HIGHER TAXES ARE COMING – BUT WHAT WILL THE GOP GET IN RETURN?
When it comes to this year’s California state budget, there’s really only one question that matters: what’s going to be the price for a tax increase?
Let’s pretend that we can fast-forward past the next few weeks — or several months — of budget foreplay. Let’s assume that the Democratic scheme to pass a tax increase by majority vote doesn’t work, which means that some Republican legislative support will be necessary. Let’s look into the future toward that day when the California state legislature passes a budget by a two-thirds margin for Governor Schwarzenegger to sign.
Assembly Republican Leader Mike Villines has hinted that a package of tax and regulatory incentives that could improve the state’s business climate could be part of a tradeoff for some revenue increases. Because he was careful not to promise such an exchange, Villines was roasted by the state’s mainstream media for intransigence. But while he was not willing to negotiate against himself by offering up absolute assurances of Republican support before any serious discussions had occurred, he was effectively sending a message to… Read More