Politics

California Supreme Court to rule on high-stakes battle over ballot measure restricting tax increases

Published

2 weeks ago

May 7, 2024

California Supreme Court to rule on high-stakes battle over ballot measure restricting tax increases

The battle between business and labor is headed for a high-stakes showdown at the California Supreme Court this week over a ballot measure that would tip the balance of power at the state Capitol.

The court on Wednesday will hear oral arguments on the legality of an initiative backed by business interests that strips the state Legislature and the governor of the ability to increase taxes and requires statewide voter approval.

In an effort to quash the measure, Gov. Gavin Newsom and legislative Democrats petitioned the Supreme Court last September to intervene. They argued that change revises the California Constitution and, therefore, can only be placed on the ballot if ratified during a Constitutional Convention or by winning a two-thirds vote in the Legislature.

The proposal has alarmed Democrats, unions and their liberal allies. The measure could limit state and local funding, hamstring the ability to generate new money for programs and make it more challenging for the governor and Legislature to offset a budget deficit in an economic crisis without slashing progressive policy priorities.

“They should be afraid because the people of California are fed up,” said Rob Lapsley, president of the California Business Roundtable, a proponent of the measure. “This gives the people of California the right to vote on future taxes, and voters are going to support it if it’s on the ballot.”

If approved by voters, the proposal would mark a historic win for the business community. Lapsley said establishing new checks and balances on taxation is essential to creating jobs and attracting companies to California.

Labor unions representing state workers, teachers, police and firefighters have joined forces with Democrats and dozens of other organizations to ask the high court to strike down the measure. They argue it would impair essential government functions and threaten services that rely on state dollars.

“I want to make it clear that the ‘Taxpayer Deception Act’ lets wealthy corporations, who can afford expensive campaigns, to block taxes on their industry while regular Californians, regular people, shoulder more of the cost of critical services,” said Tia Orr, executive director of Service Employees International Union California, which is leading the charge to defeat the measure on the ballot.

Officially dubbed the “Taxpayer Protection and Government Accountability Initiative,” the measure pushed by Lapsley’s group and the Howard Jarvis Taxpayers Assn. asks voters to require local governments to vote on all fee increases, which can now be approved administratively. The threshold to increase local special taxes would increase from a majority to a two-thirds vote of the people.

Fee increases at the state level, which are often approved by state agencies and boards, would need support from a majority of the state Legislature. The measure would expand the requirements necessary for a statewide tax increase, which currently can be done with a two-thirds vote of the Legislature. Under the ballot measure, support from a majority of California voters also would be required.

Taxes are often applied to the sale of goods, or income, for example, and pay for a variety of government expenses through the state general fund. A fee is typically collected and spent on a more specific service.

The measure expands the definition of taxes and restricts the potential use of fees to only cover the cost of the service, potentially prohibiting government from redirecting revenue to other purposes to close a budget deficit. The changes would take effect retroactively and reverse many local and state tax and fee increases approved since Jan. 1, 2022.

Carolyn Coleman, chief executive of the League of California Cities, said the new requirements for local ballot measures would effectively erase more than 100 measures that voters already approved with a majority vote. In Walnut Creek, for example, it would rescind a local public safety measure that voters approved with a 65% majority in 2022. The measure funded five new police officers, she said.

Opponents and supporters said that, if approved, the taxpayer ballot measure could rescind the “mansion tax,” also known as Measure ULA that took effect in Los Angeles last year. The measure applies a 4% charge on all property sales above $5 million and a 5.5% charge on sales above $10 million to fund housing and homelessness initiatives.

Lapsley argued that the mansion tax is “singularly the worst economic policy that you can possibly have in freezing the whole commercial, retail and residential real estate market in L.A.”

The luxury real estate market has slowed since the measure was adopted, but the charge has also raised about $215 million in funding in its first year.

Groups that have given money directly to Lapsley’s campaign, or funded other political action committees that contribute to the measure, include developers, landlords and real estate managers, among others with an interest in ending the mansion tax.

In addition to weighing whether the state ballot initiative constitutes a revision of the Constitution, the Supreme Court will consider the argument that it affects essential government functions.

Erin Mellon, a spokesperson for Newsom, said that in the event of a financial crisis the measure would require government to wait up to two years for the next ballot to raise taxes, “potentially putting lives and our economy at risk.”

