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Ailing Businesses Fear Schwarzenegger Tax Hikes
The San Francisco Chronicle ^ | November 18, 2008 | Matthew Yi

Posted on 11/18/2008 7:53:19 PM PST by St. Louis Conservative

Gov. Arnold Schwarzenegger's tax package, the largest in California in nearly two decades, would affect everyone who buys goods, drives automobiles, plays golf, attends commercial sporting events or has a drink at the local watering hole.

The governor has called his plan - billions of dollars in spending cuts along with $4.7 billion in new taxes during the current fiscal year and an additional $9.5 billion in taxes next year - a drastic measure that's desperately needed to address an estimated $24 billion revenue shortfall over the next two years.

While most experts agree that raising taxes in a struggling economy is a difficult proposition, many lawmakers and legislative aides who will continue meetings this week in a special budget session at the state Capitol say the state's fiscal crisis is so dire that California needs to figure out new revenue sources quickly, even if that means new taxes.

But those who would feel the impact of Schwarzenegger's tax proposals, including operators of golf courses, bar owners and auto mechanics, say the proposed levies would devastate their already struggling businesses.

(Excerpt) Read more at sfgate.com ...


TOPICS: Business/Economy; News/Current Events; Philosophy; US: California
KEYWORDS: calbudget; california; caltaxes; economy; rino; schwarzenegger; socialism; taxtaxtax

1 posted on 11/18/2008 7:53:19 PM PST by St. Louis Conservative
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To: St. Louis Conservative
Raising taxes in a recession - about the dumbest thing you can do.

It is not a zero-sum game. The pie will actually shrink. Government will actually take in less revenue with higher taxes (see how the NYC tobacco tax increase actually lead to less tax revenue).

The only thing this will help is the black market...

2 posted on 11/18/2008 7:56:22 PM PST by 2banana (My common ground with terrorists - they want to die for islam and we want to kill them)
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To: 2banana

That’s racist.

/s


3 posted on 11/18/2008 7:56:55 PM PST by TheZMan (Admin Moderator, "No. We dumped it because it was stupid.")
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To: TheZMan

blacks will suffer the most under a poor economy


4 posted on 11/18/2008 7:58:15 PM PST by ari-freedom (So this is how Liberty dies... with thunderous applause)
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To: St. Louis Conservative
"...billions of dollars in spending cuts..."

There will be no spending cuts. There never are. Just the increase in taxes. More businesses and people will flee as more economic activity goes underground or out of state.
5 posted on 11/18/2008 7:59:47 PM PST by KamperKen
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To: 2banana

see how the NYC tobacco tax increase actually lead to less tax revenue

well bloomberg wanted to eliminate smoking. the anti-smoking ads are verrrry effective.


6 posted on 11/18/2008 8:00:04 PM PST by ari-freedom (So this is how Liberty dies... with thunderous applause)
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To: ari-freedom
well bloomberg wanted to eliminate smoking. the anti-smoking ads are verrrry effective.

People are still smoking just as much in NYC - they just get their cigarettes...elsewhere.

7 posted on 11/18/2008 8:01:37 PM PST by 2banana (My common ground with terrorists - they want to die for islam and we want to kill them)
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To: KamperKen

spending cuts are usually of the wrong kind such as fewer cops and firefighters.

If bloomberg followed the policy prescriptions of reason.org (more privatizations) then he would deserve a break from term limits. But even a monkey can raise taxes and fire cops.


8 posted on 11/18/2008 8:02:47 PM PST by ari-freedom (So this is how Liberty dies... with thunderous applause)
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To: St. Louis Conservative

I remember his words when he ran for governor...”I vill bring bidness bach to Caleefornya”.

Nice try Ahnold.


9 posted on 11/18/2008 8:04:39 PM PST by RetSignman (DEMSM: "If you tell a big enough lie, frequently enough, it becomes the truth")
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To: St. Louis Conservative

Any raise in taxes should be accompanied by a reduction in California government pay for all involved.


10 posted on 11/18/2008 8:04:45 PM PST by Loud Mime (Good is Evil and Evil is now good. The alarm has rung.)
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To: St. Louis Conservative

Raising taxes on vet care ... which means that it will cost people nearly 10 percent MORE to properly care for their pets. Sheesh. Let them tax something ELSE!!!!!


