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