“The governor is not a proponent of tax increases and has fought against propositions seeking to add new taxes, but the recession 15 years ago — and the current budget challenges facing our state — underscore the need for government to use every tool in the toolbox to respond to crises,” Mellon said in a statement. “The California Supreme Court should keep this radical effort led by wealthy business interests off the ballot because it violates the Constitution by attempting to completely restructure our system of government in a way that will prevent government from protecting Californians from future crises.”

The case elevates the ongoing fight between progressive labor unions and the business community from the halls of the state Capitol to California’s highest court.

Companies in California often complain that they can’t get a fair shake in a state Legislature dominated by Democrats and under the powerful political influence of labor unions. Business interests are increasingly turning to the statewide ballot to block and stall progressive laws from taking effect, or to push their own policy agenda directly to voters.

The proposed ballot measure could deal a blow to labor unions and other interest groups, who would find it more challenging and more expensive to convince voters to increase taxes to back their policy agenda than making their case just to legislators. Requiring lawmakers to pass bills to increase every new fee could also become a political challenge.

Lapsley and others said it’s rare for the Supreme Court to take up this type of pre-election challenge to a ballot measure. He said he feels that it’s fair for the court to consider the arguments, but he criticized Democrats for bringing the case.

“The fact that the Legislature and the governor are using taxpayer money to try and deny the voters of California, over 1.43 million who signed our petitions, the opportunity to have their voice heard is a direct violation of everything they talk about in terms of direct democracy,” Lapsley said. “They’re complete hypocrites when it comes to this case.”

Each side has 30 minutes to present an oral argument to the Supreme Court on Wednesday in San Francisco. The court is expected to release a ruling sometime before the June 27 deadline for measures to qualify for the ballot.

Politics

Experts reveal major 'downside' to potential Trump VP pick: 'No wow factor'

Published

3 hours ago

May 19, 2024

Press Room

Experts reveal major 'downside' to potential Trump VP pick: 'No wow factor'

Editor’s note: This is the second in a series of profiles of potential running mates for presidential candidate Donald Trump on the 2024 Republican Party ticket.

A possible frontrunner on former President Trump’s running mate shortlist has a major “downside” that could make his potential selection a bad bet, multiple campaign and election experts told Fox News Digital.

The horse race among those hoping to be named Trump’s running mate continued this week. Those widely believed to be on the shortlist made the rounds on various media outlets and at events alongside the former president, including North Dakota Gov. Doug Burgum, who some say lacks a “wow factor.”

“He’s not a known commodity. He’s not somebody that, I think, instinctively would fire up the base or fire up Republicans,” GOP strategist Dave Polyansky said, citing concerns over Burgum’s lack of name recognition despite running in the Republican presidential primaries last year.

TRUMP VEEP STAKES: THE PROS AND CONS OF SOUTH DAKOTA GOV. KRISTI NOEM

From left to right: Ohio Sen. JD Vance, Florida Sen. Marco Rubio, Arkansas Gov. Sarah Sanders and North Dakota Gov. Doug Burgum. (Getty Images)

He argued that, although firing up the base wasn’t the main purpose in a choice for running mate, there was no “overwhelming cry” from Republicans across the country for Burgum to be the pick.

“Again, that shouldn’t necessarily be a decider, but there’s no wow factor to him,” Polyansky said.

Veteran Republican strategist Karl Rove agreed Burgum’s name recognition was also a problem and that he’s “from a small, heavily Republican state” when the battle for the presidency could come down to who wins over voters in the battlegrounds of Arizona, Michigan, Pennsylvania, Nevada and Wisconsin.

Rove also predicted Burgum’s wealth could “make him a target for the left.”

WATCH: POSSIBLE TRUMP VP PICK MAKES MAJOR PREDICTION ABOUT BLACK VOTERS AS BIDEN BLEEDS SUPPORT

Republican strategist Erin Perrine told Fox “the downsides to Burgum’s selection are not deeply controversial given other possible selections the former president could make” but agreed with Rove that Burgum hailing from a reliably red state with a small population wouldn’t impact the electoral map.

“Some might argue that other potential candidates could bring more expertise, higher visibility or diversity to the ticket, leading to doubts about Burgum’s suitability as a VP nominee,” she said. She added Burgum declaring last year he wouldn’t serve as Trump’s running mate, as well as the possibility he might face intensified media scrutiny regarding his absence from North Dakota over the past year, would likely complicate his selection.

