What suicidal impulse would lead any Republican legislator to believe it is a good for either California taxpayers or the California Republican Party to support: Raising the sales tax by an additional 1%? Nearly doubling the vehicle license fee? Raising income taxes? Spiking the gas tax by 12 cents per gallon?

Honestly, any Republican legislator who votes for this deal ought to re-register as a Democrat, because making the problem worse — which is what this deal will do — is an activity best left to legislators of that persuasion.

I saw somewhere today where Governor Schwarzenegger’s spokesman, Aaron McLear, claimed the "state is running out of money."

This is simply, manifestly untrue. It’s a fib, a fable. The state of California rakes in an absolutely enormous amount of money each and every year. The size of the ginormous haul gets bigger every year. in fact, the amount of tax revenues for this year was sufficient to fund the state budget just two short years ago.

Obviously, logically, the problem… Read More

Readers of my periodic Rants know that I have been highly critical of the way the Bush Administration and Republicans in Congress spent their way to ignominy in the past few years. Like crack-addicted junkies, it seemed like the answer to virtually every problem was more federal spending. When the economy began to slow in 2007, we had the first economic stimulus plan that was based on the brilliant economic principle of giving “targeted” tax refunds to millions of people who didn’t pay taxes in the first place. We were told that this federal spending was necessary to help consumers inject billions into the economy, thus saving jobs and preventing a recession. The stock market was at 12,337 when the first stimulus plan passed a year ago this week to great fanfare. By July it was down by 11 percent to 10,997. Next came the bailout of various financial institutions with the Troubled Asset Relief Program (TARP). This was a $700 billion boondoggle based on the same flawed logic of the stimulus – since the stimulus plan didn’t work to actually stimulate the economy, let’s do more of it. Passing TARP was essential, we were told, to stabilize the nation’s financial… Read More

This just off the transom from State Senator Dennis Hollingsworth:

Although this Californian may be more dramatic in his expression of frustration, I think many Californians canunderstand how he feels, especially when it comes to government’s unresponsiveness. We just want to be heard. … Read More

The system is beyond broken up Sacramento. The “Big 5” negotiate behind closed doors. Then they go present deals to their respective caucuses behind closed doors. It is certainly my hope that the next step in the process is that the legislators then leave their caucuses to their constituents, and to those public policy and political experts in whom place trust, before deciding to support or oppose a deal. I am sure I speak for a great many from the right, left and center when I say that a proposal of this magnitude should be a very considered one, and one where we can talk to our representatives when it matters, not after a deal (good or bad) is done.… Read More

The Sacramento Bee has sent out an alert saying that there is a budget deal. What does this mean? I guess we’ll find out. But I am troubled because the theory is that any "deal" means Republicans "blessing" massive tax increases. If you think taxes are a bad idea, NOW is the time to call your Republican Senator and Assemblymember.

The dynamic of a "deal" is that the Big 5 members agree to take a product to their respective caucuses. Billions of dollars in tax increases should be a "work product" soundly rejected by the Senate and Assembly Caucuses.

Republicans cannot afford the damage to our brand name that comes with being the facilitators of a massive tax increase. We’ll lose seats next year for sure, don’t you think?… Read More

Remember back in 1995, when GOP Assemblywoman Doris Allen denied her fellow Republicans control of the Assembly by allowing the Democrats to make her Assembly Speaker?

The same thing has has happened to Tennessee Republicans, per today’s Political Diary:

Tennessee Republicans may soon find out if the public thinks a willingness to relinquish political power on principle is a reason that Republicans ought to be trusted with more power down the road. In effect, the Tennessee GOP has denied itself the speakership of the State House by kicking the speaker out of the Republican Party.

Here’s the backstory: In November, the GOP won control of both houses of the state legislature for the first time since Reconstruction. That victory was one of the few bright spots for Republicans across the country in 2008 and seemed to set the stage for a GOP resurgence and possible capture of the governor’s mansion in 2010. Then, on Jan. 13, the wheels started to come off. Republicans had rallied behind Rep. Jason Mumpower for House Speaker, and he appeared to… Read More

Rumors abound that there is progress on a budget deal. Unfortunately, if the rumors are true, such progress involves major tax increases: A once cent hike in the Sales and Use tax, an across the board income tax hike, a gas tax increase, and a higher vehicle license fee.These are all bad ideas.

The sales tax is a destructive, unfair tax. America is becoming a service oriented economy to such a degree that the sales tax no longer works. Raising this tax makes an unfair situation for retailers worse. Look around at just about any strip mall in California and you will see storefront after storefront that is the former home of a failed retail business. This is the devastation wrought by the combination of a recession mixed with a high tax. The rumored budget deal proposes to hike the state’s portion of the sales tax from 5 percent to 6 percent. This is a 20 percent increase in the state rate. This will suppress consumer demand, and/or divert it to online vendors. In many jurisdictions it would take the overall rate to 10 percent. This would be a catastrophe for our retailers.… Read More