Americans for Prosperity of California, part of the national grassroots taxpayer advocacy organization, issued its own statement about the Governor’s revised budget today, which I have posted below. One of the key budget points for taxpayer protection groups is the Governor’s commitment to cutting spending.
As noted in the press release below, Democrats are simply returning to an already-dry well by demanding more and higher taxes. This is a short-sighted plan that will only serve to worsen California’s dwindling tax base. It may seem like inverse logic to Democrats, but cutting taxes in the short-term will actually lead to increased tax revenue in the long-term as businesses and taxpayers thrive and the tax base grows.
AFP CA Applauds Governor’s Budget Cuts
But taxpayer advocate organization sees more long term budget problems
in absence of plan to draw businesses back to state
CAMARILLO –Americans for Prosperity-California applauds Governor Schwarzenegger’s proposed budget cuts announced today in his May budget revision. Facing a budget shortfall of $19.1 billion, the Schwarzenegger administration announced $12.4 billion in cuts to state spending as part of the overall plan to cover the nearly $20 billion deficit.
“It’s simple mathematics that you cannot spend more than you take in,” explained Peter Foy, Chairman of AFP-California. “Governor Arnold Schwarzenegger is taking a step in the right direction by cutting government spending and calling for pension reform to deal with the pension tsunami that threatens our state’s financial future.”
“While we applaud the Governor’s cut to state spending, we note that cutting is only half of the solution,” stated David Spady, State Director of AFP-California. “The state needs to increase revenue by increasing the tax base. The way to do that is by creating a climate that attracts businesses back to the state, rather than imposing policies that drive businesses away. As long as we have onerous laws such as AB 32 on the books, and Sacramento continues to increase taxes, we cannot expect businesses, or the revenue they generate, to return to the state.”
In a press conference following the Governor’s budget revision announcement, Senate Leader Darryl Steinberg and Senate Budget Committee Chairwoman Denise Ducheny both attacked the proposed budget. Instead of agreeing that government spending must be reduced, they called for higher taxes on businesses and oil production, and extending last year’s outrageous tax increases on Californians.
“As usual, Sacramento politicians look for the easy way out of the problems they have created,” stated Spady. “They refuse to deal with the fact state revenues are falling in large part due to the mass exodus of businesses and taxpayers tired of trying to survive in one of the highest taxed and regulated states. Tax cuts and fewer regulations would mean long term economic prosperity for California.”
Americans for Prosperity (AFP) is a nationwide organization of citizen leaders committed to advancing every individual’s right to economic freedom and opportunity. AFP believes reducing the size and scope of government is the best safeguard to ensuring individual productivity and prosperity for all Americans. AFP educates and engages citizens in support of restraining state and federal government growth, and returning government to its constitutional limits. AFP has more than 1 million members, including members in all 50 states, and 30 state chapters and affiliates. More than 60,000 Americans in all 50 states have made a financial investment in AFP or AFP Foundation. For more information, visit www.americansforprosperity.org
May 14th, 2010 at 12:00 am
If producers feel like chickens being ready for plucking…no investment will go down in private industry.
Also, with the loss of highly paid gov. workers….lots of discretionary spending evaporates..
Sum total….no growth!
A misery spiral like the one caused by that daffy governor in Michigan…