Taxpayer Deception Act knocked off ballot

By Sheri Williams

The state Supreme Court in June blocked an initiative aimed for the November ballot that would have made it harder to raise state and local taxes, a position backed by businesses and other groups that often oppose housing and social service measures.

The justices ruled that the so-called Taxpayer Protection Act—which Labor called the Taxpayer Deception Act—would require a change to the state constitution, and is more than the amendment that its backers claim.

“The measure would fundamentally restructure the most basic of governmental powers,” the justices wrote. “The TPA would exclude the levying of new taxes from the Legislature’s control by requiring voter approval of all such measures. … No speculation regarding potential future consequences is needed to conclude that the TPA is a revision on its face.”

“We applaud the Supreme Court’s decision to remove the Taxpayer Deception Act from the ballot. This unconstitutional measure was another cynical and self-serving effort by corporate interests to put their greed ahead of the needs of all Californians,” said Lorena Gonzalez, principal officer of the California Labor Federation, AFL-CIO. “It would have threatened vital public services and infrastructure, undermined the democratic process and created chaos. The measure would have taken away the rights of local voters by making it harder for voters to pass measures their communities need, and prevented local voters from passing advisory measures dictating how we want our tax dollars spent. Today’s decision was a victory for working people.”

SEIU’s Tia Orr was more to the point. “I’m beyond excited!!!” she wrote on the social media site X. “Threat to destroy California w/ greed and hubris lost today.”

Members of the Service Employees International Union (SEIU) in California also enthusiastically applauded the California Supreme Court’s ruling that the Taxpayer Deception Act may not move forward on the November ballot.

David Huerta, President of SEIU California and SEIU United Service Workers West, said, “Today’s California Supreme Court ruling affirms what 700,000 SEIU members in California have long known: the Taxpayer Deception Act was a flagrant attempt by a few extremely wealthy real estate developers to undermine our entire democratic system and our voice as voters and devastate the vital services Californians rely on—all to avoid paying their fair share.

He added, that, “We commend Governor Newsom and legislative leaders for standing up for our communities and the rule of law by challenging this corporate attack on our Constitution in court. Today’s ruling is a strong warning to corporate interests that even those with the fattest pocketbooks will be held accountable to follow our laws.

“SEIU members will never stop fighting for our vision of a just and equal California, where worker strength fuels real, sustainable, and broadly shared economic growth and prosperity, a strong safety net gives every child and family an opportunity to thrive, and everyone contributes their fair share for the services our communities rely upon.”

The ruling was also lauded by environmental groups.

“The California Supreme Court recognizes the Taxpayer Deception Act for what it is: an illegal revision of the constitution backed by powerful interests looking to evade their fair share of taxes,” said Mike Young, Senior Political and Organizing Director, California Environmental Voters. “It would have severely hamstrung our ability to invest in climate action by crippling essential government funding. Defeating the efforts of businesses aligned with Big Oil is essential to continuing to make critical investments in climate justice. The Court’s decision to remove it from the ballot preserves our state’s commitment to addressing climate change, maintaining California’s ability to prioritize the well-being of future generations over the interests of powerful corporations and ensuring continued progress in our fight against the climate crisis.”

Only days earlier, Labor had another ballot victory when business and labor leaders agreed to reform the Private Attorneys General Act. That compromise will remove another contentious anti-labor initiative from the November ballot.