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Schwarzenegger calls for $14.3 billion in tax, revenue hikes
December 31st, 2008, 12:07 pm · 71 Comments · posted by Martin Wisckol, Politics reporter
Here’s the new budget proposal issued by Gov. Arnold Schwarzenegger.
The Associated Press summary: “The administration’s proposal calls for $14.3 billion in tax increases and other new revenue, and $17.4 billion in spending cuts over the next 18 months. It also relies on borrowing and a plan the Legislature approved earlier this year to sell bonds to Wall Street investment firms based on the future value of the state lottery….
“It would raise the state sales tax from 5 percent to 6.5 percent starting March 1, lasting through December 2011. It also would expand the sales tax to services such as vehicle and appliance repairs and veterinary services, boost taxes on alcoholic drinks and tax oil production in the state.
“Schwarzenegger’s plan also would decrease the dependent income tax credit and increase vehicle registration fees.”
UPDATE: Click for our story on Orange County impact and reaction.
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DENA BUNIS, Washington bureau chief, 202-628-6381 or dbunis@ocregister.com
BRIAN JOSEPH, Sacramento correspondent, 916-449-6046 or bjoseph@ocregister.com
JENNIFER MUIR, County government reporter, 714-796-7813 or jmuir@ocregister.com
JOEL WALSH, Washington bureau intern, 202-628-6381 or jwalsh@ocregister.com
MARTIN WISCKOL, Politics reporter, 714-285-2867 or mwisckol@ocregister.com twitter.com/MartinWisckol
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I think it’s time for a recall of the govenor and some of the democratic legislators.
No surprise. He declined to sign the original legislation proposed by the dems simply because it didn’t tax us enough. I called it when some of you were patting him on the back. The California taxpayers should be furious. I think we are getting closer to a tax revolt. Piling more taxes on citizens who are already struggling to keep their heads above water in a devastating economy. The governor is a dyed in the wool liberal wearing conservative clothing. This proposal would have made Gray Davis blush!
So, uh, what is the difference between Schwarzenegger and Gray Davis? Schwarzenegger has dug a deeper hole. Oh, but all is forgiven, as he is our “green” champion! You suck Arnold.
PS. Brilliant strategy to take money away from ordinary folks in a recession.
All we need is higher and more taxes when many of us can’t even find employment. Some families are losing homes not because they overfinanced their home but because there is no or very little money coming in to pay the bills.
How about starting with lowering the salaries of our elected officials first. Maybe the wealthy governor could take the $1.00 a year token salary to help ease the crunch. A lot less travel time between Sacramento and his Southern California home also would help California’s deficit.
I have nothing but contempt for this lying failure Schwarzenegger and all the rest of the liberal, open-border, socialists in Sacremento. Same bs, different day.
Oh, btw. Watch the governator kick this through sacramento with a majority plus one versus a 2/3rds vote which is in direct violation of the state’s constitution and the will of the california voters. This is done under the guise of increasing some taxes, voiding others and then replacing the voided tax revenue with FEES and calling it “tax neutral” so they can do a slight-of-hand trick on the taxpayer! And the judges will support it because they get paid with your tax money. Pure genius, eh? No longer are we a democracy. Not even a republic. It seems we now live under a quasi-totalitarian government!
I am sick of this state. It can’t make it on $100,000 billion a year. Stop the hand outs. There is not one good politician in California except maybe McClintock.
Pelosi, Boxer, Schwarznegger have ruined this state. It is just about beyond repair. Talk about Pork. When God decides he has had enough I am guessing SF gets the first fireball.
Hold your bets. I just called Arnold’s office and was told by staff that the governator will not accept a majority plus one vote. It must be 2/3rds. If that’s the case, why did he waste his time? The republicans will NEVER provide the votes necessary for this to pass through Sacramento. Never happen. What’s the strategy here? Anybody have a clue?
People that call themselves republicans need to wake up. The republican policy is tax, spend, print, print, print…repeat. The republicans have given 2 trillion dollars of taxpayer money away to the most fiscally irresponsible Americans. We all know what Obama is going to do, tax, spend, print…repeat. The only difference is that republicans pretend to be fiscally responsible. In other words they lie.
Arnold is no different. He has been consistent his entire term. Tax and spend. Tax and spend.
Let’s take a look at the most conservative republicans. Rep. John Campbell has supported every bailout. He has personally squandered trillions of dollars from the public trust.
SEC Chairman Christopher Cox is friends with Bill Gross and intentionally looked the other way when Madoff was committing his crimes against our Country.
