Posted on 11/13/2008 7:56:02 AM PST by SmithL
Ever since California voters recalled Democratic Gov. Gray Davis in 2003 and replaced him with Republican Arnold Schwarzenegger, Sacramento has been passing gimmicky state budgets that did not raise taxes, but also kicked structural deficit spending into the next year.
Well, the party's over.
In September, Schwarzenegger signed another kick-the-shortfall budget. Then the Wall Street meltdown caused capital gains to disappear, rich people's income to retract - and state revenues to shrink. As the Legislative Analyst reported this week, the state budget shortfall could reach $28 billion over the next two years. State Department of Finance spokesman H.D. Palmer noted the drop in state revenue represents "not a trend, but a seismic event."
The earth has moved. The anti-tax governator has called a special session to address the budget shortfall, and he has renewed his call for the Legislature to raise taxes. Schwarzenegger has proposed more than $10 billion in spending cuts on education, health care and social spending through 2010. And $14 billion in tax increases, including a "temporary" 1 1/2-cent increase in the sales tax, an extension of the sales tax on such services as car repairs and veterinary (but not legal) bills, a severance tax on oil production and a 5-cents-per-drink spike in the tax on alcohol.
Why not squeeze the rich more? In California, the top 1 percent of taxpayers pays 40 percent of personal income taxes - which makes revenues rise and plunge wildly. A sales tax is more stable and would force those in the underground economy to contribute to the services they nonetheless enjoy.
(Excerpt) Read more at sfgate.com ...
Dear Ahnold,
CUT SPENDING AND YOU WON’T HAVETA RAISE TAXES!!!!!
Sincerely,
Red Badger
Arnold, should quit politics and start working out again, He looks like a girly man these days.
Not to worry - - 0bama will bail out California.
And New Jersey, and Michigan, and....
After he lost his referendums in 2005 he gave up on fiscal conservatism. I don’t know if Deborah is correct that it was the fault of Conservatives who sat on their hands. The unions did a blitzkrieg at the time that was successful. That was the same year Bush’s proposal for private partialization of social security flamed out. Maybe that was the year we learned how little the public was willing to accept free market reforms.
I suppose it is occupation in the military use of the word.
When a family finds that it has more money going out than coming in, there are two options, usually executed simultaneously: Increase income while reducing outgo. You sell some stuff and cut back on non-essentials.
Until governments start using the same commonsense approaches that families use, they will fail.
It is kind of ironic that when he ran, he complained how Californians are taxed every day, everywhere they go, that they are “taxed, taxed, taxed”. Now he’s in a position of power, and he sees raising taxes as a key way of balancing the budget.
I wish there were straight talk about gov’t budgets and spending. From what conflicting information I hear, the main problem in Sacramento is that spending has been rising faster than tax revenue, which caused the imbalance. I wish there were straight talk; for example, is a lot of this spending on automatic pilot, subject to federal mandates, for example? I think that straight talk is needed to really understand what causes these problems. Are we taxed too little, does gov’t spend too much, are we compelled to spend certain amounts on schools, healthcare, infrastrcture, bond repayments, etc. that can’t be stopped?
Politicians do a terrible job of explaining all of this to the people.
The voters of California are some of the most nonsensical ludicrous, preposterous, illogical, absurd, bizarre, wacky airheads on the face of the earth.
The California liberals are sitting around Starbucks and naively believe the Messiah will come along and bail them out of their idiocy.
Hey liberals, why not pass another idiot law that costs money to enact, enforce, and keep driving Kalifornia further into the poor house.
I thought the voters of Venezuela were stupid but they cannot carry a tote bag for the foolishness of Kalifornia voters.
Hey Arnold, turn out the lights the parties over.
When Arnold talks of girly men, he certainly knows what he’s talking about.
sales taxes from the underground ecconomy?
ok this author shows why newspapers have a serious “brain deficit” in comparison to COMMON SENSE.
I don’t know if Deborah freedomrings69 is correct, that because it was the fault of Conservatives Arnold who sat on their hands. wasted $70 million on a "special election" when he could have simply waited a few months later and put them on a regular election ballot for free. The unions registered Dems did a blitzkrieg outnumbered Republicans in California and were successful thanks to independents and swing voters ALWAYS having low turnout in special elections. Maybe that was the year we learned how little the public was willing to Arnold was competent at passing free market reforms, considering how he rushed out a bunch of poorly written, half-assed proposals to the public, only a handful of which were worth implementing anyway.
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Fixed freedomrings69's statement on the matter.
They can’t cut spending because some of their spending is MANDATORY via California initiatives.
They are required by their laws and constitution to do the spending.
Part of the job of the leader is to be EDUCATOR in Chief about SELF CONTROL in spending.
(as if you can get GENERATION LAZY to exercise self control in spending. gimme gimme gimme FREEEEE STUFF gimme gimme gimm)
Tax all the people who have left California for better places, i.e. lower taxes, less environmental restriction, etc., and are now making their new locations into the place they left. Once a Californian, always, a Californian.
For instance, almost half a century ago I was well edumacated in a small public school by wonderful caring teachers.
Now the same school is over twice as big with 10 to 30 times the budget, and , get this, our towns population is smaller than it was when I went to school.
And in addition to that atrocity, the kids are not learning.
Next time you run into a "Californian," try asking him/her/it where he/she/it was born.
OK. Print the checks and let them bounce.
There is no future for California unless they engage in dramatic pruning of the welfare state. As in abolishing it entirely, and laying off all "social service" personnel.
I wonder what the burden is in south california of all the illegal aliens?
We KNOW they have crippled california public schools.
Actually I thought the proposals were pretty good. Changing the retirement plan to end guaranteed payouts made lots of sense.
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