
Those Who Don’t Know History…
Budget time is coming again, and we are hearing more ominous reports about how bad the problem is. Some of my conservative friends in the Legislature are worrying again that a tax increase is in the cards for this budget, and they believe Schwarzenegger is going to propose one again in the May revise. To do so would be a disaster politically in a year that could be very good for Republicans, but more important, the economic damage that will occur from a tax increase in the midst of one of the worst recessions in recent memory is significant. If Schwarzenegger did propose such an increase, or if enough Legislative Republicans went along with the proposal, the misery index in California would rise dramatically. The harm to working Californians from such a proposal could be irreparable. I hope the Republicans in the Governor’s office, and in the Legislature are smart enough to see that, and to resist the temptation of a tax increase proposal. Yes, $20 billion in additional spending reductions would be difficult, to be sure. The alternative, however, would be devastating economically and politically.
But since this is a political year,… Read More