North Dakota Governor Doug Burgum encourages voters to support Republican presidential candidate and former President Trump during a campaign rally in the basement ballroom of The Margate Resort Jan. 22, 2024, in Laconia, N.H. (Chip Somodevilla/Getty Images)

“It doesn’t take much for the media to pounce, and campaigning as a sitting governor has proven difficult for others running for other offices before,” she said.

Others were more blunt when it came to the possibility of Burgum’s selection, including a source close to the Trump campaign who said there was “more downside than upside there,” citing the concerns over his name recognition and being from North Dakota.

“If I had to rank him, I’d put him in the top five, maybe five or six, but not any higher,” the source said.

GOP pollster Scott Rasmussen simply told Fox, “I see no reason why Gov. Burgum should even be in the discussion other than media speculation. The fact that Trump featured him at the recent rally is interesting, but I suspect the governor will play some other role in the campaign.”

Burgum, despite those concerns, does have a number of strong qualities experts said could provide a boost to Trump, including his record as the chief executive of a state and as a business leader.

TRUMP’S POTENTIAL RUNNING MATES TO COMPETE FOR APPROVAL AT MAJOR CHRISTIAN CONFERENCE AS SPECULATION SWIRLS

Former President Trump, a Republican presidential candidate, attends the annual Lincoln Reagan Dinner hosted by the Minnesota Republican Party May 17, 2024, in St. Paul, Minn. (Scott Olson/Getty Images)

“Burgum is a successful two-term governor of a major energy- and agricultural-producing state who’s championed education reform, tax cuts and government reform,” Rove said. “He’s also built a tech company — Great Plains Software — in the Midwest heartland, which he sold to Microsoft, becoming a top executive with the company before entering politics.”

Polyansky said one of the most “compelling” reasons to have Burgum’s name on the ticket was because of his television presence.

“He’s proven himself over the last month to be a great, very agile and pretty effective communicator,” he said. “Burgum’s shown that he can do some good in terms of his ability to communicate and drive a message.”

Perrine said Burgum’s “no-drama, no-nonsense demeanor has boosted the economy and safety of North Dakota,” and that being a “businessman-turned-governor” was “a mirror to Trump that the former president would appreciate.”

The source close to Trump’s campaign praised the governor as “a vote getter.”

“He’s a decent man,” the source said.

From left to right: House GOP Conference Chair Elise Stefanik, Virginia Gov. Glenn Youngkin, South Dakota Gov. Kristi Noem and U.S. Sen. Tim Scott of South Carolina. All have been floated as possible vice presidential running mates for former President Trump. (Getty Images)

A number of other big names have also been floated to join Trump on the Republican ticket, including South Carolina Sen. Tim Scott, Arkansas Gov. Sarah Sanders, Virginia Gov. Glenn Youngkin, House GOP Conference Chair Elise Stefanik, South Dakota Gov. Kristi Noem, Ohio Sen. JD Vance and Florida Sen. Marco Rubio.

Trump, who spent most of his week sitting on trial in a New York City courtroom while President Biden and Vice President Kamala Harris are free to hit the campaign trail, is still weighing his running mate options. He suggested last week he might even wait until the July Republican National Convention in Milwaukee to name his pick.

Fox News Digital has reached out to representatives of Burgum for comment.

Get the latest updates from the 2024 campaign trail, exclusive interviews and more at our Fox News Digital election hub.

Brandon Gillespie is an associate editor at Fox News. Follow him on X at @BGillespieAL.

Politics

Column: Champagne wishes and caviar dreams … of a Senate seat in Wisconsin?

Published

4 hours ago

May 19, 2024

Press Room

Column: Champagne wishes and caviar dreams … of a Senate seat in Wisconsin?

Eric Hovde has, from the looks of it, a pretty swell life.

The banking executive is a millionaire many times over. He owns an ocean-view mansion in Laguna Beach and was named by the Orange County Business Journal for three years running as one of the county’s most influential individuals.

Yet for more than a decade, Hovde, 60, has had a hankering to hold political office. Normally, this is where we’d insert the long litany of rich folk — Michael Huffington, Al Checchi, Meg Whitman among them — who’ve tried and face-planted in their bid to get elected statewide in California.

But Hovde isn’t running here: He’s the leading Republican candidate for U.S. Senate in Wisconsin. It’s where Hovde was born and raised — though, save for an unsuccessful Senate run in 2012, he’s been pretty scarce there the past several years.

