NEW: Low Interest Rates Will Kill Tax Hikes

◼ All the proposed ballot initiatives to increase taxes in California are headed for a hard fall at the ballot box – because the economy is sluggish. And the economy won’t pick up speed unless savers and pensioners begin to realize a high enough interest rate on their investments. - CalWatchdog

As long as very low interest rates are robbing savers and retirees of their wealth and suppressing an economic recovery, it is highly unlikely that any of the proposals to raise taxes on the Nov. 2012 ballot will succeed. The tax proposals on the upcoming California ballot are diverting attention from larger federal policy that is squelching an economic recovery.

Yet More Taxes

There are even more taxes in the pipeline: cigarette taxes, oil taxes, gas taxes, out-of-state business taxes, and imposing reassessments for commercial property taxes every year instead of when a property resells, as is now provided under Proposition 13. The tax proposal on oil and gas would increase such taxes 40 percent higher than any other state in the Union.

These tax proposals do not include the $11.1 billion Water Bond scheduled to also be on the ballot. The water bond actually would cost about $18 billion with matching fund requirements. Counting interest, the Water Bond would cost about $36 billion....More at the link