California Proposes Sales Tax Hike To Fund Transport, Government Services July 18, 2008 11:32 a.m. ESTVittorio Hernandez - AHN News WriterSacramento, CA (AHN) - To close California's $17.2 billion budget deficit, Gov. Arnold Schwarzenegger considered on Thursday hiking the state sales tax and using funds intended for transportation and government services.State legislators proposed the two measures, which the governor initially described as bad ideas, but he did not rule out adopting the measures to avoid a cash crisis in California.The lawmakers plan to close the budget gap by collecting $5.6 billion income tax increase on the rich and borrowing $1.1...