Free Republic

Fiscal Policy: Anyone who believes high tax rates bring prosperity need only look at New York. Soak-the-rich rates there contribute to a wealth and talent drain the state can't afford. To help their state weather the recession, New York lawmakers in 2009 adopted a surcharge on personal income taxes for those making more than $200,000. Called a "millionaire's tax" even though 76% of those who pay it are not millionaires, the levy lifted the top rate by 31%. It was intended to be temporary. But according to a report by the Partnership for New York City, a group of 200...

Akey factor in Gov. Jerry Brown's plan to balance the state budget is whether he and fellow Democrats could do it by themselves, or whether the votes of at least a few Republican legislators would be required. Politicians and stakeholders are consulting attorneys, but at the moment, no one appears to know for certain – in part because the sections of the state constitution involved have never been legally tested. There's no question that Brown and Democratic leaders want at least some Republican support for placing billions of dollars in income, sales and car taxes on a special election ballot...

Gov. Arnold Schwarzenegger has proposed a temporary one-cent increase in the state sales tax for the next three years in exchange for long-term fixes he believes would solve the state's perennial budget woes, several sources familiar with the negotiations said Monday. The governor's proposal comes as he and lawmakers are 35 days into the fiscal year with no approved spending plan.