Posted on 05/10/2008 9:32:39 AM PDT by Reaganesque
SACRAMENTO, CA (KGO) -- Governor Schwarzenegger says he is opposed to raising taxes to help with California's budget shortfall, but his office is holding conversations about what to tax if he changes his mind.
Instead of raising the sales tax, applying it to a range of services might be the way to go to solve the state's budget crisis. The governor's people may be testing those waters with an old ally.
Golfers chasing that elusive birdie might have to cut back on lessons, if that makes the list of services to be taxed.
"Golf lessons are always a 'want.' Some of us consider it a 'need.' I would say that if it's a 'want,' it might have to take a back seat," says golfer Jeff Baldo.
Women seeking that perfect coif might cut back on salon visits.
"Whose wallet really wants to pay taxes? Nobody likes to pay taxes," says hairstylist Jennifer Butler.
A sales tax on car repairs, health club memberships, landscaping, accounting work and lawyer fees is gaining traction at the State Capitol. In fact, sources outside the Schwarzenegger administration say the governor's aides are feeling out the business community behind closed doors, asking members what kind of taxes they would resist the least.
The governor's office denies it's laying the groundwork for raising taxes.
"He's open to people coming in and talking about all their ideas. He's open to having a debate about raising taxes and explaining to them why he thinks it's the wrong way to go. But the governor is not having meetings to talk about the eventuality of raising taxes," says Aaron McLear, the governor's press secretary.
The usually anti-tax business community might be swayed if there were long-term fixes to the budget crisis. Some say if the governor got the business community behind him on raising taxes, Republicans would go along, but not even that would change their minds.
"When it comes to tax policy, the worst thing a government can do is to increase taxes in the face of a declining economy," says Republican Assemblyman Roger Niello of Sacramento.
To avoid severe cuts to education, polls show more Californians are coming around to the idea of raising taxes to lessen the blow.
"We live here in California. We reap the benefits of everything that comes from our government. So, sometimes we have to help them out, too," says Merrill Domondon, a tax hike supporter.
Many other states already applya tax to services, so it's not an unusual idea. But keep in mind, California already ranks fourth in the country for tax burdens per household.
While the average American family is struggling to make ends meet what with high gas and food prices, Liberals across the country, including their Presidential candidates, are offering to make it even harder to pay the bills by proposing massive new taxation on numerous items and services that haven't been taxed before to make up budget shortfalls. Cleary, for Liberals, balancing government budgets is vastly more important than families balancing their own. Hey, if anyone has to cut back on spending, it sure isn't going to be government so, the little people must adjust. If this is "looking out for the little guy," I'd hate to see what Liberals would do to us if they didn't.
No. Once they go through that money they will be clamoring for more. Only with reduction in Big Government encroachment onto individual freedom will the books begin to balance. The problem in America is the practitioners and advocates of Big Government.
How about these turkeys in Sacramento spend less than they take in? HUH?
I want to hear the lawyers howl when it is presented that legal fees are taxable services.
Or are lawyers just more equal than common folk?
How dare you speak such silliness? < /sarc
Arnold, the Communism you fled from collapsed publicly because the elites kept writing checks when the account was empty.
If you want to do that, go back to Austria. The Golden State is not the Golden Goose.
Arnie once said... "We don't have a revenue problem, we have a spending problem. ... Solution?.... CUT, CUT, CUT!"
Those words got him elected.
The people are still waiting.
Taxing car repairs? I would submit that is not a want but a need and in fact is regressive since cars needing repair are older and more likely owned by folks who can’t afford a new one every 3 or 4 years.
I have an idea. They should tax premium cigars (anything found in the Govenator’s humidor qualifies) at $100 a stick. Make Ahnold help out.
okydoky, now lets see... i am taxed on the dollar i make, then i'm taxed to spend it, then the company gets taxed on the dollar i spend on their profit, and the money they pay in wages is taxed and they are paid by the employee, who then spends it and is taxed again, and again, and again etc.etc.etc.......
When we recalled Gray Davis and replaced him with Arnold, I said then that it would never work without replacing our legislature too.
How about a special tax on Hollywood actors? Do it like New York, so they have to pay even if they move out of state.
I suppose cutting the budget -- you know, lowering the bridge instead of raising the water-- is out of the question,huh?
“When it comes to tax policy, the worst thing a government can do is to increase taxes in the face of a declining economy”
Nobody to listen to him in Cali.
Howz about stop paying for medical benefits to ILLEGAL (word not known for LA Times “journalists”) aliens? Major bucks.
Yes what a guy. Sometimes the revulsion I feel for politicians and bureaucrats is so visceral. They create a mess and then want to earn votes on promises of fixing it? We would not deal with any other aspect of our lives the way we are forced to deal with our elected morons. They mismanage the money they steal from us and then they pass laws taking more promising us mana from heaven. As for their claims about not wanting to cut education funding, I have a big question what difference will it make? Maybe if children had to learn the old fashioned way they’d appreciate the education they get a little more. Has adding computers, schools built with vaulted ceilings that look more like shopping malls helped educated one child better?
The results provide a resounding NO!
Talk to any teacher in the United LA school district and once you hear their stories you’d understand why teachers feel the need to carry weapons. Personally I think they should with some of the monsters they deal with and if they have to shoot a “kid” that is trying to kill or rape them then maybe the world would be a better place. I’m tired of the same old game the same old “we need more money for the children”. What children? The ugly monsters they are creating are not children they are the future, the future prison population.
This is a good idea.. but I think Iread when Mr.Shriver, wants to give tax break to movie producers, but I think they should tax moviie theaters move.. and magazines that are not beneficial, people can do without those easier than some of these taxes being proposed..
"We will now tax services, so this way we will not be raising taxes"
Betcha they get themselves exempted.
It has always been my fear that replacing the income tax with a broad sales tax would fail and that we would end up with both. It looks like that nightmare in coming true because if one state gets away with it, others will jump on the bandwagon of this new source of taxes.
Our pre-Gibbons Pubbie (Nevada) Governor added a tax on the sale of homes. When I cashed out in 2003 the state put their hand in my pocket for over $1,000. Ask me why I have abandoned the Pubbies for Independent.
Exactly right! A tax on Hollywood actors. Maybe best a tax on liberal Hollywood actors. Great idea!
Service taxes are easy to drive underground. Many can and do take cash now to avoid state and fed income tax. Raise taxes on them and more will start dealing in cash.
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