March 5, 1975 (8 pages)

6 The Nevada County Nugget Wed.,March 5,1975 Amazing growth in tax revenues Despite mass unemployment and the disastrous level of business failures, state finance experts are projecting amazing 37 per cent growth in personal income tax revenues for the 7475 fiscal year, continuing into 7576 for a 17 per cent growth in that period. The instant conclusion might bé* that the rich are getting . richer. That might well be the case in some situations but it doesn’t account for the phenomenon being experienced by the state. The true situation is that most. wage earners and salaried persons are getting poorer even with pay increases. Inflation in part is responsible but, as Kirk West points out, the . major factor is taxation. West is Executive Vice President of the California Taxpayers Association. He deftly puts his finger on the * real villain responsible for the average persons increasing poverty. It is the rigidity of tax rates which make no provision for inflation. California income tax laws, like federal income tax rates, make no provision for inflation. Because of this, families whose earnings were too small to be subject to income tax are now feeling the tax bite simply because of cost of living adjustments in their pay. “Each year, many thousands of low income Californians are added to income tax rolls solely due to inflation, and not to an increase in real income,” West said. Additionally, he stated, thousands of individuals are being pushed up the tax bracket ladder and pay a_ higher proportion of their income in taxes while receiving no increase in real income. Actually, some find themselves taking home fewer dollars after a pay increase. Dollars which buy less on today’s market. It isn’t just the tax bracket, which West terms a “progressivity” rate structure, ’ that is wiping out any benefits for cost of living salary increases. It is also the fixed a exemptions and deductions. Deductions for dependents, West said,.are worth about onethird less in 1975 than they were when the rate was last fixed in 1967. And the homeowner is doubly hit as the flat $1750 homeowner exemption on property taxes declines in relative value as assessed valuations soar. “Tax revenues,’’ West declared, ‘“‘at least in the short run, are swollen ar. tificially and real personal income is correspondingly reduced. Inflation is forcing a reduction in the income of the private sector and an increase in the income of the public sector due to state and federal tax = structures.” “This shift in income is not due to conscious tax policy but is instead an unintended result of inflation.” What West proposes as a possible cure is “a very careful look” at ‘‘indexing”’ of tax rates. This is a system where tax laws have a built-in adjustment factor to offset inflation. ‘While income tax rates would remain the same for the various brackets, the bracket would be adjusted to~ dollar value changes. Such a factor would also apply to exemptions, deductions and credits. He cautions the plan in California is not without drawbacks. “The Divine Eccentric’ by Nevada City Author Doris Foley A WELL DOCUMENTED STORY OF LOLA MONTEZ . STARTS MAR. 5th IN THE NEVADA COUNTY NUGGET “Divine and eccentric’’ were two words most often used by newspapermen of the 18 the European danseuse and favori that is before she caused his abdic 50’s to describe Lola Montez, te of King Ludwig of Bavaria, ation and her own exile. Lola’s California adventure began the morning she stepped off the Northerner, and never stopped until she had rocked and scandalized the state from city to mining camp and back again. Her marriages, her lovers, her wild tantrums, her talent and her strange efforts to settle for keeps in Grass Valley, has tied her inseparably to Ca Nevada City author Doris Fo through California’s news ween 1853 and 1861 for t historical book. What the newspa makes rather contrasty reading wit lifornia history. ley assiduously searched papers, of every issue published bethe material in this different kind of pers said about divine Lola h what Lola said about herself — for her autobiography is included also in this work. Mail your check today—don’t miss a single issue THE NUGGET, P.O. Box 828, Nevada City, Calif. 95959 Your Western Nevada County Historical Weekly Newspaper nevapa COUNTY NUGGET Serving the historical Gold Rush communities of Nevada City, Grass Valley, Red D i ’ ; og, Town Talk, Glenbrook, Littl Cherokee, Mooney Fiat, Sweetland, Alpha, Omega, French Corral, Rough and Ready, Graniteville, North Gur Jaan, or Bloomfield, Humbzg, Relief Hill, Washington, Blue Tent, LaBarr Meadows, Cedar Ridge, Union Hill, Peardale. Summit City. Walloupa, Gouge Eye, Lime Kiln, Chicago Park, Wolf, Christmas Hill, Liberty Hill, Sailor Flat, Lake City, Selby Flat, Grizzly Hill, Don't Miss it! Gold Flat, Soggsville, Gold Bar, Lowell Hill, Bourbon Hill, Scotch Hill, North Columbia, Columbia Hill, Brandy Flat, Sebastopol, Quaker Hill, Willow Valley, Newtown, Indian Flat, Bridgeport, Birchville, Moore’s Flat, Orleans Flat, Remington Hill, Anthony House, Delirium Tremens. SUBSCRIBE NOW TO THE NUGGET “tes $00 3 Years $7.00

