Ben Zycher responds to Genest in Round IV.

I will jump in here to say, again, that with all of these VERY REAL concerns about the cap being expressed by a noted conservative economist, isn’t it time to put on the breaks? Genest is a great guy, but it doesn’t change the fact that his office is under strong pressure to pass this "Big Five Big Taxes" budget deal… Zycher’s responses (he is responded to Genest’ points here): 1. Mr. Genest continues to insist that there would be no transfers from (or reduced transfers to) the BSF after 2010-11, unless the governor decides that there is a need to "cover a current services budget." Therefore, there will be such transfers from the BSF to the general fund as long as the governor decides that there is a "need." And "population plus inflation," as I noted earlier, is far more elastic that Mr. Genest is willing to admit, so that the current services baseline in reality will… Read More

Freshman Assemblyman (and fellow FR blogger) Curt Hagman released the following statement about his stance on the staggering new tax increases in the budget proposal:

“California’s economy is in shambles. Businesses, jobs and taxpayers keep leaving the state. According to the Employment Development Department (EDD), on January 1, 2009 there are 184,500 (8%) more employees on the government payroll than on January 1, 2001. Over those same eight years, private sector employment is up only 33,600 (0.2%).This means that the public sector accounts for 85 percent of the overall growth in California over the last eight years.

Even before an estimated $6.4 billion in business tax increases from last year’s budget, California employers already paid taxes that were 20 percent more than the national average. The national population of millionaire households grew by 5.9% in 2007, Los Angeles County lost about 7000 of these households. Orange and San Diego Counties lost millionaire households as well.

Maricopa County in neighboring Arizona gained 23,000 new millionaire households in the same time period. Why? Arizona’s top marginal… Read More

This just in from Grover Norquist, Prsident of Americans for Tax Reform…

Senator Dutton just released the following statement on why he will not be voting for the budget proposal:

Senator Dutton Voting No

By Sen. Bob Dutton

As California suffers through the worst economic crisis since the Great Depression of the 1930s, I think often of that dedicated employee who just found out he or she has just lost their job and is going home to tell their family.

I can’t get the image out of my head of that person walking in the front door and deciding exactly how to break the news to their spouse and kids – how to tell them that the life they enjoy is about to radically change.

The change they are about to experience isn’t because of what’s taking place with the economy, but rather what measures the state took to balance its budget after years of mismanagement.

That’s the image I will carry when I go to the floor of the Senate to cast my vote against a budget that will raise taxes on California residents by a stunning $14.5 billion.

This proposal includes a 1 percent increase in the state’s sales tax rate, which is already the highest in the nation; many counties will… Read More

By a vote of 61-5:

The economic state of our nation and California is being used by the Democrats in turning this state and country into a socialist paradise. Although out numbered greatly, most Republican legislators have held fast to Conservative Republican Economic principals. Those who have stuck to their guns while under intense pressure form many sides should be commended and rewarded in their future political endeavors. By the same token there are a few Republicans that are sacrificing their principals for immediate personal political gains. They should be considered traitors of the party, their names published frequently, and opposed vigorously in any future political ambitions. It is time that true Republicans stand up openly and loudly for our principals without fear or compromise.

RPLAC officially adopts this resolution commending all Republican legislators holding the line on new or more taxes and oppose big government and that RPLAC name those Republican Legislators who go against Republican values and ideals and proclaim our opposition to their quest for further political positions.… Read More

Today could be one of the worst economic days in US history.

Congress may pass the most expensive aggressive pork laden spending bill ever. Only with thehelp of 3 pathetic Republican senators.

Back home, our legislature is set to impose more taxes on the highest taxes in the US, only to preserve union power. The only way to force new taxes, votes must come from Republicans.… Read More

FYI – The Whitman for Governor campaign has already (in some cases) or is about to (in other cases) announce these federal and state legislative endorsements: Congressmen Wally Herger and Buck McKeon, State Senators Dave Cox and Mark Wyland, Assemblymembers Roger Niello and Audra Strickland, as well as an endorsement from former Assembly Republican Leader George Plescia.… Read More

The job of being a legislative caucus leader is to represents the interests of their caucus members. There is no doubt that overwhelmingly Senate and Assembly Republicans oppose these proposed, outrageous taxes. So why aren't the leaders doing their job, and going back to the Governor and Democrats and saying this plan doesn't work? And if they aren't doing that, are the Republicans who elected them to leadership holding them accountable? When individual legislators fold on a bad plan, it's on them. When legislative leaders do it, everyone who put them into their leadership spots are equally responsible. At least to my way of thinking.… Read More