BUDGET HURTS ELDERLY, DEMS SAY.Byline: Harrison Sheppard Sacramento Bureau SACRAMENTO - Democrats charge that Gov. Arnold Schwarzenegger's proposed budget has the same effect as a tax increase on the state's most vulnerable citizens by chopping chop 1 v. chopped, chop·ping, chops v.tr. 1. a. To cut by striking with a heavy sharp tool, such as an ax: chop wood. b. cash benefits for 600,000 elderly, blind and disabled Californians. Schwarzenegger, who said his budget won't raise taxes, wants to scale back the renters' tax credit that currently provides payments up to $347 to low-income elderly, blind and disabled people. His plan also eliminates a program that provides similar cash benefits to homeowners in the same demographic, instead offering them loans to cover their property taxes. ``The governor says that he's not proposing tax increases, but in fact what he's got in this budget is an increase in taxes to the poorest senior citizens by eliminating the senior citizen property tax and renters' tax credit,'' said Sen. Wes Chesbro, D-Santa Rosa, chairman of the Senate Budget and Fiscal Review committee. Administration officials said those, technically, are not tax-related programs and the homeowner plan could give recipients larger benefits in some cases. The 2005-06 budget proposes scaling back the Senior Citizens Renters' Tax Assistance program by lowering the income threshold to $15,000 and below, rather than the current limit of $38,000, and reducing payments. The budget folds the Senior Citizens' Property Tax Assistance Program for elderly, blind and disabled homeowners - which provides payments up to $473 - and merging it with a separate program that provides tax deferrals tax deferral The delay of a tax liability until a future date. For example, an IRA may result in a tax deferral on the amount contributed to the IRA and on any income earned on funds in the IRA until withdrawals are made. , rather than rebates. Department of Finance spokesman H.D. Palmer said the programs are considered public benefits, not tax credits, even though they are administered by the Franchise Tax Board. He said in most cases, homeowners would save more by shifting to the Senior Citizens' Property Tax Deferral Program - although the money would eventually have to be paid back, with interest, when the home is sold. ``Once a little further light is shed on the impact of these and the rationale rationale (rash´  nal´),n the fundamental reasons used as the basis for a decision or action. for it, we think this is an appropriate step,'' Palmer said. ``In the case of the property tax assistance, it could provide seniors with greater relief than the current program does.'' According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the administration's figures, homeowners at the bottom of the income and home-value scale would do worse under the shift, but most others would save cash although they would be accumulating debt. Those making less than $5,000 with homes valued at $40,000 currently pay $400 in property taxes, but receive $473 in payments under the program. The new program would defer de·fer 1 v. de·ferred, de·fer·ring, de·fers v.tr. 1. To put off; postpone. 2. To postpone the induction of (one eligible for the military draft). v.intr. the $400 in taxes, but provide no payment. All other income levels would be able to defer amounts in the new program greater than the payments received under the current program. For example, someone with $35,000 in income and a home worth $175,000 now receives a payment from the state of $31. Under the deferral deferral - Waiting for quiet on the Ethernet. program, the homeowner could defer the entire tax payment of $1,750. That tax obligation would be attached as a lien lien, claim or charge held by one party, on property owned by a second party, as security for payment of some debt, obligation, or duty owed by that second party. and would accumulate Accumulate Broker/analyst recommendation that could mean slightly different things depending on the broker/analyst. In general, it means to increase the number of shares of a particular security over the near term, but not to liquidate other parts of the portfolio to buy a security interest - currently 2 percent a year - until the property is sold. Shifting the homeowners program to a deferral was a recommendation generated by the governor's California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). Performance Review, which said the program established in 1967 ``is no longer needed for homeowners because Proposition 13 reduced and stabilized sta·bi·lize v. sta·bi·lized, sta·bi·liz·ing, sta·bi·liz·es v.tr. 1. To make stable or steadfast. 2. property taxes.'' The administration said the two changes would save the state about $136 million. Groups representing senior citizens and taxpayers said they are still reviewing the proposals. ``These are difficult economic times and every government expenditure has to be looked at. However, the elimination of a tax credit, specifically for older homeowners who are paying taxes - we have serious questions about that,'' said Jon Coupal, president of the Howard Jarvis Taxpayers Association Howard Jarvis Taxpayers Association helped sponsor Proposition 13, the property tax-cutting initiative in California in 1978 which slashed property taxes by fifty-seven percent and initiated a national tax revolt. It was founded by California republican Howard Jarvis. . Harrison Sheppard, (916)446-6723 harrison.sheppard(at)dailynews.com CAPTION(S): box Box: THE DETAILS Source: Calif. Department of Finance |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion