Domenic Moen
CCB
Persuasive Speech
Comm B1 TR 1:00 – 2 April 2009
Topic: Proposition 1A (pro)
Introduction
Attention Catcher: “The projected deficit in 2010-11 is $12.6 billion, growing to $26 billion
three years later. If voters reject Proposition 1A, the temporary tax increases approved last month
would expire sooner, adding billions of dollars to the projected shortfalls” (Sweeney).
Listener Relevance Link: This is important to all California residents because it affects our
taxes and the financial/economical situation that our state is in.
Thesis: I want to inform you of the benefits that would come if Proposition 1A passed, and
persuade you to vote YES for it.
Preview: I will tell you about:
1. The $16 billion tax increase that is involved with Proposition 1A.
2. The proposed spending cap that caps the amount the state can spend each year.
<Transition: Now that you know what I am going to be talking about, I would like to share with
you the benefits of what would happen if Proposition 1A passed. Let’s start with discussing the
$16 billion tax hike. >
Body
I. The $16 billion tax increase that is involved with Proposition 1A.
A. This tax increase is already in place.
1. If the bill were to pass, the taxes would remain increased for up to four years.
2. This would provide $22 billion to the state over the next four years (Sweeny).
3. If we don’t do raise the taxes we could expect to loose things.
a. “…any decrease in sales tax revenue would force an increase in either
state income or property taxes, or alternatively a cut in state-funded
services” (Freehan).
B. There are three taxes that would remain increased for up to four years.
1. A one percent increase in the state sales tax would occur.
a. This would take the state sales tax from 8% to 9%.
2. If Proposition 1A passed, the state’s vehicle license fee would nearly double
(Rau, Halper, and McGreevy).
3. And finally, a .25% increase in the state’s personal income tax on every bracket
would occur.
<Transition: Now that I have explained tax portion of Proposition 1A, I would like to talk about
the proposed spending cap for our state. >
II. The proposed spending cap that caps the amount the state can spend each year.
A. The spending cap is actually based on a system that guarantees success.
1. The limit is strictly based on revenue growth of the state over the previous tenyear period.
2. Any revenue from taxes that exceeds this limit would be saved in a “rainy day
fund.”
3. The “rainy day fund” would be capped at 12.5% of tax revenue.
4. Any revenue above that 12.5% limit could be used to pay debt, or for one time
only purposes.
5. If the proposition passes, starting in 2011 3% of the general fund revenue
would be placed in the “rainy day fund” each year.
B. There would be slight changes if Proposition 1B were to pass.
1. These changes include substituting an education fund for the “rainy day fund.”
2. “The budget battle will be fierce, with Democrats delaying work through the
summer. They'll put forward tax proposals already doomed to defeat, as they did
in March with the oil extraction tax increase. Though it won a 45 to 30 vote in the
Assembly, it still fell short of the two-thirds majority needed to approve tax
increases. Republican lawmakers won't budge on rejecting all tax hikes. They
figure voters will agree with them that the state spends too much. Democrats are
counting on a repeat of 1992, when they won seats in the legislature after refusing
to make reductions in education. They'll get most of Schwarzenegger's school
spending cuts restored. Odds are they'll gain the two-thirds majority they need in
2009. Democrats are only a few seats short of that in both chambers” (Kiplinger
Staff).
<Transition: Now that I have discussed the basics of Proposition 1A, I would like to summarize
and remind you of the benefits associated with the approval of Proposition 1A. >
Conclusion
Review: I have told you about:
1. The $16 billion tax increase that is involved with Proposition 1A.
2. The proposed spending cap that caps the amount the state can spend each year.
Restate Thesis: I want to inform you of the benefits that would come if Proposition 1A passed,
and persuade you to vote YES for it.
Clincher: So make sure to vote YES on Proposition 1A if you want to secure a safer financial
situation/economy for our great state!!!
Bibliography
Freehan, Joseph R. “Surfing Around the Sales Tax Byte: The Internet Tax Freedom Act, Sales
Tax Jurisdiction and the Role of Congress.” Albany Law Journal of Science &
Technology. 12 Alb. L.J. Sci. & Tech. 619 (2002).
Kiplinger California Letter Staff. “The fight over California's budget for 2009.” The Kiplinger
California Letter 44.6 (2008).
Rau, Jordan, Halper, Evan, and Patrick McGreevy. “With budget stalemate over, next move is
up to California voters.” Los Angeles Times 20 Feb. 2009.
Sweeney, James P. “State budget springs a leak: $8 billion hole opens as revenue falls short.”
Los Angeles Times 14 Mar. 2009.
Yamamura, Kevin, and Amy Chance. “California budget deal depends on voters' approvals.”
Los Angeles Times 14 Feb. 2009.