Questions and Answers Essay on Raising Taxes in California

Why is it so difficult to raise taxes in California? What impact does this have on the state's budget plans?

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It is difficult to raise taxes in California because the income growth is slowing for the highest earners. California relies very much on the top earners due to Proposition 30, which was passed in 2012 for raising taxes to individuals earning over $250,000. The California state depends on a volatile tax base. The alternative sources of revenue have their challenges. Some economists and lawmakers have called for raising the property taxes (Dave and Natalie).

The effect on the state budget is evident deficits. The taxes from the high earners are not growing as fast as anticipated. The reduced earnings are the main reasons for the anticipated shortages in the budgets. At the same time, the slower growth of wages in sectors paying the highest salaries will harm the budget (Dave and Natalie).

What are some of the differences between liberal and conservative ideas regarding the political reforms that are needed in California? What are the major arguments made by both sides?

Liberals in California call for the ability to select and replacing legislatures. Historically, the Californian liberals have focused on a broad legal power of electing legislative representatives, until recently it focused on universal franchise. The Californian liberals also focus on protecting critical civil liberties such as speech, privacy, detention, and arrest (Horowitz).

The Californian conservative ideas are different from the liberals, including preservation of the status quo where the highly wealthy individuals are taxed highly and mass incarceration still actively supported. In the last decade, California has been at the center of the efforts of the nation towards reducing mass incarcerations. The conservative ideas call for preserving private ownership and personal wealth alongside the emphasis on self-dependence (Horowitz).

Has the initiative process become a useful tool of average citizens, or have powerful, well-organized interests dominated it? Explain your answer.

The initiative process refers to a type of direct democracy where the citizens propose, which then go to a popular referendum. Direct initiatives result in a public vote or referendum while the indirect efforts lead to the elected officials making the final decisions. For both cases, the proposal must have enough public support through endorsements or signatures before being submitted for review by the legislature (Initiative Process).

In California, an initiative process is a crucial tool for good governance. Since the process was introduced, Californians have used 115 initiatives. The importance of this process is supported by the fact that interest groups, voters, elected officials, and activist have all embraced the initiative process. The initiative process is useful in increasing and cutting taxes, mandating spending, abolishing affirmative action, and reorganizing government agencies (Initiative Process).

What role do interest groups play in California politics, and what methods do they use to influence elected officials?

Interest groups refer to any organization of individuals having policy goals and working in the political process towards promoting these objectives. The group tries influencing policy in California through lobbying government. The organized interests employ representatives who advocate on behalf of the benefits of the group. The lobbying activities include making contact with members of the executive branch and the Congress for the dissemination of information regarding the adverse or positive impacts of the proposed legislation (Berry 34).

Additionally, the interest groups influence policy by taking part in election activities. For example, the interests can try changing elections to assist people who support their issues to get reelected or elected. These are achieved through giving electorates funds, endorsement of questions or candidates, and carrying out grassroots activities such as free drives (Berry 36).

What are the major expense categories for California cities? From what sources do cities receive their revenue?

Presently, the costs of living in California are higher compared to the national average by 43%. The prices of living in any region depend on different factors such as average salary, real estate market, and career. The major expense category in California is housing, utilities, and transportation, which are higher than the national average by 127%, 8%, and 31% respectively (Payscale).

The second major expense category is food and grocery, which is 12% higher compared to the national average. The third major expense category is healthcare, which is 10% higher compared to the national average. The distribution of these expense categories in the cities depends on the average levels of income of the population and the standards of living (Payscale).

How has the Affordable Care Act affected those without health insurance in California? What are the significant obstacles to obtaining health insurance in California?

After the Affordable Care Act (ACA) was passed, the numbers of uninsured people in California reduced to 2.8 million. The ACA provides the alternative of expansion of federally bankrolled Medicaid to persons having household incomes below 133%. Additionally, ACA offers state health insurance marketplaces in which lawfully present immigrants lacking enough employer-provided health insurance can buy private insurance (Blumenthal, David, Melinda, and Rachel 2451).

ACA also provides some transformations in funding by the federal government for healthcare providers and health insurance, which affects safety net care for the uninsured Californians. At the same time, the significant challenges to having health insurance include the lengthy procedures involved, lack of skilled personnel and the citizenship status of Californians, especially when one is an immigrant (Blumenthal, David, Melinda, and Rachel 2455).

Work Cited

"Initiative Process." What's Next California? Deliberative Poll | NextCA.org, 2016, www.nextca.org/topics/entry/initiative-process. Retrieved from http://www.nextca.org/topics/entry/initiative-process

Berry, Jeffrey M. Lobbying for the people: The political behavior of public interest groups. Princeton University Press, 2015. Retrieved from https://books.google.co.ke/books?hl=en&lr=&id=6E19BgAAQBAJ&oi=fnd&pg=PP1&dq=4.%09What+role+do+interest+groups+play+in+California+politics&ots=6kbJCBDhUh&sig=vuSFsdPvEQmVTIFMeu3hwFOOtgU&redir_esc=y#v=onepage&q&f=false

Blumenthal, David, Melinda Abrams, and Rachel Nuzum. "The affordable care act at five years." (2015): 2451-2458. Retrieved from https://www.researchgate.net/profile/Rachel_Nuzum/publication/276071131_The_Affordable_Care_Act_at_5_Years/links/59ee0fa34585154350e8004e/The-Affordable-Care-Act-at-5-Years.pdf

Dave, Paresh, and Kitroeff Natalie. "What's Hurting California's Budget: The Rich Aren't Getting Richer As Fast As They Used to." Latimes.com, 12 Jan. 2017. Retrieved from https://www.latimes.com/business/la-fi-deficit-california-ipo-20170112-story.html

Horowitz, Asher. "Asher Horowitz | Department of Political Science | Faculty of Liberal Arts and Professional Studies." York University, 15 Mar. 2011. Retrieved from http://www.yorku.ca/horowitz/courses/lectures/39_mill_liberalism_democracy.html

Payscale. "Cost of Living in Los Angeles, CA." Salary Comparison, Salary Survey, Search Wages, www.payscale.com/cost-of-living-calculator/California-Los-Angeles. Retrieved from https://www.payscale.com/cost-of-living-calculator/California-Los-Angeles