This year’s state budget is going to increase taxes. I say that neither as a good or a bad thing, merely as a statement of fact. But the only questions to be answered at this point are which taxes will be raised, by how much, and what Republican legislators will get in return for putting up the necessary votes.
Arnold Schwarzenegger, of course, wants to raise the sales tax, at least for awhile. But GOP legislative leaders have previously indicated a willingness to close tax “loopholes”. All have sworn they will only agree to these concession s in exchange for a cap on state spending and other structural budget reforms that will make it easier for the state to avoid the boom-and-bust cycles that have characterized the last two decades of California’s economic and budgetary roller-coaster. But let’s assume that the Democrats are smart enough to give Schwarzenegger what he wants in the way of long-term budget reform in order to access sizable amounts of additional tax revenue, whatever form it takes. So taxes are going up.
The debates over whether a sales tax or income tax hike would be more damaging, and over which loopholes are necessary incentives and which are giveaways for the well-connected, can wait for another day. But now that the broader battle lines are drawn, let’s focus on what other tradeoffs Republicans can extract in exchange for the tax votes they’ll almost certainly provide at some point in the next several weeks.
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August 6th, 2008 at 12:00 am
Good post.
However, No need to raise taxes! PERIOD, END OF STORY.
Why can’t the state government make necessary cut in expenditures and leave the family budget alone.
If the legislators don’t have the guts to cut spending, the voters will have a revolt!
August 6th, 2008 at 12:00 am
I think Dan just wants Arnold to surpass Pete Wilson’s record tax increase of 1991, so that the dubious distinction of largest tax increase in state history passes to another administration.
August 6th, 2008 at 12:00 am
This column reminds me when former Indiana University basketball coach Bob Knight told Connie Chung in an April, 1988 interview… “I think that if rape is inevitable, relax and enjoy it.” So Mr Schnur is telling Republicans that if we’re going to be raped by the state government for more taxes, we might as well enjoy it or try to get a toaster or some nice parting gift in exchange for more of our hard earned income. No thanks Dan. We should force the Dems to cut spending. We’re not under taxed here in CA. They can’t pass a budget without GOP votes. Plain & simple. It’s pretty much the only leverage we have these days. Make use of it.
August 7th, 2008 at 12:00 am
Why is it Republicans seem to be so wimpy and spineless.
We can’t afford to pay any more in taxes!!! We are already over taxed. It is time for the bozos in Sac to live within their means… and wisely and efficiently use the $ they have been given. Republicans would be doubling back on their principles if they raise taxes, and they would be as worthless as most Republicans in Washington DC.
August 7th, 2008 at 12:00 am
You cheap commentators are all the same. You use the services of government, then want someone else to pick up your share of the cost.
Republicans can’t come close to making the budget balance with cuts alone.
August 7th, 2008 at 12:00 am
Why is the budget for K-12 continuing to go up when student enrollment in the state is declining?
August 10th, 2008 at 12:00 am
In answer to Bill Cavala, yes we can. Let’s go back to the budget of 2004 or 2005. We could manage on less money then, why not now?
In answer to Mark Sheppard, because we voted for Prop. 98 which is a formula budget which continually increases the K-14 budget. Prop. 98 needs to be amended.