Posted by Jon Fleischman at 12:00 am on Aug 25, 2008 Comments Off on Governor’s “Compromise”: Higher Taxes AND Borrowing – Do as I say, not as I do?
Much has been written about the August budget put forward by
Governor Schwarzenegger last week. At
his press conference announcing his plan, the Governor said that
his budget plan was “a fiscally responsible compromise” and will
“put our state on the road to fiscal sanity.”
In reality, after spending some time looking it over, and
discussing it with state policy experts in more detail, the
Governor’s proposal will do nothing of the sort. It includes more borrowing and higher taxes on
hard-working Californians so the liberal majority in the
Legislature can increase spending by billions of
dollars. Worse for taxpayers, his plan
will still leave California with a $7 billion deficit next
year.
The Governor said that more borrowing in the budget is “not a
wise idea and I will not do that.” This
is very confusing because on the face of it — well, it’s not
true. When I look over the plan, I see
billions in… Read More