To Date, Cox still can’t find crime on wall street. The republican party is doomed. They openly betrayed their strongest platform (economic discepline) to benefit the irresponsible. The party can no longer point fingers at the democrats. The republicans have proven to be far worse socialists and can no longer utter the word, capitalism.
@Dwal: The states actual budget approaches 235 Billion when the 80 cents/$1 that we send to the US Government cycles back via Federal programs.
ALL public employees need to have their salaries rolled back to 2003 levels immediately. There is not a need to burden the private sector more than it is already burdened in California.
now,you recalled Davis for….?
most likely the same people that gave Bush four more years,now look what that got you
Our politicians? Throw them out. Throw them all out! They are all a bunch of traitors to the citizens of this state.
Why is it so hard for these SOB’s to stop spending on crap, just like REAL folks have to do in our piss-poor economy?
Let me keep what I earn!!
When does the shooting start? We need a revolution!
To Dwai’s post above, I say AMEN! Wait until March 2009 when the state runs out of money. No more bonds, loans, bailouts, etc. will be there to help us. How can it happen when there is no /moneycredit available out there? And as for taxes, if people aren’t paying their mortgage or credit card bills, do you think they won’t balk at paying their taxes too? Things are NOT looking good for California or our nation as a whole.
Where’s the recall petition? I’ll sign it!
California has a RINO Governor and a tax-and-spend Democrat-controlled legislature. They have no clue about the financial plight of average Joe and Jane Citizen.
It’s time to move businesses and families out of the sinking ship called “California” and let it flounder on its own leadership and economic ineptitude!
I started reading the budget and I decided to just search for the word “increase”. It shows up 216 times.
R - E - C - A - L - L ! ! ! ! !
well,guess I am going to stop driving,start fixing my own appliances,shoot my two dogs,and stop drinking.Can hardly wait for the new year.
Send the bill to all those who voted for all the billion dollar ballot initiatives.
“Loads his Glock & get’s ready for the revolt!”
This is the result of ongoing government entitlements, liberal socio-economic policies, open border policy and the demise of the Republican Party as we know it. I no longer consider myself a Republican but instead a conservative without party affiliation. Arnold is in bed with liberals as has “W” for the last year of his term. In addition to the election of Obama, I fear this is the beginning of the end for our great country. It won’t occur in our life time, but our grandchildren will probably bear the brunt of the demise. Liberals are seeking a western Europe-like society and they are succeeding much to my dismay. May God bless us all.
Money and Credit are available. Don’t forget people, the fed and Bubble Ben Bernanke will make money out of thin air and give it to Cali when things get tough.
try cutting these outrageous retirement benefits of government employees including police teachers etc. also cut back the saleries of the legislators.
What a dummy! They should cut all salaries for the legislature, cut all perks, cut most social services, and sell any property the state may own. Time for downsizing.
And taxes on services? Come on. We know that services have no standardization like products typically do. Would they adjust the tax rate for services provided by skilled professionals as opposed to those that really don’t know what they are doing? Can we get a tax refund if the services rendered suck?
Why not set up a California Recovery Fund and let the unions donate all of their hard-earned money to it? Those who wish to contribute more to the spend-crazed government can feel good about making a “difference.”
Taxes help reduce the actions for which the taxes are levied. I doubt they will reach their projections and we’ll all get screwed over. Can’t wait to see the foreclosure rate climb if they do this
Geez…
Maybe it is just me, but I would rather have sales tax increased versus the original of raising both sales and state income tax. Maybe I’m missing something?
Schwarznegger failed California and the taxpayers!!!! He’s really just another Democrat!! pretending to be Republican. Get rid of all them, Boxer&Pelosi. They have ruined this whole country!!
Hey, Schwarznegger how about getting rid of your jet? Save us some money.
It’s time to leave California.
A failed socialist state.
Idiots.
California is doomed! We are about to be in bankruptcy, yet people refuse to cut back. By the time we pass a budget it will have grown to a larger number. How in the world are we going to make-up a 42 billion estimated deficit next year?
We need to impeach our legislators from Sacramento to Washington and continue to do so until we get fiscally responsible representatives. This is truly out of control. Depression is not an impossibility.
State spending on illegals has finally surpassed available funds and we are going broke! Stop paying the absurd benefits to illegal aliens that lower income Americans can’t even qualify for and you will find the struggle to balance the budget will become easier. Take care of our own before we take care of our neighbors!
“well,guess I am going to stop driving,start fixing my own appliances,shoot my two dogs,and stop drinking.Can hardly wait for the new year.”
LOL! that was too funny, it made me forget about the idiots in power for a second.
RECALL!!!
I’d love to move out to California from AZ, but I just couldn’t get ahead with the way you’re taxed out there. So I’ll stay here and fry during the summer.
