75,000 may lose jobs after huge tax-cut vote

Press, 9 June 1978, Page 6

75,000 may lose jobs after huge tax-cut vote

NZPA-Reuter Los Angeles ■ California has taken emergency steps to offset its taxpayers’ revolt, but State legislators have predicted as many as 75.000 Government employees may soon be out of work. By an overwhelming majority of nearly two to one. Californians voted on Tuesday to cut their property taxes by $7 billion—the first step in an anti-tax crusade I which could sweep across I the country. The State Governor (Mr Jerrv Brown) yesterday called a joint session of the State Legislature to outline ! his plans to cope with the I cut. Mr Brown, a potential Democratic Presidential candidate, had just won his party’s nomination for another term as Governor. Mr Browm signed an ex- ; ecutive order, which came I into effect yesterday, freezing State jobs at their present levels. He had opposed the tax reform measure, but said he would act immediately to implement it. “No area" will be; spared from cuts in State' spending,” he said. About 29,000 school; teachers and other Education ;Department workers in the; State have already been I warned they will lose their ■jobs. The Mayor of Los Angeles (Mr Tom Bradley), another opponent of the tax reform,! said the City would have to lay off more than 8000 workers, including 1000 policemen. The State Assembly Speaker (Mr Leo McCarthy) told reporters the tax reform could lead to laying off as many as 75,000 workers. Other politicians said they ! believed that was a conservative figure. I Some supporters of the ;tax reform claim its opponents are exaggerating the [cuts that are needed by ’ plunging the knife into essenI tial services. They believe any cuts should be made by “cutting the fat out of Gov-i ernment,” such as reducing welfare payments in certain! cases. Howard Jarvis, the million-! aire anti-tax crusader who led the fight to have the re-! form measure placed on the State ballot, said the pre-j dieted lay-offs in public offices would boost Cali-i fomia’s economy. He said that he had received invitations from or-ii

s ganisations in several States to discuss tax reform. He dismissed warnings that - the ultimate result would - be thousands of schools teachers, policemen, fir-men. t and other State workers out t of jobs for lack of funds. He said the reduced level -iof taxation would be sufti- . Cient to pay for “property- -: related services.” such as / I policemen and firemen. “The t| Constitution talks about the ;l rights of life, liberty, and 5) property, not food stamps, , illegal aliens, and welfare,” r! he said. '! “This is a taxpayers’ re>i volt. Our task is to spread j| the gospel through the couu-; ! try.” The California voters’ big; ; yes for the tax cut proposal ; . gave impetus to similar! . campaigns in seven other' . States: Ohio, Montana, Mich-! igan, Nebraska, Idaho, Penn- 1 sylvania, and Oregon. . In tw'O Ohio cities — ! Cleveland and Columbus —I . voters on Tuesday refused to; approve increases in school I taxes in spite of warnings l . that schooling could be seriously disrupted. . At the White House, Pres !lident Carter and Congres-1 I sional leaders met to discuss i I the vote’s implications. The National League of J Cities a big urban group, said it would form a task [(force to fight the spread of, the tax revolt. Gordon Tucker, chairman of United Homeowners of ; America, based in Montgom-} e. - y, Alabama, said the Cal-i 1 ifornia vote was “but the I 1 opening gun in the here-! 1 tofdre silent revolution l which we predict will be as; far-reaching as the revolu-1 tion that created this nation 200 years ago. “It puts on notice all the drones and freeloaders and politicians who have lived at the expense of the honest, ; hard-working citizens of this nation that the day of the best fruits of this land going ; to those who deserve it least; is just about over.” Politicians were quick to! seize the issue. Lee Dreyfus, a Republican' I candidate for Governor ini Wisconsin, called the vote a J (“twentieth century (Boston) | tea party.” and proposed a I “responsible Wisconsin equivalent.” I In Texas, the Republican chairman (Mr Ray Barnhart), i said: “Tax limitation is truly . an idea w hose time has J jeome. The message from the | 'grassroots is loud and clear: Government is too big and , Taxes are too high.”