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A Look At How Governor Davis Does Tax Cuts

A Look At How Governor Davis Does Tax Cuts. ``I like nonsense, it wakes up the brain cells. Fantasy is a necessary ingredient in living, it's a way of looking at life through the wrong end of a telescope. Which is what I do, and that enables you to laugh at life's realities.'' Dr. Seuss.

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A Look At How Governor Davis Does Tax Cuts

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  1. A Look At How Governor Davis Does Tax Cuts ``I like nonsense, it wakes up the brain cells. Fantasy is a necessary ingredient in living, it's a way of looking at life through the wrong end of a telescope. Which is what I do, and that enables you to laugh at life's realities.'' Dr. Seuss “It was a creature so strange even Dr. Seuss couldn’t have dreamed it.” Los Angeles Times Editorial, June 28, 2000

  2. Governor Davis Agreed to Accelerated Car Tax Reductions Though modest in the midst of record budget surpluses, there will be almost $3 billion in family tax relief over the next two years. Beginning 1-1-2001, the VLF will be reduced by 67.5% rather than the current 35% However, the “devil” truly was in the details of what Governor Davis demanded

  3. The Reduction Could Have Been VERY Simple, BUT Fearing a lack of proper “credit” Governor Davis demanded a special tax rebate system to return the additional savings. “It's fair to ask why the state did not just trim the registration fee and save the $22.2 million it will cost to mail rebate checks. The governor's answer: "People don't appreciate the fact that they're getting a rebate unless they see it in their hands." And he'll get to send along with the checks a personal message--it won't quite say, "Who loves you, baby?" but it will be close.” Los Angeles Times Editorial, June 28, 2000

  4. The Davis Plan • Do NOT change the 35% credit on the VLF to 67.5% on the vehicle registration from DMV • Have the motorist pay DMV the higher rate • Weeks or months later, Governor Davis would send the additional reduction in the VLF to the motorist as a “tax rebate” with a nice letter The bottom line is the state must pay for some fifty-six million mailers over the next two years that do nothing but promote Governor Davis

  5. Assembly Republicans Have a Better Idea: Pass AB 2165 AB 2165 is set for hearing August 7th and mandates that the full 67.5% VLF credit be given at the time the registration is paid! • California Motorists keep ALL the money that they are entitled too • The State saves approximately $45 million in mailing costs over two years Here is how it would work…

  6. Amy pays DMV $130 Some months later Amy gets a nice letter from Governor Davis with her rebate of $65 Amy pays DMV $65 Period. Amy is a Single Mom Amy is raising her two girls and driving the 1996 Honda that was given to her last year. The car is valued at $10,000 this year, so her full VLF would be $200 before any offsetting credit. The Davis Plan: The Republican Plan:

  7. Kate pays DMV $390 Some months later Kate gets a nice letter from Governor Davis with her rebate of $195 Kate pays DMV $195 Period Kate is a Soccer Mom Kate takes her kids to school in the 1999 SUV they purchased last year. The car is valued at $30,000 this year, so her full VLF would be $600 before any offsetting credit. The Davis Plan: The Republican Plan:

  8. Jim pays DMV $585 Some months later Jim gets a nice letter from Governor Davis with his rebate of $292 Jim pays DMV $293 Period Jim Has Retired Jim retired last year and bought a used motor home so he and the wife could visit all the grandkids. The unit is valued at $45,000 this year, so the full VLF would be $900 before any offsetting credit. The Davis Plan: The Republican Plan:

  9. Sam pays DMV $4,225 Some months later Sam gets a nice letter from Governor Davis with a rebate of $2,112 Sam pays DMV $2,113 Period. Sam Has a Small Business Sam runs a small produce wholesaling business with ten delivery trucks. The fleet is valued at $325,000 this year, so the full VLF would be $6,500 before any offsetting credits. The Davis Plan: The Republican Plan:

  10. Just One More Item to “Blue-Pencil” from the budget Governor Davis used his blue pencil to reduce the FY 2000-2001 state budget by almost a billion dollars AB 2165 provides California families all of their VLF savings up-front and would “blue-pencil” another $22.2 million in unnecessary costs!

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