pp1 179
pp1 179
pp1 179
The force that through the green fuse drives the flower
Drives my green age -Dylan Thomas
Cultivation:
Humboldt County to Hold Their Government Accountable for ‘Illegal’ Tax Changes
The Cannabis Market crash in Humboldt County isn’t the only element distressing
farmers this year. In addition to plummeting per pound-prices, exponential influx of
costs, looming abatement letter risks and the like, farmers attempting to navigate the
legalization process are being hit especially hard with yearly Measure S tax bills. So
much so that a group formed in direct response to speak to the Board of Supervisors Year of The Dog
in the February 13th meeting.
• Reduced taxes on 2018 Interim Permits. legitimate fear of inflation. The stock market panicked largely because CEOs and shareholders
fear that they’re losing their upper hand over a workforce that’s cutting increasingly into their
• Consider developing a system for rebates or deferred tax payment plans record profits.
targeting small growers. And if inflation is coming, then the Federal Reserve is likely to raise interest rates to slow
• Find a mechanism to cost-effectively leverage enforcement of the ~8,000 down the economy and cool off the inflation. When the Fed raises interest rates, bonds
become more attractive, so people move money from stocks to bonds — and the stock
non-applicants without relying on small farmers taxes. market dives. It becomes harder to borrow, so businesses and homeowners have less capital
• Work to streamline the compliance process for those small farms where to throw around. Profits get squeezed by high-interest payments. And as interest rates rise,
the value of older bonds, which pay out a lower interest rate, goes down. So people are losing
environmental degradation is NOT occurring.” money all over the place. All because wages started to go up.
Imagine you are a cannabis farmer, one who stood in line at the Planning Department Everything in the structure of the economy, then, is geared toward making sure that wages
to get a permit December 29, to get in front of the “good-standing” line for the State never rise. And for nearly half a century, this task has been accomplished. Wages haven’t
permits as you were told to by the County. Imagine you also headed the warnings of budged since the 1970s.
the Sheriffs, Planning Department, and additional County staff and did not cultivate Capitalism’s “reserve army” of the unemployed has its ranks bolstered by a mechanism known
that year. Or picture you are a lawyer who advised their clients about liability of the as the “inflation target” or the “inflation objective.” The Fed currently sets the target at 2
tax and to make legally binding contracts with cultivators who rented their property. percent, meaning that it doesn’t want to see inflation higher or lower than that. What it really
means is that it doesn’t want to see inflation higher than that, as the economy hasn’t hit the 2
Well this is the case for several handfuls of folks in Humboldt County who are
percent target in years.
coming together to hold the BOS and County Counsel accountable for their rewriting
But the target itself has meaning, since any little sign of wage growth is taken to mean that
of the “Commercial Marijuana Cultivation Tax” a one of a kind agricultural excise tax
inflation is around the bend, so the Fed taps the brakes to keep everything under that target.
passed in November 2016 with 64.5 % approval.
When the Fed hits the brakes, people lose their jobs. That’s not an unfortunate side effect of
Now in a dark eerie jam-packed dry room of uncertainty, there just may be tricomes tighter monetary policy — it is the intended effect. But the 2 percent target, argue people who
glistening with hope, as local renowned Environmental and Cannabis advocate and want to see real full employment, is too low. The Fed is throwing people out of work
Attorney Eugene Denson, is hoping to help save the livelihoods for many local unnecessarily — or, at least, for no sound economic reason. ExFedChair Janet Yellen said that
cultivators by bringing a Law Suit against the County. the decision the Fed made in 2012 — before she was Fed chair — may have been the right one
at the time, but evidence since then suggests the rate could be set higher.
The original text of the Measure was added December 13 2016, becoming
In Europe, central bankers have in recent years become more blatant about their role.
Ordinance 2567 in the County Code. Then June 6, 2017 a new ordinance “2575” was The European Central Bank has even started to use a different, most honest term: the
approved by the Humboldt County BOS which modified the original text of Measure Non-Accelerating Wage Rate of Unemployment. In practice, they tend to mean the same thing
S Tax. — that only so many people can be employed before inflation rises, and the job of a central
Denson first noticed the text incongruities, and sent a letter to the County of bank is to find and maintain the magic balance of unemployment and interest rates which fall
disproportionately on the more vulnerable workers — namely women and people of color —
Humboldt informing them of the “illegality” of the changes made January 9th 2018.
who constitute the vast majority of today’s working class.
Denson explains that the changes made “substantially altered the tax after it was
approved by voters” so the changes made by Humboldt County Supervisors are In 1979 then-Fed Chair Paul Volcker moved to explode the interest rate, in large part to
undermine what he and other monetary hawks saw as labor’s bloated bargaining power.
“illegal” because it violates Government Code 53723, “No local government, or
Volcker tamed inflation, triggered 2 recessions and paved the way for Reagan’s all-out assault
district, whether or not authorized to levy a property tax, may impose any general tax
on unions. So Carter, Volcker, and Reagan set out to suppress the power of organized labor.
unless and until such general tax is submitted to the electorate of the For that, they relied on a growing reserve army, created deliberately by government policy.
local government, or district and approved by a majority vote of the voters voting in
Like most economic policymaking, the job of the Fed is to adjudicate who gets to hold power
an election on the issue.”
in the economy and society writ large, ostensibly in the public interest. If the Fed raises
-Dream Tax Continues on Page 15 interest rates in the coming weeks and months, its answer will be clear.
Thanks to Kate Aronoff of The Intercept