Campbell (R-Irvine) is an Assemblyman representing the 70th District
in Orange County. Mr. Campbell is the Vice-Chairman of the Assembly
Budget Committee. He is the only CPA in the California State legislature
and recently received a national award as Freshman Republican
Legislator of the Year. He represents the cities of Newport Beach,
Laguna Beach, Irvine, Costa Mesa, Tustin, Aliso Viejo, Laguna
Woods and Lake Forest. He can be reached through his Assembly
and through the website
for his California Senate campaign.
A Tale of Two Cities
Cutting taxes in DC, piling on in Sacramento
by John Campbell 5/29/03
DC: I write you this week's report not from a plane
returning home from Sacramento but on one returning home from
Washington, DC. While I was in the nation's capitol, the President
held a couple of ceremonies at the White House.
One was to honor the World Champion Anaheim Angels in the White
House rose garden. Now, this may not qualify as a significant
moment in the quest for world peace or whatever, but for those
of us in Orange County, it was pretty neat. My continued condolences
to you Giant fans out there (not really). Anyway, the President
was warm, funny, and congenial and ended with comments about
champions setting examples for others.
The other event was somewhat more important in the grand scheme
of things as the President signed the growth package into law
thereby enacting the third largest tax cut in US history. I have
been a vocal advocate of this plan and particularly of the dividend
tax reduction provisions. Already, the investment community is
talking about cash dividends rather than solely paper earnings.
As investors demand more cash, which cannot be faked, the opportunities
for corporate malfeasance will drop and the efficient use of
capital will rise. Imagine, reforming something without giving
trial lawyers more ways to make up junk lawsuits! The package
will be a great thing for the economy. We should thank Congress
and the President. But be assured, if the economy recovers, Gray
Davis will claim he did it.
back in California, Democrats in the Assembly took the Governor's
horrible budget proposal
made it worse.
As of this writing, it appears that Democrats will put
a budget on the Assembly floor next week that increases
over $2 billion over last year! This in the midst of
the worst state
budget deficit in the history of the country! They do
it by increasing taxes by about $250 per person in the state
another $600 or so per person. ItÅfs so ludicrous
that it is beyond expression. But Republicans (and I
hope a few
reasonable Democrats, if there are any left) will stand
and will not allow
this reckless budget to pass. And we will stand firm
until spending is down and taxes are not up.