Hovde’s opponent is Democrat Tammy Baldwin, who’s running for a third term and starts as a favorite — though not an overwhelming one — to win reelection. In recent years, Wisconsin has replaced Florida as perhaps the most competitive swing state in America.

“We’re deeply polarized by party,” said Charles Franklin, a pollster at Wisconsin’s Marquette University, who notes several contests have been decided in the last decade by exceedingly close margins.

It’s vital for Democrats to hold onto Baldwin’s seat in November if they stand any chance of keeping their bare Senate majority. So naturally they’ve sought to turn Hovde’s California ties into a major campaign issue.

They’ve posted billboards and created a website linking Hovde, or, rather, “California bank owner Eric Hovde (R-Laguna Beach),” to a luxe life of champagne and pleasure. A TV spot — crashing surf, sparkling wine and, of course, palm trees — ends with a rhetorical question: “Eric Hovde on Wisconsin’s side? Don’t bank on it.”

That attempt at California-shaming amounts to a role reversal of sorts. Typically, it’s Republicans in red states like Texas who wield the Golden State as a weapon, turning Gavin Newsom, Kamala Harris and Nancy Pelosi into demon figureheads.

However, it’s not the state’s left-leaning politicians that Democrats are trying to yoke around Hovde’s neck. Rather, they’re trying to raise doubts about his relatability.

“There are rich people in Wisconsin who have multiple homes, too,” said Lilly Goren, who teaches political science at Waukesha’s Carroll University. “But if you spend most of your time out in California where you don’t have to deal with snow and rain and sleet and it’s always sunny, we think you’re living a little bit of a different life.”

Hovde insists he’s a Wisconsinite down to the tips of his toes, which he sank not long ago into Madison’s frozen Lake Mendota. (Actually, he plunged in chest-deep.)

“So the Dems and Sen. Baldwin keep saying I’m not from Wisconsin, which is a complete joke,” a shirtless Hovde said, mid-dip, in a social media post that has been viewed more than 1 million times.

”!!Warning,” the post reads. “Not safe for Californians and career politicians!!”

Brrr.

In an interview last year with the Milwaukee Journal Sentinel, before Hovde launched his candidacy, he “guffawed with amusement” when asked if he was spending the bulk of his time in California or Wisconsin.

“I’m born in Wisconsin, raised in Wisconsin and graduated from the University of Wisconsin,” Hovde told the newspaper. “My home is Wisconsin. I have a business in Wisconsin. So that’s my response.”

The business, Hovde Properties, is a Madison-based real estate company founded by his grandfather. Hovde is also chairman and CEO of Irvine-based H Bancorp and its chief subsidiary, Sunwest Bank.

Since entering the race, Hovde has adopted a nothing-to-see-here approach to questions about his residency — even as he immerses in ice water and exults over the “fantastic fun” of ax-throwing, another moment shared on social media, as a way of bolstering his Badger State bona fides.

Lately, however, the California question has been overshadowed by remarks Hovde made about older voters, who happen to make up a sizable chunk of Wisconsin’s electorate. (A quarter of residents are 60 or older; nearly 1 in 5 are 65 and up.)

Hinting at irregularities in the 2020 election — which seems to be the price of admission to the GOP these days — Hovde repeated bogus claims of widespread voting fraud at Wisconsin nursing homes. In doing so, he questioned the capacity of elderly residents to coherently cast their ballot.

“If you’re in a nursing home, you only have a five-, six-month life expectancy,” Hovde said in a talk-radio interview. “Almost nobody in a nursing home is at a point to vote.”

Which is one way to address the Democratic advantage among seniors — you could simply disenfranchise them — though, for the record, Hovde later clarified his statement by saying, “I think elderly absolutely should vote.”

Unfortunately for Hovde, even as he worked to clean up that political mess, Sunwest Bank was named as co-defendant in a wrongful-death lawsuit targeting a Southern California senior living facility that the bank partly owns. A Hovde spokesperson said neither the bank nor Hovde were involved in the facility’s day-to-day operations.

All in all, that’s made for pretty rough going for Hovde, though there is some consolation should his Senate bid fall short. He still has that mansion awaiting him back in Laguna Beach.

Happy to troll Hovde, Wisconsin’s Democratic Party rounded up cast members of the “Real Housewives of Orange County,” who sent their best wishes in a video and said they dearly miss their sometime-neighbor.

“Cannot wait, just like your friends, for you to come back,” said cast member Gina Kirschenheiter.

