Schwarzenegger Hints at Raising Taxes
Governor proposes drastic measures to get California in the black
While the Schwarzenegger plan gets its legislative shakedown, lawmakers in other states are watching their own budgetary options shrink. Even though he's quick to emphasize the lottery proposal's innovations in borrowing, not its tax increase, the new plan seems to come with a warning: If the Governator is willing to raise taxes, what choice do the rest of us mere mortals have?
Reader Comments
idiots
Raising taxes would force more buyers to buy out of state on the internet which will make things worse for the businesses in California.
Cutting pay of all government workers to pre 2003 levels would make a huge difference and keep everyone employed and reduce the budget.
The answer is simple...
California sales tax rate is already one of the highest in the nation. If Schwarzenegger's increase goes into effect, San Diedo county will be paying a 10.25% sales tax. Our residents have been feeling the effects of this finacial crises for quite some time. California as a whole saw finance-related positions fall 6.8 percent over the past two years, compared with 1.5 percent nationally. This problem will only worsen if taxes are increased.
California has a budget deficit of $11.2 Billion. The state also has nearly 3 million illegal immigrants that cost taxpayers approximately $9 billion each year. Educating the children of illegal immigrants is the largest cost, estimated at $7.7 billion each year. Medical care for illegal immigrants and incarceration of those who have committed crimes are the next two largest expenses. This $9 billion figure does not include other expenses that are difficult to measure, such as special English instruction, school lunch programs, and welfare benefits for American workers displaced by illegal immigrant workers. I am not a financial expert, but I’m sure there is an answer in here somewhere.
borrow against the future lottery earnings.
I think things have gotten pretty bad, as far as the economy, over all. And as a tax payer I don't see anyway out of our problem, other than raising taxes, or borrowing against future lottery earnings. I would go with borrowing against future lottery earnings.
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