt with that concern for the state last week considering the possibility of a [*Shakespearean Tragedy for the State Budget.*](http://www.foxandhoundsdaily.com/2016/05/is-shakespearean-tragedy-brewing-for-the-state-budget/) Looks like the locals want to stage a similar play. When I write “locals,” I mean more than Los Angeles. If the legislature decides to change the restrictions on local governments imposing an income tax, does anyone think other jurisdictions will sit idly by? Los Angeles County supervisors say they want the money to help the homeless. There are a lot of other interests in communities around the state that consider the causes they believe in worthy of more economic help. But, what about the taxpayers? How long before local taxpayers who continue to get hit with increased tax rates throw up their hands and give up on Los Angeles and California? The burden continues to grow. Proposition 30 was sold as a temporary tax for seven years. Perhaps many high-end income taxpayers said they would weather the storm. However, those taxpayers are now looking at an additional *twelve years* of the highest income tax rate in the country BEFORE local governments jump on that gravy train. In the Los Angeles County Business Federation (BizFed) poll of members issued last week, the number one concern for small business owners was the income tax. Before anyone thinks the push for new taxes is only about the rich, consider what likely might occur if government budgets relying on increased income tax revenue are hard hit during a recession or economic slowdown. I remember reading about the Midwest congressman who announced on the floor of the House of Representatives in the early years of the 20th Century that he was voting for the amendment to the United States Constitution that would establish an income tax because his constituents wouldn’t pay the new tax. It was aimed at the rich. The income tax eventually came after his constituents, too. *(Joel Fox is the editor of Fox and Hounds and President of the Small Business Action Committee. This column was posted first at* [***FoxandHoundsDaily.com***](http://www.foxandhoundsdaily.com/2016/05/another-bad-idea-local-income-tax/)*) Prepped for CityWatch by Linda Abrams.* [![](https://mail.citywatchla.com/images/ME%20DENTAL%20SPA/me%20dental%202026%20final.jpg)](http://medentalspa.com/) ![](https://mail.citywatchla.com/images/banners/signup-for-cw.png) ## Get The News In Your Email Inbox Mondays & Thursdays Email [ ![LA DWP #2 (Pay Your Bill Help)](https://mail.citywatchla.com/images/LADWP/dwp%20level%20pay%205-7-25.jpg) ](https://mail.citywatchla.com/component/banners/click/82 "LA DWP #2 (Pay Your Bill Help)") [ ![Home - HHR Rent is too High - SB-2](https://mail.citywatchla.com/images/HHR/AHF-rent-too-high.jpg) ](https://mail.citywatchla.com/component/banners/click/104 "Home - HHR Rent is too High - SB-2") --- ## Featured CityWatch Stories [ ![](https://mail.citywatchla.com/media/yootheme/cache/fd/064h-fdb0b507.jpg) ](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=29355:remembering-ken-draper-citywatch-and-transparency-are-his-legacy&catid=12) ### [Remembering Ken Draper: CityWatch and Transparency Are his Legacy](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=29355:remembering-ken-draper-citywatch-and-transparency-are-his-legacy&catid=12) LA WATCHDOG - Ken Draper, the editor and publisher of CityWatch for more than 20 years, passed away on August 8, 2022… [ ![](https://mail.citywatchla.com/media/yootheme/cache/0f/061a-0f1ada2f.jpg) ](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=33148:brace-yourself-for-a-worse-housing-crisis&catid=398) ### [Brace Yourself For A Worse Housing Crisis](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=33148:brace-yourself-for-a-worse-housing-crisis&catid=398) PLANNING WATCH - The California State Legislature will soon vote on the following draft legislation. Please carefully… [ ![](https://mail.citywatchla.com/media/yootheme/cache/54/064j-54f0ecbd.jpg) ](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=33204:be-prepared-to-protect-our-democracy-in-november-from-a-trumpian-plot&catid=9) ### [Be Prepared to Protect Our Democracy in November From a Trumpian Plot](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=33204:be-prepared-to-protect-our-democracy-in-november-from-a-trumpian-plot&catid=9) BE AWARE - Back in the days when conservatives were so hungry for media platforms that they’d come on progressive shows… [ ![](https://mail.citywatchla.com/media/yootheme/cache/ab/063e-ab3b1ba1.jpg) ](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=33174:nithya-raman-loses-the-homelessness-gavel-her-record-explains-why&catid=396) ### [Nithya Raman Loses the Homelessness Gavel — Her Record Explains Why](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=33174:nithya-raman-loses-the-homelessness-gavel-her-record-explains-why&catid=396) THE BOTTOM LINE - Raman wants Los Angeles voters to promote her to mayor. Before handing her the keys to City Hall, v… [ ![](https://mail.citywatchla.com/media/yootheme/cache/75/064a-75d5dbb3.jpg) ](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=33199:your-boss-owns-your-workday-not-your-brain&catid=425) ### [Your Boss Owns Your Workday—Not Your Brain](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=33199:your-boss-owns-your-workday-not-your-brain&catid=425) THE NEURAL WORKPLACE - California must protect workers before workplace surveillance crosses the final frontier: the hu… --- ## [ LOS ANGELES ](https://mail.citywatchla.com/index.php?option=com_content&view=category&id=312) [ ![](https://mail.citywatchla.com/images/stories/Aug-2026/063j.jpg) ](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=33170:will-the-mayor-city-council-and-school-board-find-boldness-to-convert-empty-schools&catid=312)### [Will the Mayor, City Council and School Board Find Boldness to Convert Empty Schools?](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=33170:will-the-mayor-city-council-and-school-board-find-boldness-to-convert-empty-schools&catid=312) [ ![](https://mail.citywatchla.com/images/stories/Aug-2026/062g.jpg) ](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=33166:la-county-executive-job-candidates-new-and-old-sincere-and-opportunistic-are-lining-up&catid=312)### [LA County Executive Job: Candidates New and Old, Sincere and Opportunistic, are Lining Up](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=33166:la-county-executive-job-candidates-new-and-old-sincere-and-opportunistic-are-lining-up&catid=312) [ ![](https://mail.citywatchla.com/images/stories/Aug-2026/062n.png) ](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=33169:shame-on-da-nathan-hochman-the-prosecution-of-lapd-officer-daniel-flores&catid=312)### [Shame on DA Nathan Hochman: The Prosecution of LAPD Officer Daniel Flores](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=33169:shame-on-da-nathan-hochman-the-prosecution-of-lapd-officer-daniel-flores&catid=312) [ ![](https://mail.citywatchla.com/images/stories/Aug-2026/061k.jpg) ](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=33147:boyle-heights-warehouse-fire-lessons-learned&catid=312)### [Boyle Heights Warehouse Fire: Lessons Learned](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=33147:boyle-heights-warehouse-fire-lessons-learned&catid=312) [ ![](https://mail.citywatchla.com/images/stories/Aug-2026/061e.png) ](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=33144:candidate-sara-rascon-takes-corporate-pac-check-breaks-promise&catid=312)### [Candidate Sarah Rascón Takes Corporate PAC Check, Breaks Promise ](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=33144:candidate-sara-rascon-takes-corporate-pac-check-breaks-promise&catid=312)