Most people have no idea what the Board of Equalization does, and the few that do think its responsibilities stick to serving as an elected tax authority. Here, John Chiang, chair of the Board, explains how his office is working to help all Californians and to make the state a better place to live.

What does the Board of Equalization do?
We’re doing a lot of different things.  We administer and collect about $42 billion in sales, use, and special taxes that account for one-third of California’s budget, going to hundreds of state and local programs from education to environmental protection. We also ensure that people are treated fairly by county assessors and hear appeals from the Franchise Tax Board.  And we also provide free tax advice to individuals – we’ll even help them fill out their income tax forms. 

Why should people come to the Board instead of a tax agency for personal tax help?
Well, for one, we’re free. We offer several special programs on free services, assistance and advice on tax issues for individuals, non-profits, small businesses, and others. There’s only so much we can do because we’re a staff of 10 serving more than 8.5 million people in Los Angeles County, but we’re here as a service to the public.  

How does the help you provide affect people on a personal level?
We see a lot of people who are struggling, angry, and isolated when they contact our office.  We all know how complicated the tax laws are, and we have all heard the horror stories of overly aggressive tax collectors. When we help people with their tax issues, they realize that someone else cares for them and that the office exists for their benefit.  I think that can make a profound difference in how we all interact and get along.  

So what do you think is the Board’s primary job?
The way I see it, we have a greater responsibility to the people of the state than simply being number-crunching tax collectors.  Our job is to be responsive to the concerns and issues of all Californians, look for the solutions to improve the quality of life and lead this State in a direction that supports our economic vitality. 

Any specifics on how a tax authority can improve one’s quality of life?
After all the rain we just had, there are so many potholes on the roads. Some of the money we collect can go to the improving the roads. That sounds like a small role, but that’s just one part in providing a good standard of living here in California. We’re losing some of our best minds to places like North Carolina, Arizona, and Nevada. We have to maintain the standard of living so that people who will drive the economy stay here.  

How does education play into that?
I talk about education all the time because it’s central to driving our economy and our standard of living. If Californians are better educated, they are better equipped to lead successful lives. As a result, California’s economy prospers and so will our nation’s.  

California is facing some tough times financially. What do you think the future holds?
If you look at the demographics of our society with baby boomers retiring and a number of people struggling at the bottom, we have challenges in making sure our national and state budgets are balanced because there’s going to be a huge demand for medical, healthcare services, and transportation costs and needs.  Because those and other challenges carry astronomical costs, we will have a lot of tough decisions to make in the coming years. 

So what has to be done?
Our politicians in Sacramento must decide which public priorities are most important for the long term – not just how much to finance in various areas, but get down to specifics.  Politicians can’t just talk about the need to fund “education”; there must be a public debate about whether we are under-investing in classroom materials or language capabilities or some other specific area. Then we have to identify the revenues it would take to fulfill all those priorities.   

Is it just up to those in Sacramento?
Definitely not. I always make the appeal for more people to participate in our democracy. Whether you like it or not, everyone is impacted by decisions made by government, whether those decisions are made in Sacramento, Washington, D.C., or at your local city hall. If only 20 percent of the people participate, then you’re going to get a skewed democracy. Our leaders then make decisions based on that 20 percent, instead of the entire general public.  If you want the politicians in Sacramento to make decisions that reflect your priorities, then you have to participate in our democratic system.