“Be back safe, enjoy your journey,” said Vicki Gunvalson, the self-proclaimed “OG of the OC.” Blowing a kiss, she added, “Don’t forget to whoop it while you’re in Wisconsin. Have some cheese curds.”

Which just goes to show, the stereotypes and trash-talking run both ways.

Politics

Trump demands Biden 'drug test,' rips 'radical' RFK Jr. in bid to 'rebellious bunch' at NRA

Published

11 hours ago

May 18, 2024

Press Room

Trump demands Biden 'drug test,' rips 'radical' RFK Jr. in bid to 'rebellious bunch' at NRA

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Former President Trump fired up supporters at the National Rifle Association’s Annual Meeting in Texas on Saturday, calling for President Biden to take a “drug test,” putting “radical” Robert F. Kennedy Jr. on blast and encouraging gun enthusiasts to get out and vote.

The crowd at the Kay Bailey Hutchison Convention Center in Dallas roared as Trump received the NRA’s endorsement before he took the stage.

Trump thanked the “great patriots” for the endorsements, but reprimanded the “rebellious bunch” for not voting.

“But one thing I’ll say, and I say it as friends, we’ve got to get gun owners to vote because you know what? I don’t know what it is. Perhaps it’s a form of rebellion because you’re a rebellious people, aren’t you?,” Trump said. “But gun owners don’t vote. What is that all about?”

“If gun owners would vote, we would swamp them at levels that nobody’s ever seen before,” he said. “So, I think you’re a rebellious bunch. So let’s be rebellious and vote this time.”

BIDEN CAMPAIGN HIGH ON DOJ’S MARIJUANA SHIFT, ‘SMOKES’ TRUMP FOR INACTION DURING HIS TERM

Former President Donald Trump speaks during the NRA ILA Leadership Forum at the National Rifle Association (NRA) Annual Meeting & Exhibits at the Kay Bailey Hutchison Convention Center, Saturday, in Dallas. (Justin Sullivan/Getty Images)

Former U.S. President Donald Trump speaks

The NRA endorsed former President Trump on Saturday. (Justin Sullivan/Getty Images)

‘Radical’ RFK Jr.

Trump turned his attention to Independent presidential candidate Robert F. Kennedy Jr., telling NRA-supporters to not “waste your vote” and that he is a part of the “radical left.”

“RFK, Jr. — I call him Junior by the way — he’s radical left. Don’t think about it. Don’t waste your vote,” Trump said. “We need a conservative person with common sense. This guy is radical left who destroyed New York.”

“Actually, he’s a disaster. He reminds you of this fly that’s driving me crazy up here,” said Trump, who swatted at a fly that flitted around the stage. “This fly is brutal. I don’t like flies!”

Former President Donald Trump blasted Robert F. Kennedy Jr. as a “disaster” and part of the “radical left.” (Getty Images)

Trump said that RFK Jr. had “no policy for anything.”

“But RFK Jr. calls you a terrorist group. You know, he calls you a terrorist group,” Trump said. “[You] can’t vote for him. You can’t. You know, somebody said, well, they like his policy on vaccines the other day. He said, no, no, he’ll go for the vaccine. He’s nice. He’s got no policy or anything. He’s radical left. He always has been.”

“We can’t waste any votes,” he added. “We have to make sure we win.”

Former President Trump said that President Biden was as “high as a kite” during his State of the Union address in March. (Jacquelyn Martin/AP/Bloomberg via Getty Images)

‘High as a kite’

The Republican Party’s presumptive presidential nominee set his sights on President Biden, beginning with the usual jabs at Biden’s cognitive ability, and saying that Biden was as “high as a kite” during his State of the Union address in March.

WARNING SIGNS FOR TRUMP, BIDEN, AS THEY CAREEN TOWARD DEBATES

“Now, he did that State of the Union the other day. He was high as a kite,” Trump said. “So, I think we should go for drug tests on the debate. Yeah, we’re going to call for drug tests.”

Former President Trump speaks during the NRA ILA Leadership Forum at the National Rifle Association (NRA) Annual Meeting in Dallas on Saturday. (Justin Sullivan/Getty Images)

Earlier Saturday, Trump’s campaign and the Republican National Committee announced the creation of a new “Gun Owners for Trump” coalition that includes gun rights activists and individuals in the firearms’ industry.

Get the latest updates from the 2024 campaign trail, exclusive interviews and more at our Fox News Digital election hub.