Schwarzenegger's tax plan has foes and fans

Sacramento Bee ^ | 11/7/8 | Dale Kasler

[SmithL]

Higher taxes? In a recession?

From refrigerator repair to oil production, Gov. Arnold Schwarzenegger's budget plan launched an instant debate Thursday on the economic impact of increasing the tax burden on a weary populace.

Some analysts said raising taxes would hurt consumer spending when Californians are already scrimping and unemployment is at 7.7 percent. Higher taxes could also worsen California's anti-business reputation. A proposed tax on oil production would increase the state's reliance on foreign sources, some say.

But others said Schwarzenegger's plan has economic merit. Raising the sales tax wouldn't take money out of circulation, they argue; it would ensure money is spent on things like education and social services.

They said broadening the sales tax base to include services like car repair would stabilize California's notoriously volatile tax revenues, which are overly dependent on personal income taxes.

And they said Schwarzenegger's plan to accelerate hundreds of millions of dollars in already-approved public-works spending would help the construction industry.

Schwarzenegger called for a 1.5-point increase in the basic sales tax rate, to 8.75 percent, for three years. He would also extend the sales tax, for the first time, to appliance, furniture and motor-vehicle repair, as well as veterinary bills, amusement parks, sporting events and a round of golf.

"You could make the argument that it's the worst time in the world to be raising taxes, but on the other hand this budget deficit is growing daily,"

[SmithL]

[skeeter]

Arnold used to fancy himself a Reagan disciple. Raising taxes in a recession - I hope this puts that lie to bed once & for all.

[WKUHilltopper]

Idiot! He just signed CA’s death warrant.

[freedumb2003]

I will be voting with my feet. I had planned on moving (to Texas) in a few years, after I pay off my (5.0% fixed and never cashed out) mortgage.

But, California doesn’t want me here anymore. I will take my 6-figure income and head for where they do want me.

As an important side note: I don’t have kids and I am always on the road so I don’t use the infrastructure — my 2001 car has 13,0000 miles on it. Just in terms of Income Tax paid, it will take 12 wage earners to replace my personal tax base. Add to (or, I guess, subtract from) that the infrastructure costs and they will NEVER make up the loss.

GOOD JOB CALIFORNIA!! Keep coddling them illegals.

[TravisBickle]

It’s starting to look like Massachusetts, but with nicer weather.

[Wonderama Mama]

is there surf in Texas?

that's the only way my husband will go. seriously considering it as I read recently that Texas is the only state in the union that can secede because it wasn't annexed, it was brought in through treaty.

[Harry Wurzbach]

Meanwhile, left voting Californicators flee the mess and take up residence in other states. And vote for the same sh*t that created the mess in CA.

Look, we have a lot of stupid mofos in this country. I used to have some hope for this country, but not anymore. The left has won thanks to a century (or more) of control of education in this country. The ultimate problem, of course, is that eventually there will be more parasites than hosts in this country and way more promises than can be paid for. At this point one has to believe that the ultimate aim is to bankrupt the nation and force all of us into servitude. And I'm sure we'll still have morons who will support it as being 'for the children' or whatever.

In the meantime, no more compassionate conservatives, please. No more bipartisanship. No more McCain-(insert hard left Senator's name here) bills.

Back to friggin' basics. If you think you know how to run your life better than federal bureaucrats, then you're a Republican. If you want the government out of your wallet, your bedroom, and out of the business of turning your kid into a progressive robot instead of educating them, then you are a Republican. The GOP needs to get back to playing hardball. Too often the GOP brings a wiffleball bat to the game when the left is carrying a Louisville Slugger.

And it's time for a culling of the herd. No more moderates. No more centrists. And no more "conservatives" who advocate capitulation. We are the party of liberty, not compromise. We are the party of the Constitution, not the party of the mob.

It's time to give the American people a real choice. Now if they're too stupid to support it, fine. That's part of the game. But it's time to be clear about what we stand for and not be afraid to express it. No more f-ing apologists. No more tweedy little nerds like George Will and ditzes like Peggy Noonan. Dammit, we are the GOP.

