Bond financing vs. taxes

Your editorial questioned Phil Angelides’ plan to raise $5 billion in taxes on corporations and the wealthy in order to fund specific programs (“Why new taxes, Mr. Angelides?” June 9). Why did you fail to note that Schwarzenegger raised taxes by $15 billion through Proposition 57? The Prop 57 debt bond carries less fiscal responsibility and additional costs in debt servicing — qualities that always make taxes the braver choice.

People understand “tax,” but few people understand “debt bond.” Taxes and debt bonds both raise fungible revenue — increasing a budget in one place relieves pressure elsewhere. But taxes can be targeted, as with Angelides’ proposal. Debt bonds are regressive as they affect the general fund. Taxes require politicians’ vote accountability, but bonds don’t. True fiscal conservatives and those who understand government decry the false political cover of debt bonds and laud the honesty of tax proposals.

Jason Jungreis

The City

While California today is benefiting from a growing economy, that will not always be the case. Boom-and-bust spending habits are one of the primary reasons we are straddled with shrinking funds for vital programs that foster growth and development, causing us to take on further debt in the form of bonds.

A long-term approach to steady, managed growth and spending would enable us to avoid declaring fiscal emergencies, borrowing at substantially higher rates and taking longer to repay the deficit. Whether it is man-made or a natural economic disaster, we must not sell ourselves short by thinking the tax revenue of today will insulate us from future downturns. Windfalls should be either earmarked for a rainy-day fund or used to pay down the already existing deficit.

Joey Moyzis

The City

Assembly race not over

Your post-Election Day headline read, “Ma beats Reilly for Assembly; S.F. Supervisor moves on to Sacramento.”

Not so fast. The general election is still ahead in November, and I dare say her Green Party challenger, Barry Hermanson, better reflects District 12 than Fiona Ma does. Hermanson is a Sunset District homeowner and long-time small businessman. He is well-known in activist circles for his support of increases in the local and statewide minimum wage. Moreover, Hermanson opposes the death penalty — unlike Ma. Hermanson also opposes the Ellis Act — unlike Ma.

In addition, Hermanson knows what Community Choice Aggregation is, supports it, and has the endorsement of the Sierra Club — unlike Ma.

I look forward to being represented by Assemblyman Hermanson in Sacramento, starting in 2007.

Sue Vaughan

The City

Immigration and free markets

Forty years ago, truck, rail, air and coach all operated under government-sanctioned monopolies. The public picked up the tab in higher prices, shoddy product and little consumer choice. Deregulation ended that.

Something similar is happening today with our free-market, global economy. The general good is advanced as a greater number of producers come to market with the product. Of course, there will be those who fear change, or lose advantage with change.

If Mexican citizens come to the U.S. willing to work for less, then perhaps we are looking at a work ethic born of poverty. Maybe, too, there is a premium paid on U.S. dollars spent in Mexico.

Our economic future doesn’t lie in government sanctions and guarantees. Nor do we benefit from beating up capitalists who respond to market conditions. Rather, we need to recognize that there are a lot of hungry, motivated people who see poverty and idleness as the alternative to not taking the work.

If America is going to compete with that kind of motivation, we had better stop thinking that we are entitled.

Paul Burton

The City

All-night BART

Recently BART chose to operate on a 24-hour basis to alleviate the congestion created by the retrofit of the Bay Bridge. The numbers posted as to ridership increases during this time would indicate that if BART were to operate on a 24-hour basis and 7 days a week, the ridership would be even greater because there would be a sense of reliability.

It is my assumption that many who presently drive do so because they cannot be certain their business at the other end of the trip will be completed before train service is curtailed for the night. This is at least food for thought.

William J. Coburn

The City