11 posted on 11/18/2008 8:19:05 PM PST by PERKY2004 (Please pray for my military husband -- he just returned from his 5th deployment to Iraq!)
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To: RetSignman

He soon found out that the public employee unions run that state, and demand huge salaries for everyone, including lavish gold-plated benefit packages and generous pensions.

The city of Vallejo, CA had to declare bankruptcy because they were paying police officers and firemen $150,000 to $200,000/yr plus full benefits and pensions.


12 posted on 11/18/2008 8:28:51 PM PST by St. Louis Conservative
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To: St. Louis Conservative
"I am in principle against taxing because I feel that the people of California have been punished enough. From the time they get up in the morning and flush the toilet, they're taxed. Then they go and get a coffee, they're taxed. They get into their car, they're taxed. They go to the gas station, they're taxed. They go for lunch, they're taxed. And this goes on all day long, tax, tax, tax, tax, tax! So even when they go to bed, you can really go to bed in fear that you may get taxed while you are sleeping, that there is a sleeping tax. This is crazy! This is what this state does and this is why so many businesses have left."
Arnold Schwarzenegger, August 2003

Great script writer, nothing more.

13 posted on 11/18/2008 8:37:44 PM PST by calcowgirl ("Liberalism is just Communism sold by the drink." P. J. O'Rourke)
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To: St. Louis Conservative

Sunday, May 25, 2008

California’s payroll soars under Schwarzenegger: Six-figure earners more than double

The San Francisco Chronicle reports:

The state of California’s payroll is skyrocketing, even as its budget deficit has grown to billions of dollars in recent months.

In Gov. Arnold Schwarzenegger’s first four years, the total bill for state workers’ salaries jumped by 37 percent, compared with a 5 percent increase in the preceding four years under then-Gov. Gray Davis, a Chronicle analysis of state payroll records shows.

One month before Schwarzenegger took office in November 2003, just eight state employees earned more than $200,000 a year working in the core state government, which excludes universities and the Legislature. In April of this year, there were nearly a thousand, according to records.

And the number of state employees making six-figure salaries has more than doubled since 2003, to nearly 15,000. Meanwhile, the number of state workers has grown by 26,000 under Schwarzenegger after being cut by Davis, who was recalled from office in the midst of a severe budget crisis.


14 posted on 11/18/2008 8:43:58 PM PST by Mojave (http://www.americanbacklash.com/)
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To: St. Louis Conservative

bump


15 posted on 11/18/2008 9:34:38 PM PST by lowbridge
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To: St. Louis Conservative
What they cannot drive the labor any lower to cover it. Trade the Mexicans for some Chinese. Sac off
16 posted on 11/18/2008 9:58:03 PM PST by org.whodat (Conservatives don't vote for Bailouts! Republicans do!)
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To: St. Louis Conservative

Last straw for some good friends of ours, they are going to move their business either to Nevada or Arizona, are also talking to the State of Mississippo who is actively recruiting California businesses to move there... BIG screw ups by Arnie who promised when he ran the first time he was going to fix what was wrong and encouraged businesses who were moving at the time to stay.


17 posted on 11/18/2008 10:03:23 PM PST by Arizona Carolyn
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To: 2banana

Oh, Nappie has declared tax cuts don’t work and AZ needs to raise taxes, too. /s


18 posted on 11/18/2008 10:03:58 PM PST by Arizona Carolyn
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To: St. Louis Conservative
Republicans, whose votes are needed for a tax increase, continue to maintain that they won't support raising taxes, arguing that would further cripple an already struggling economy.

No doubt. And it won't even be effective. People will just cut back on spending to compenssate for the increased costs.
19 posted on 11/19/2008 7:32:09 AM PST by CottonBall
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To: KamperKen
More businesses and people will flee as more economic activity goes underground or out of state.

I guess Arnie hasn't seen enough people flee the state yet. Pretty soon, only the illegals and anchors will be left. And who will support them then?
20 posted on 11/19/2008 7:33:16 AM PST by CottonBall
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