[freedumb2003]

is there surf in Texas?that's the only way my husband will go.

*sigh* That is what I will miss. There is Galveston, but the Gulf ain't the Pacific. I was stranded in Ft. Worth on 9/11 for 3 weeks and when I got home, the very first thing I wanted to do was go to the beach. Mrs. FD and I went and literally sat quietly for several hours listening to the waves and watching the planes taking off from LAX.

seriously considering it as I read recently that Texas is the only state in the union that can secede because it wasn't annexed, it was brought in through treaty.

I am sorry to tell you that is an urban legend (even some Texans believe it, though). Texas joined the Union just like all the other states -- no special provisos, no escape clauses. It have up any "opt out" options when it was ratified for Statehood.

The reason I chose Texas is b/c I travel for a living and DFW is the second most centralized airport in the country (MCI is first but who in the heck wants live in Kansas?). I have been looking at properties in Grapevine and the cost is low and the standard of living high. Second is that TEXAS DOES NOT HAVE AN INCOME TAX. They do have Property Taxes, but I checked it out and it is just a tad higher than what I pay now, anyway.

I hope Texas is ready for a smart-alec like me.

[nomorelurker]

We do have surf in Texas. The trick is you have to catch the waves just before the hurricane hits.

[Wonderama Mama]

well, at least you have warning unlike our earthquakes!

[Ruth C]

Actually, if they do the cuts listed excluding the parole supervision, the forced day off, but include the elimination of the 2 paid holidays, and include the alcohol tax [it is not a necessity in life] they would get 4.4+/- billion the first year.

I have no problem with that, it’s about time they cut spending. Why not cut the elected officials salaries by 15% :)

[laxcoach]

Hurricane surf is nothing like the big rollers in the Pacific. Even though the waves are big, they are more like huge wind chop.

On top of all that, the Gulf is very shallow, so the big wave potential is quite low.

[Ruth C]

It’s been a loooong time since I was in school, but I vaguely remember that there are 3 states [I think 3] which have a clause in their constitution which gives them the right to secede, is that not the case still? I know the Fed gov passed a law that states couldn’t secede, but was it a constitutional amendment or just a law and which would take precedence the fed law, or state constitution?

[freedumb2003]

It’s been a loooong time since I was in school, but I vaguely remember that there are 3 states [I think 3] which have a clause in their constitution which gives them the right to secede, is that not the case still? I know the Fed gov passed a law that states couldn’t secede, but was it a constitutional amendment or just a law and which would take precedence the fed law, or state constitution?

Your teachers taught the myth. There are no such clauses. The Statehood Ratification documents are pretty much identical for all states.

[Ruth C]

Hi,

Well, I think my teachers were not wrong, though it took me a bit of time to find it. There were 3 States, New York, Virginia, and Rhode Island.

[freedumb2003]

Got links? I would like to research this -- I think Texas v. White eliminated the potential execution of any of these clauses but I would like to look at the source materials.

But at least Texas isn't in the list ;)

[The Iceman Cometh]

to 8.75 percent, for three years.

Uhm, sure, that tax will be gone in three years.

Hey Bay Area, still paying the sales tax for the Loma Prieta quake?

[Ruth C]

lol, no Texas isn’t on the list, though there are still arguments that Texas vs White did not really address the issue since Texas had not yet be ‘re-admitted’ to the Union because it was conditional on Texas ratifying the 14 amendment, so the argument is that the Supreme Court really had no jurisdiction in the case. Boy, can’t lawyers make a law say anything they want?

Anyway, here are some links. Now, just for info, I am not arguing for secession or against it, I was only asking about my remembered 3 states that kept that right and if I were remembering that correctly. People are still arguing whether States have the right to secede.

http://info.interactivist.net/node/3930

http://www.bonniebluepublishing.com/The%20Right%20of%20Secession.htm

http://www.endusmilitarism.org/secessionlegality.html

http://www.vermontrepublic.org/issues_essays/thomas_naylors_writings/the_constitutionality_of_secession