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Voters consider transit sales tax
Top sales tax rate in Alameda County could increase to 11.25%
With ballots hitting the mail statewide, it’s an appropriate time to reflect on the contrast between election practices here and nationally.
To start, Gov. Gavin Newsom took advantage of his extended Covid 19 lockdown to mail ballots to every registered voter. He’s continued that is subsequent elections. That, of course, presumes accurate voter rolls. A youth pastor who lived in our home for a couple of years and departed in 2012 is still receiving all election material.
The state also allows ballot harvesting—a practice that is outright banned in other states and subject to prosecution.
California also automatically registers anyone who obtains a driver’s license. Gov. Jerry Brown signed the bill giving illegal aliens the opportunity to obtain licenses, arguing it would make the state’s roadways safer. When I, and others, have inquired of the Secretary of State’s office how she ensures that people being registered are actually citizens, we’ve received no response. Presumably that speaks to no plan and flooding the polls with non-citizens. Some cities also allow aliens to vote in local elections.
You may have read about the tragic fatal accidents involving illegal aliens with weak to no language skills who somehow have obtained California licenses to drive 18-wheelers.
That brings us to Prop. 39 on the current ballot that would require voter ID at the polls. As the pro-advertisements note, it is overwhelmingly supported by members of both parties and independents as well as all ethnic groups—each with 70% or more pluralities. Nationally, it’s equally supported, but the Democratic Party and its leaders are adamantly opposed. That’s no surprise—voter ID takes some maneuvers out of their playbook.
The ballot also contains yet another extension—this time a permanent one—on what Gov. Brown sold as a tax increase on wealthy people with a sunset provision when he inherited a budget crisis in 2012. It’s been extended once and now the state teachers union and other unions want to keep it going with Proposition 3. The state has the highest income tax rate in the country at 13.3% on top of a 37% top federal rate.
We pay the most and arguably receive the worst services.
Throw in the special “one-time tax” proposed on billionaires by Prop. 40 and you have to wonder why wealthy folks continue to live in the state vs. states like Florida and Texas that have no state income tax.
The Regional Measure M will be interesting to see how it goes with the sales tax increase to support public transit. It’s a one-cent hike in San Francisco and ½-cent in other counties that pay most of the freight for BART already through bridge fares. In Alameda County, where top sales tax rates already are 10.75%, it would be another regressive increase for poorer people. The offsetting argument is that these are the folks who use public transportation the most and would suffer from service cuts.
Sadly, during these discussions, I haven’t seen or heard any elected leader talk about the high compensation and benefits for those employed by the various systems. BART station agents or train operators can get those jobs with just a high school education.
The choice of sales tax and using an initiative process to qualify it allows it to pass with just 50% instead of the two-thirds required for other than school bond measures (55%).
Group of Pleasanton residents seeks stronger data privacy restrictions for fleet of robotsOctober 7, 2026 1:37 pm
Taxes cost tax payers money, interest on bonds cost tax payer money, which is the lessor of two evils, and which in the end result cost tax payer money. For taxpayers, a direct tax increase is almost always cheaper than financing the same project with bonds, because bonds force taxpayers to pay interest for 20–30 years, dramatically increasing the total cost. Taxes feel worse upfront, but bonds cost more in the long run.Why taxes cost less than bonds (for the same project.A tax increase raises money immediately. A bond raises money now, but taxpayers must repay taxes.
If a city needs $100 million:
Tax increase: Taxpayers pay $100 million (no interest).
Bond: Taxpayers pay $100 million + interest over 30 years. Typical municipal bond interest rates today: 4–5%. Over 30 years, that often doubles the cost.
A 30 year municipal bond at 4.5% interest: “Total repayment”≈2.1×”principal” , So a $100M project becomes: $100M” project”⇒$210M” taxpayer cost”
This aligns with the general insight from financial analyses: tax-exempt municipal bonds have lower yields than taxable bonds, but they still impose long-term interest costs on taxpayers .
Why governments prefer bonds even though they cost taxpayers more
Governments choose bonds because:
Bonds delay the tax increase (politically easier).
Bonds require only 55% voter approval in California (for school bonds).
The tax increase is hidden inside “debt service” language.
Property owners pay most of the cost, not renters.
This is why bonds are used even though they cost taxpayers more.
Which is the lesser of two evils?
Lesser evil (cheaper): Direct taxes
No interest
Lower total cost
Painful upfront but financially efficient
Greater evil (more expensive): Bonds
Interest payments for decades
Total cost often 2× the project cost
Politically easier but financially inefficient
Final answer
If the question is “Which costs taxpayers less money in the end?” → Taxes cost less. Bonds cost more.
If the question is “Which is politically easier to pass?” → Bonds.
According to the Tax Foundation and Census Bureau:
Average American pays ~$20,000–$23,000/year in total taxes
This includes federal, state, local, sales, gas, property, payroll, etc.
California average tax burden:
California residents pay ~$30,000–$33,000/year on average California is consistently ranked #1 or #2 highest-tax state.
Bay Area / Pleasanton homeowners:
Pleasanton homeowners typically pay $40,000–$55,000/year in total taxes.
Why so high?
High incomes → high federal + state tax
High property values → high property tax
Numerous school bonds
High sales tax
High gas tax
High vehicle fees
High utility surcharges