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Arnold Schwarzenegger Tax Increase: Anatomy of a Broken Promise
Human Events Online ^ | 1/10/2007 | Assemblyman Chuck DeVore

Posted on 01/10/2007 10:13:59 AM PST by kellynla

California Gov. Arnold Schwarzenegger has unveiled his long-awaited universal healthcare plan. A centerpiece of that plan is a new 4% payroll tax on any business with 10 or more employees, as well as a 4% tax on hospitals and a 2% tax on doctors. This represents a clear and direct violation of the governor’s campaign pledge not to raise taxes.

Schwarzenegger’s staff is trying mightily to spin it otherwise, calling his tax hike ideas “fees” not taxes. This should be opposed for two reasons: the governor’s own claims during his campaign against Phil Angelides, and the California constitution’s protection against the Legislature raising taxes without a two-thirds vote of approval.

During Schwarzenegger’s re-election effort, he rightly lambasted Angelides for wanting to increase taxes. In a Los Angeles Times article dated Oct. 19, 2006, columnist George Skelton wrote that $7 billion of the $18 billion in claimed tax hikes hung around Angelides’ neck by Schwarzenegger were, in fact, employer mandates to provide health insurance. Angelides tried to deny it. And Skelton’s comments were echoed by numerous political writers and editorialists. All to no avail. Schwarzenegger called it a “tax” so it was a “tax.”

Now that Schwarzenegger is proposing an even larger plan than Angelides did to fund his universal health care plan, “taxes” have magically transformed themselves into “fees.” (I wonder if voodoo verbiage services will be covered under ArnoldCare?)

The other reason the difference between a “tax” and a “fee” matters has to do with the required vote thresholds in the Legislature. Tax increases need a two-thirds vote for approval, fees, only a simple majority. If the Schwarzenegger administration rams a majority vote “fee” increase through the Legislature with the help of Democrats, look for the Republicans to sue all the way to the state Supreme Court to protect taxpayer rights as well as the constitutionally protected right of the legislative minority to block all but the most widely agreed upon tax increases.

It stands to be a very interesting year in Sacramento.


TOPICS: Editorial; Government; News/Current Events; US: California
KEYWORDS: arnoldcare; chuckdevore; schwarzenegger
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Mr. DeVore (R.-Irvine) represents 450,000 people in coastal Orange County's 70th Assembly District. He also serves as a lieutenant colonel in the Army National Guard
1 posted on 01/10/2007 10:14:00 AM PST by kellynla
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To: starsandstrips; Rabid Dog; calcowgirl; Jim Robinson; Salvation; jam137; Ernest_at_the_Beach; ...

ping


2 posted on 01/10/2007 10:15:11 AM PST by kellynla (Freedom of speech makes it easier to spot the idiots! Semper Fi!)
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To: kellynla

OK I don't follow CA politics...... what has happened to Arnold?


3 posted on 01/10/2007 10:16:52 AM PST by Dog (DEMS--- 5 day work week..............errr...nevermind....100 hours...starting...soon .....MAYBE)
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To: kellynla
If it quacks like a duck and walks like a duck, its a duck. If it looks like a tax and works like a tax, its a tax. Arnold isn't fooling any one by calling his health care plan taxes "fees." Its gonna be an interesting year in Sacramento.

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus

4 posted on 01/10/2007 10:18:16 AM PST by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives In My Heart Forever)
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To: kellynla

It is to laugh . . . . . . to think that a politician - ANY politician - will adhere to his/her campaign promises.

I think Arnold started out sincerely trying to get the state's spending under control - and promptly had his head handed to him. Turns out that the voters didn't want spending on THEIR favorite pork scheme just, just everyone else's favorite pork scheme.


5 posted on 01/10/2007 10:19:58 AM PST by DustyMoment (FloriDUH - proud inventors of pregnant/hanging chads and judicide!!)
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To: kellynla
"calling his tax hike ideas “fees” not taxes."

Taxes are better than fees, because taxes are deductible for income tax purposes, while fees are not. Also, 4% sounds so very reasonable, but just like with workers fraudulation, ...er, I mean compensation, it started off reasonable and now is indescribably expensive since no one is interested in not spending an employer's money except the employer himself.
6 posted on 01/10/2007 10:24:04 AM PST by raftguide
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To: Dog
"happened?"

nothing has "happened!"

you vote for a RINO, you get a RINO!

I told FReepers in 2003 that this clown who was campaigning as a "fiscal conservative & a social liberal" was a FRAUD!

You can't be a "fiscal conservative" and a "social liberal" at the same time...ya gotta pay for the social programs some way, some how.

