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State Controller Candidate John Chiang is "Victim of Political Drive-by Shooting" Says Speaker of the Assembly: Read the Facts Behind This Charge, It May Affect Your Vote.

Make sure you pay attention to this low visibility but important state office and that of the Lieutenant Governor's office which is also involved. Your vigilance is the only way tax cheats and other special interests will not control the outcome of these races.

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By Frank D. Russo

John Chiang, the Democratic candidate for California State Controller has received some good news and some bad news in the last couple of days. A dedicated public servant, the good news is that he received a ringing endorsement from the Los Angeles Times this morning, which said:

He chairs the state Board of Equalization, a post that steeps him in tax and financial policy. He has done a good job of going after tax cheats, while also reaching out to businesses to make sure they know how to comply with the law and aren't needlessly overpaying.
The bad news is that a group of powerful special interests, who would not responded to press inquiries and who operate in secrecy, have decided at this last minute to spend millions in effort to defeat him in "independent expenditures." In what is normally a low visibility race with candidates not able to buy television ads, software company Intuit deposited $1,000,000 into the account of a group called “Alliance for California’s Tomorrow.” At the same time this group announced that they would begin running TV ads to defeat Chiang and elect Republican Tony Strickland. Intuit, the owner of the software program TurboTax, vehemently opposes John Chiang’s efforts to make free software available from the state for those who want to pay their taxes online.

This shadowy group, the Alliance for a California’s Tomorrow has also received large contributions from tobacco, HMO, insurance and billboard companies.

But there's even more to this than the naked self interest of Intuit, and their fellow travelers. There are more millions of dollars from special interests involved. It gets even worse. Take a look at the LA Times article today, "Money floods race for controller: Tribes and a software giant, Intuit, roil the placid campaign with $1-million donations to groups helping the GOP's Strickland."

Independent Expenditure campaigns that have raised over $10 million in the past couple of days have begun spending this money in an effort not only to defeat John Chiang and elect a compliant Tony Strickland, but also to defeat John Garamendi who is running for Lieutenant Governor and elect ultra conservative Tom McClintock to that post. They don't care about what this will do in many important policy areas that these posts deal with, often unseen by the average Californian. They are just trying to buy the best officeholders money can buy.

Another IE committee, Team 2006 funded by $9.1 million in contributions from casino-owning Native American Tribes, disclosed yesterday that they had begun buying TV time to defeat Chiang. Their initial purchase was for $917,000. These tribes have substantial tax issues that come before the Board of Equalization and the Franchise Tax Board. The Controller sits as the swing vote on both of these tax policy boards.

“The Controller is California’s fiscal watchdog,” stated Chiang’s consultant Parke Skelton, “But we have wealthy special interests that want to put a muzzle on that watchdog. California needs an independent Controller who will fight for California’s families.”

“It is truly appalling that a couple of wealthy groups can, in a day, pump much more money into this critical race than both of the candidates have raised in over two years of work,” Skelton concluded.

The Times reports in that article that:

The same tribes have spent $122,000 boosting Strickland's wife, Assemblywoman Audra Strickland (R-Thousand Oaks), although she is in a safe GOP district. Both husband and wife have been reliable votes for tribal casino interests.
They also reveal the following:
The tribes and Intuit each have one reason to support the GOP nominee: taxes.

The state controller sits on the Franchise Tax Board, a three-member panel that oversees state income tax policy. But the controller's influence over tax policy goes beyond that post.

The controller also serves on the five-member Board of Equalization, which oversees sales and property tax issues. Additionally, the controller votes for that board's chairman, who also sits on the Franchise Tax Board. Whoever wins the controller's race Nov. 7 will determine whether Democrats or Republicans control the boards.

Intuit has inserted itself into the controller's campaign as part of its fight to block the Franchise Tax Board from simplifying the state income tax filing process. From his post on the Board of Equalization, Chiang embraced "ReadyReturn," a program designed to remove some of the agony of tax season by having the government complete low-income Californians' tax returns.

The program alarms Intuit. If it were to be fully implemented, ReadyReturn could threaten sales of one of the company's most successful software programs: TurboTax. Facing a fierce lobbying effort by Intuit, the Legislature this year blocked the state from spending money on ReadyReturn.

Neither Chiang nor Garamendi voted on or had anything public to say about the massive tribal gaming pacts that Republicans tried to shove through the legislature at the last minute at the end of the session. You can read about the politics of the end of session where Republicans attempted to pass the largest expansion of casinos in California and perhaps United States history without a public hearing on most of them.

The Times concludes their article:

By siding with Strickland and against Democrat Chiang, political experts believe, the tribes are taking a backhanded swipe at Assembly Democrats. Gov. Arnold Schwarzenegger, a Republican, negotiated compacts for major expansions of the tribes' gambling operations. Assembly Democrats blocked the deals in August; Chiang had no role in the action.

"If the intent is to send a message to me, it is a damned weird way of doing it," Assembly Speaker Fabian Nuñez (D-Los Angeles) said Wednesday. "This is a political drive-by shooting. The guy did nothing to hurt them."


If there is a payback here, the voters should deliver one and elect two reformers: Chiang Controller and Garamendi Lieutenant Governor. Don't let them be the victim of this last minute shooting.

Posted on October 26, 2006

Comments

The Coalition of Asian Pacific Americans is asking consumers to stop buying Quicken software and other products made by Intuit in response to the company's attempt to buy an election away John Chiang.

CAPA is asking people to send pledges to boycott Intuit products via email or fax to co-founder and executive committee chairman Scott Cook, president and CEO Steve Bennett and chairman Bill Campbell. Their email addresses and phone numbers are listed on our blog at blog.capaweb.org.

"Boycott new purchases of Quicken, QuickBooks and TurboTax if you're against blatantly buying candidates to increase corporate wealth," said Dale Minami, president of CAPA.

Posted by: CAPA at October 31, 2006 05:36 PM

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