Contributor

John Campbell

John 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 website 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

Washington 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.

Sacramento: Meanwhile, back in California, Democrats in the Assembly took the Governor's horrible budget proposal and made it worse. As of this writing, it appears that Democrats will put a budget on the Assembly floor next week that increases spending by 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 and by borrowing 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.