And what most people don't realize is that FEES have been going through the roof for the past three years. And RINOld's stem cell research bond issue is going to cost California taxpayers SIX BILLION DOLLARS TO PAY OFF! That is partly what is "happening."
7 posted on 01/10/2007 10:24:07 AM PST by kellynla (Freedom of speech makes it easier to spot the idiots! Semper Fi!)
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To: kellynla
Here's a link to an article by Arnold's finance director, explaining the twisted logic (I included links to an opposing article by Jon Coupal of the Howard Jarvis Taxpayers Association calling for "intellectual honesty.")
CA: Governor's Health Care Reforms Do Not Include A Tax Increase (The Gubs view)

8 posted on 01/10/2007 10:24:16 AM PST by calcowgirl ("Liberalism is just Communism sold by the drink." P. J. O'Rourke)
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To: goldstategop
"Its gonna be an interesting year in Sacramento."

No its not. The Dems control everything, so the only thing interesting is how much we have left each year when they get done.
9 posted on 01/10/2007 10:25:35 AM PST by raftguide
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To: kellynla
kelly, kelly, kelly. Apparently, you didn't get the memo. Arnold is a fiscal conservative.

Pretty quiet on these threads ain't it? LOL

10 posted on 01/10/2007 10:26:14 AM PST by Canticle_of_Deborah
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To: kellynla

Sorry I asked.


11 posted on 01/10/2007 10:26:17 AM PST by Dog (DEMS--- 5 day work week..............errr...nevermind....100 hours...starting...soon .....MAYBE)
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To: kellynla

Conan, What is best in life?

To tax your citizens, see them driven before you and to hear the lamentation of thier women!


12 posted on 01/10/2007 10:29:05 AM PST by TheKidster (you can only trust government to grow, consolidate power and infringe upon your liberties.)
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To: Dog

B-B-But I thought he was a "fiscal conservative" and "libertarian". Remember this everytime you hear a FReeper trashing social conservatives and demanding that we support the party RINO because he is "viable".


13 posted on 01/10/2007 10:29:09 AM PST by streetpreacher (What if you're wrong?)
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To: Dog

LOL

no problemo...
not to mention he's sleeping with a 'Rat.
so from his record we know who wears the pants at his house.


14 posted on 01/10/2007 10:29:57 AM PST by kellynla (Freedom of speech makes it easier to spot the idiots! Semper Fi!)
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To: calcowgirl
"Here's a link to an article by Arnold's finance director, explaining the twisted logic (I included links to an opposing article by Jon Coupal of the Howard Jarvis Taxpayers Association calling for "intellectual honesty."

Thanks...but I already have a headache. LOL
15 posted on 01/10/2007 10:38:10 AM PST by kellynla (Freedom of speech makes it easier to spot the idiots! Semper Fi!)
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To: Dog

Kaleefornians - Stupid gets as stupid votes.


16 posted on 01/10/2007 10:47:32 AM PST by Enterprise (Drop pork bombs on the Islamofascist wankers. Praise the Lord and pass the hammunition.)
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To: kellynla

But - Arnold's a Republican, and he can get elected!

Sheesh.


17 posted on 01/10/2007 10:51:43 AM PST by dontposttome
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To: goldstategop

Interesting in a Chinese sense, it seems...
Of course, Arnie is using the semantic ruse of "fees" vs. "taxes" primarily to skirt the Republicans ability to deep-six a tax increase. Fees don't require a 2/3 majority, taxes do.
Interesting year, yup, that about sums it up.


18 posted on 01/10/2007 10:53:51 AM PST by absalom01 (The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants.)
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To: Enterprise

Yeah, well don't blame me. I voted for McClintock and in Nov. voted for the libertarian candidate. Seems like all my conservative votes the last few years have gone for nought. And what's up with that? With all the conservative talk radio, FNC, many conservative publications etc. we keep losing. The Rats are taking over every where. Not just California but everywhere. Short of a full fledged revolution, I am at a loss. I am one frustrated MFer


19 posted on 01/10/2007 11:03:53 AM PST by lardog
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To: lardog
"I voted for McClintock and in Nov. voted for the libertarian candidate."

LOL - then you must have copied my ballot. I think it was dreadful that neither McClintock nor Poochigian were elected. The problem is, and I don't know how to say this delicately or diplomatically, is that the stupid people outnumber those with reasonable intelligence, but their votes count the same. There is no other possible explanation.

20 posted on 01/10/2007 11:27:05 AM PST by Enterprise (Drop pork bombs on the Islamofascist wankers. Praise the Lord and pass the hammunition.)
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