Congressman Tom McClintock delivered the following speech on the floor of the House of Representatives on June 26 during the debate on the "Cap and Trade" (National Energy Tax) Bill… The Biggest Economic Mistake Since The Days Of Herbert Hoover I had a strange sense of Deja Vu as I watched the self-congratulatory rhetoric on the house floor tonight, and I feel compelled to offer this warning from the Left Coast. Three years ago, I stood on the floor of the California Senate and watched a similar… Read More

Today is the last day of the 2008-2009 fiscal year, and it is the final opportunity for the State Legislature to place on the Governor’s desk a comprehensive fix to next fiscal year’s way-out-out-whack budget before we are actually IN that fiscal year. By "comprehensive fix" — I mean a package of cuts and reforms that ensures that state government will be able to make it all of the way to June 30, 2010 without having yet another "fiscal crisis" where we are back at the cliff, again.

Governor Schwarzenegger has been 100% on message since the May 19th Special Election — we need a complete fix for the budget situation — one that does so taking into account that the voters overwhelmingly rejected tax increases to do so.

Legislative Democrats, unbelievably Sunday (in the Assembly) and yesterday (in the Senate) rammed through billions of dollars in illegal majority-vote tax increases for what appears to be the sole purpose of sticking the legislative "middle finger" up at California voters — especially since the Governor has and continues to make it clear that any legislation that hits his desk with… Read More

The IHSS program has seen disproportionate growth over the past several years, and IHSS costs have grown nearly twice as fast as inflation and population growth.

With this remarkable growth has come a growing element of fraud, estimated to be as high as 25% of all funds expended. The Governor is seeking simple reforms to help rein in growing fraud in this worthy program. They are:

These are simple steps that ought to be easy to support to ensure scarce funds go farther.

The chart below shows the incredible growth in the IHSS program. Yet another example of a program with rapid growth, runaway fraud, deserving of additional scrutiny to ensure more funds are available to the truly needy. For 2009-10, the chart reflects what expenditures would be without the Governor’s proposed reductions. … Read More

Today is the last day of the 2008-2009 fiscal year, and it is the final opportunity for the State Legislature to place on the Governor’s desk a comprehensive fix to next fiscal year’s way-out-out-whack budget before we are actually IN that fiscal year. By "comprehensive fix" — I mean a package of cuts and reforms that ensures that state government will be able to make it all of the way to June 30, 2010 without having yet another "fiscal crisis" where we are back at the cliff, again.

Governor Schwarzenegger has been 100% on message since the May 19th Special Election — we need a complete fix for the budget situation — one that does so taking into account that the voters overwhelmingly rejected tax increases to do so.

Legislative Democrats, unbelievably Sunday (in the Assembly) and yesterday (in the Senate) rammed through billions of dollars in illegal majority-vote tax increases for what appears to be the sole purpose of sticking the legislative "middle finger" up at California voters — especially since the Governor has and continues to make it clear that any legislation that hits his desk with… Read More

Cap and Tax Bill: I write you this to you after one of the biggest votes of my Congressional career. I’m sure you have already heard a lot about this bill that passed by a vote of 219-212 on Friday evening. It is known by a variety of titles, but most commonly as ‘cap and trade,’ ‘cap and tax,’ or ‘the national energy tax.’ I won’t repeat a lot of what you already know. But suffice it to say, this bill will be a disaster for our economy, which is already in huge trouble.

The bill is so bad that it took a full court press from the President, the Speaker, and just about everybody who works in the West Wing to cajole the votes necessary with threats and treats. Patrick Kennedy (D-RI) was even brought out of rehab where he is undergoing treatment for substance abuse for this vote, and rumors abound that some members were promised 9 figures of pork for their districts if they voted for the bill.

Why is it so bad? According to MIT, it will result in an energy tax that will, on average, cost American families about $3,000 per year! In addition, according to the Carbon Dioxide Information Analysis… Read More

Normally, half a loaf is better than none, but under the Capitol dome that kind of logic does not always work. Over the last few days the Democrats have offered a solution to the short-term cash flow crisis but not to the on-going problem of overspending. The Republicans are split, with some advocating the partial solution then returning to the issue of a long-term fix while others argue that the problem is so acute that we do not have the luxury of time to address the problem incrementally. Earlier I was on the side of those suggesting that we agree on what is offered and come back for more debate on the rest of the problem.

However, Senator Dean Florez (D-Shafter), who is Majority Leader, brought me up short. During the debate on Friday about the short-term measures, he argued eloquently that preventing the state from issuing IOU warrants was the most important item before the Legislature, and since everyone agreed that the proposed bills would cut spending enough to cover the cash gap, they should be adopted now. Then he shocked me with way too much disclosure of the Democrat strategy by saying that the structural deficit and the imbalance of the current… Read More

Note: Thanks to a phone call from Senator Bob Dutton, I stand corrected on my initial posting of this item which claimed the entire San Bernardino County legislative delegation supported raiding local gas tax (road maintenance and repair) dollars.Actually, it was the entire ASSEMBLY delegation from San Bernardino County that voted that way.Only one Senator, Gloria Negrete-McLeod (D-San Bernardino), voted for it. My apologies to Senators Dutton, Runner, Ashburn and Huff.

As of Friday, the state’s attempt to raid the local gasoline tax money cities and counties use for street and road maintenance and repairswas continuing.That’s $288 million in Prop. 42 "deferments", withan outrighttaking of $1.7 billion in HUTA local-share gas tax still on the table.

Let’s review what this would mean if it gains final approval:We would give up our local streets and roads maintenance so they can pay off some state bond debt, prop-up the state’s cash flow and credit ratings, and… Read More

UPDATED: Governor Schwarzenegger just put out this statement… "I will veto any majority vote tax increase bill that punishes taxpayers for Sacramento’s failure to live within its means," the governor said in a prepared statement. "The Legislature will have a difficult time explaining to Californians why they are running floor drills the day before our budget deadline. We do not have time for any more floor drills or partial solutions. It’s time for the Legislature to send me a budget that solves our entire deficit without raising taxes." ORIGINAL POST:

Last night watching the CalChannel on my laptop was like watching an episode of the Twilight Zone where in some horrible, alternative California, it deosn’t take a 2/3 vote of the legislature to enact tax increases. By a majority… Read More