Sunset In Taxifornia?
Deficits: We’ve been hard on Arnold Schwarzenegger in recent months, but we’re foursquare behind the California governor in his effort to balance the state’s budget without raising taxes.
The Golden State’s $18.6 billion budget deficit, the nation’s largest, is the result of uncontrolled spending by the state’s Democrat-controlled legislature — nothing else. Yet the very same Democratic legislators are pushing for tax increases in the middle of the state’s worst downturn since World War II — and only a year after passing a $12.5 billion tax hike to boost revenue.
To call this foolish would be the understatement of the year. So we were glad to hear that Schwarzenegger will include steep spending cuts in the budget plan he’ll release this week.
“We don’t believe that raising taxes right now is the right thing to do,” said the governator’s spokesman Aaron McLear.
He’s right. California’s deficit is not only gargantuan, it’s getting worse. In April, the state income tax month, revenue came in 26% below expectations at $3.6 billion — despite last year’s tax hikes.
Democrats’ answer to this isn’t cutting back after years of profligacy. They want a new 10% severance tax on oil production, higher taxes on commercial property and a repeal of corporate tax breaks passed last year to help create jobs.