6 The Nevada County Nugget Wed.,March 5,1975 Amazing growth in tax revenues Despite mass unemployment and the disastrous level of business failures, state finance experts are projecting amazing 37 per cent growth in personal income tax revenues for the 7475 fiscal year, continuing into 7576 for a 17 per cent growth in that period. The instant conclusion might bé* that the rich are getting . richer. That might well be the case in some situations but it doesn’t account for the phenomenon being experienced by the state. The true situation is that most. wage earners and salaried persons are getting poorer even with pay increases. Inflation in part is responsible but, as Kirk West points out, the . major factor is taxation. West is Executive Vice President of the California Taxpayers Association. He deftly puts his finger on the * real villain responsible for the average persons increasing poverty. It is the rigidity of tax rates which make no provision for inflation. California income tax laws, like federal income tax rates, make no provision for inflation. Because of this, families whose earnings were too small to be subject to income tax are now feeling the tax bite simply because of cost of living adjustments in their pay. “Each year, many thousands of low income Californians are added to income tax rolls solely due to inflation, and not to an increase in real income,” West said. Additionally, he stated, thousands of individuals are being pushed up the tax bracket ladder and pay a_ higher proportion of their income in taxes while receiving no increase in real income. Actually, some find themselves taking home fewer dollars after a pay increase. Dollars which buy less on today’s market. It isn’t just the tax bracket, which West terms a “progressivity” rate structure, ’ that is wiping out any benefits for cost of living salary increases. It is also the fixed a exemptions and deductions. Deductions for dependents, West said,.are worth about onethird less in 1975 than they were when the rate was last fixed in 1967. And the homeowner is doubly hit as the flat $1750 homeowner exemption on property taxes declines in relative value as assessed valuations soar. “Tax revenues,’’ West declared, ‘“‘at least in the short

run, are swollen ar. tificially and real personal income is correspondingly reduced. Inflation is forcing a reduction in the income of the private sector and an increase in the income of the public sector due to state and federal tax = structures.” “This shift in income is not due to conscious tax policy but is instead an unintended result of inflation.” What West proposes as a possible cure is “a very careful look” at ‘‘indexing”’ of tax rates. This is a system where tax laws have a built-in adjustment factor to offset inflation. ‘While income tax rates would remain the same for the various brackets, the bracket would be adjusted to~ dollar value changes. Such a factor would also apply to exemptions, deductions and credits. He cautions the plan in California is not without drawbacks. “The Divine Eccentric’ by Nevada City Author Doris Foley A WELL DOCUMENTED STORY OF LOLA MONTEZ . STARTS MAR. 5th IN THE NEVADA COUNTY NUGGET “Divine and eccentric’’ were two words most often used by newspapermen of the 18 the European danseuse and favori that is before she caused his abdic 50’s to describe Lola Montez, te of King Ludwig of Bavaria, ation and her own exile. Lola’s California adventure began the morning she stepped off the Northerner, and never stopped until she had rocked and scandalized the state from city to mining camp and back again. Her marriages, her lovers, her wild tantrums, her talent and her strange efforts to settle for keeps in Grass Valley, has tied her inseparably to Ca Nevada City author Doris Fo through California’s news ween 1853 and 1861 for t historical book. What the newspa makes rather contrasty reading wit lifornia history. ley assiduously searched papers, of every issue published bethe material in this different kind of pers said about divine Lola h what Lola said about herself — for her autobiography is included also in this work. Mail your check today—don’t miss a single issue THE NUGGET, P.O. Box 828, Nevada City, Calif. 95959 Your Western Nevada County Historical Weekly Newspaper nevapa COUNTY NUGGET Serving the historical Gold Rush communities of Nevada City, Grass Valley, Red D i ’ ; og, Town Talk, Glenbrook, Littl Cherokee, Mooney Fiat, Sweetland, Alpha, Omega, French Corral, Rough and Ready, Graniteville, North Gur Jaan, or Bloomfield, Humbzg, Relief Hill, Washington, Blue Tent, LaBarr Meadows, Cedar Ridge, Union Hill, Peardale. Summit City. Walloupa, Gouge Eye, Lime Kiln, Chicago Park, Wolf, Christmas Hill, Liberty Hill, Sailor Flat, Lake City, Selby Flat, Grizzly Hill, Don't Miss it! Gold Flat, Soggsville, Gold Bar, Lowell Hill, Bourbon Hill, Scotch Hill, North Columbia, Columbia Hill, Brandy Flat, Sebastopol, Quaker Hill, Willow Valley, Newtown, Indian Flat, Bridgeport, Birchville, Moore’s Flat, Orleans Flat, Remington Hill, Anthony House, Delirium Tremens. SUBSCRIBE NOW TO THE NUGGET “tes $00 3 Years $7.00