Part 1: The Golden Era

Once upon a time there was a great state called California. It was filled with natural beauty, beautiful beaches, acres of orange groves and forests with magnificent

redwoods. The sun never stops shining in the great state.

People from all over came to California to experience its beauty and hope. Smart government created jobs, built roads and a world-class free education. Because of

smart government’s investment in its people, California became a land where dreams came true.

Part 2: Seeds of the revolt

In the 60s and 70s change was afoot. . Protests swept the nation as people of color, women and students fought for justice, a better quality of life and for peace, not

war. People kept coming to California, a beacon of hope, to realize their dreams. Between 1950 and 1970, the population doubled. The face of California was

changing as more people of color moved to the great state. Some people accused smart government of being a “welfare state.”

By the 1970’s, California was an expensive place to live. People couldn’t afford to buy houses. Unregulated tax assessors began doubling or even tripling tax bills to

make more money. Homeowners saw their property taxes rise overnight. Local government was slow to fix the problem. Across the state, homeowners grew

angrier and angrier.

Part 3: A wolf in sheep’s clothing

In 1978, a a lobbyist for landlords named Howard Jarvis, wanted lower taxes for businesses and to shrink smart government, which he called the “welfare state.”

He took advantage of the anger that homeowners felt, and began an Anti-Tax campaign. He launched Prop 13, which capped property taxes and made it nearly impossible to raise money for government . Landlord associations and real estate corporations backed prop 13 with $1.6 million. Voters across California, scared by

the changes they saw and angry about feeling squeezed, turned out in great numbers to vote yes. Once it passed, homeowners were happy because they

thought it would bring an end to their problems .

Business Bonanza: Saving in Property Tax Standard Oil of CA $47 million Shell Oil $16 million Getty Oil $12.3 million Arco $10 million Bank of America $7.2 million Wells Fargo $1.2 million

Proposition 13 protected a generation of homeowners. But even happier were business property owners. They saw an immediate $3.5 billion drop in their taxes as a result of proposition13 passing. The money they invested to support the initiative paid off.

Part 4: The real winners

Taxes paid last year = $0

Wall  St  Banks  and  Corpora0on  Avoid  

Paying  Taxes  

Top 6 Banks Average Tax Rate

in 2010 - 11%

Part 4: Unforseen Consequences

Since the proposition put a cap on property taxes, government was unable to invest in all Califonian’s Dreams.

After 15 years, half of the state’s county hospitals closed. The public school

system that was once the envy of the world dropped to the bottom of the ranks. Roads began to deteriorate. Everyone was worried that the great state was fast

heading in the wrong direction. The people most impacted were those who needed smart government to achieve their California Dream – everyone but the very rich.

Part 5: Grinding Halt

Prop 13 required a 2/3s vote to raise state revenue. This allowed a small minority of anti-tax legislators to block new money from being collected for smart government. The legislature couldn’t

raise more money for schools, roads and hospitals. Government in the great state was not able to work anymore.

Part 6: Grasping for straws

Once government stopped working, people in the great state decided to take matters in their own hands. They started collecting signatures

in front of stores and throughout their neighborhoods to pass bonds and borrow

money for programs that they cared about like housing, libraries, and schools. Many of these

initiatives passed, and government got money to keep some programs running, but its debt grew to $100 billion. The Anti-Tax leaders continued to wage initiatives that made sure that the little

money government had didn’t benefit people of color and immigrants. People grew confused,

angry at each other, and disenchanted with government as they saw their dreams slip

farther away.

Part. 6. HOPE

In March 2011 the people came together across Los Angeles to do something about the problem. They thought it was time to tackle the problem that got them into the mess to begin with. It was time to fight back. We formed an organization called Good

Jobs LA made up of unions and organizations that represented poor people, the elderly, low-income families,

children and many more that were affected by the cuts. They made a commitment to restore democracy and make CA a

better place to live again.