Calif. lawmakers back tax hike, defy Schwarzenegger

Reuters ^ | January 17, 2004

[calcowgirl]

SAN FRANCISCO, Jan 17 (Reuters) - A California legislator proposing higher income taxes said on Saturday that half of her Democratic Assembly colleagues support her measure, setting up a fight with Gov. Arnold Schwarzenegger, who has ruled out tax increases to narrow the state's budget gap.

Assemblywoman Wilma Chan said 24 Assembly Democrats have signed on as co-authors of her bill to raise taxes on California's high-income earners, a measure introduced a week after the Republican governor unveiled his first budget proposal, a $99 billion plan with some $4.6 billion in spending cuts and no tax increases.

Democrats hold 48 of the California Assembly's 80 seats.

"We're facing a $15 billion deficit next year and the program cuts being discussed are devastating to children, college students, seniors and the poor," Chan, the Assembly's Democratic majority leader, said.

"This would raise $3 billion, which would really help with the situation," Chan said, adding she expects Democrats in the state Senate to also back higher taxes.

Her bill proposes lifting the income tax rate to 10 percent on individuals earning more than $136,000 a year after deductions, and to 11 percent on individuals earning more than $272,000 a year after deductions. California's top income tax rate now is 9.3 percent.

A Schwarzenegger aide who asked not to be named said the governor does not support higher taxes because they could deter business growth and job creation. His budget plan relies on spending cuts and a $15 billion bond that voters will be asked to approve on the March ballot.

[novacation]

it is always important for the dims to punish success.They are the party for the under class you know.

[Amerigomag]

You bet.

Let's give the most productive folks a good reason to leave the state.

We need to make room for more uneducated, unproductive, unregulated immigrants.

[John Jorsett]

Calif. lawmakers back tax hike, defy Schwarzenegger

Man, I never saw that coming ...

[sgtbono2002]

Nothing wilkl drive out high income earners as fast as taxing the heck out of them.

[Reagan Man]

Things are getting real interesting on the leftcoast.

And the Golden State remains in total budgetary meltdown.

[paul51]

adding she expects Democrats in the state Senate to also back higher taxes

That would be a shocking development /sarc

[Extremely Extreme Extremist]

I'm sure all the left-wing Hollywood actors and actresses don't mind having their taxes raised.

[maxwellp]

I'm not in California, but I supported Arnold for the simple fact that he earned his money. He's not a career politician, paid by the taxpayers and spending money, that is not theirs, in every crazy fashion they can think of. My family needs our earned money for our necessities and we don't live elaborately at all. Thank God for President Bush and his tax cut.

[Myrddin]

I did a quick comparison of 2003 state income tax for California vs Idaho. It was just against my gross earnings and did not take into account any deductions. Idaho will take $1100 more in 2003 than California. This proposed tax increase would put the two states about even.

What isn't even is cost of living. California is twice as expensive for overall cost of living compared to Idaho. It must be all the illegal aliens and extended time to yourself commuting to/from work that pushes of the costs.

[Ernest_at_the_Beach]

Well, things are becoming clearer!

The spenders want to spend, the cutters want to cut.

And the middle ground seems to be , lets borrow!

[calcowgirl]

The spenders want to spend, the cutters want to cut.
And the middle ground seems to be , lets borrow!

Libs want to spend... conservatives want cuts/no new taxes... middle ground is borrow.
Push the problem into the future for the next generation to worry about.
Sickening.

[SierraWasp]

The worst part is everybody is in denial as to how bad the situation really is and how desparately we need leadership that like Churchill, will actually bite the bullet!!!

[Ernest_at_the_Beach]

Talk about denial, see this and Willie G's comments:

Proposals renew debate over state's electricity future

[goldstategop]

Its DOA. It needs GOP votes and no Republican will vote for a tax increase.