You aint seen nothing yet wait till Obama head gets in office, Tax baby Tax!!!!! Talk about fools electing a fool.
Pelosi, Boxer, and Waxman have f-d this state. All these bleeding heart liberals that give to the poor, immigrants and the free-bees have drained this state. These Dems can really spend our hard earned money, they can shovel these program up their ars.
Pack your bags Sweetie, we are out of here!
The Governator has finally gone NUTS !!!!
How are they going to increase taxes when there are so many, and ever increasing unemployed.
They will have to continually increase taxes to make for losses (since cutbacks are not in their vocabulary). We will experience lower tax revenue in many of the following: real estate, business, sales tax, etc…..
We need another “Boston Tea Party”. Only this time instead of wasting tea bags, lets drop the politicians. Some jail time would be justified, unfortunately it would not recoup the waste these insane liberals both on the Republican and Democrat side have caused.
The San Diego County Tax Assessor just retired at age 58 with 160K a year in pension benefit. The cost of pensions for the city/county/state employees in the coming years will surely bankrupt this state.
Time to pack up and leave.
Happy new Year to all!
We’re fortunate to be retired and bought a house in Missouri (Lake of the Ozarks) because of this and the Dem’s other arcane laws. Absolutely beautiful, people wave with 5 fingers and no gridlock traffic. We’re leaving our California tax obligation to about 200 (or more) illegals. For those of you who are stuck here as residents, good luck.
Our complaints don’t mean anything to these politicians. Somehow we never vote these people out and they know this.
Next election lets vote for the new guy/gal. In fact let’s do this until we finally have representatives that actually “represent our interests” instead of their own. Legislators are on track to receive another pay raise this year. How can they criticize the CEO’s of the big 3. Legislators would run a private business into the ground much quicker than the worst CEO’s of private companies.
JUST IN!
Here’s a quote from the floor of the legislation: “Californians have had it good for a long time, I think another way I could say it is SHUT UP & PAY. There yelling & complaining will go away soon enough.”
We have been spending over $12 BILLION a year on services and benefits for illegal immigrants, year after year. Several years ago, our stellar legislators added ” In State tuition” for illegal immigrants. We could cut these services, and save $12 BILLION a year. Maybe they will actually leave and stop breaking our laws.
Spending under our fin Governor has gone up 43%. So much for “blowing up the boxes”, in government.
I heard that they are going to allow two pets,a case of corona and a microwave per ILLEGAL across the border.
Has anyone else heard about that?
LOL
State wages and salaries need to be cut at least 10%. With gas down over 50% and real estate expected to drop another 15-20% in 2009 (real estate expected to bottom out at around 50% off the highs) deflation will be the story for 2009. If all these nosebleed state inflation adjusted salaries continue to elevate at these lofty levels it is no wonder the state will have a crisis. State employees are making out like Goldman Sachs executives. They can easily handle a 10% pay cut - problem solved!
Raise taxes during a depression? You have got to be kidding - Rodney King 2?
At least the politcians are calling them ‘taxes’ and not fees. These politicians really think we are stupid. I doubt if any of the cuts are the freebies to the illegals. I think I’ll run for state office and when I’m termed out I can get on one of those commisions for 120 grand a year + benefits.
Funny how all of you cheered home prices tripling and your entire nieghborhoods being emptied by flippers so that your poor kids had to keep changing friends and move every six months as you watched flipper show after flipper show on TV… and never connected any of the dots.
You raped your houses because you gave your jobs away to people who would work for less. You wouldn’t work for less.
Thus, we have what we have. The Governor did not create this situation. You people did, and you’re acting like a bunch of snivelling twerps.
What is the state going to do for revenue when the only residents left are illegal and/or on welfare?
The people that need to be recalled are the democrap legislators that have continued to overspend for years. They have been in charge of the state for decades and all it’s done is lead us to a $40 Billion deficit, jobs and businesses are leaving the state as well as the citizens tax payers. There really is no hope or opportunity here any more.
Where are the spending caps? Why have they been allowed to overspend for so many years?
Here is a novel thought. Instead of doing all these things that will cause businesses to leave the state, cut staff, or have lower profits, how about focusing on BUILDING the economy (which will create tax revenue) instead of trying to get water from a very dry stone? If the govt insists on continuing to try to squeeze more from an already struggling economy it will create long term problems and not solve anything.
I voted for McClintock.
With that said, this state is in the toilet. Stop providing social services to illegals and watch the money add up. Keep in mind that ONE illegal will use multiple identities to collect multiple benefits. This is a HUGE problem not only for this state but for the country as well.
listen up you bunch of selfish crybabies- there are alot of
people out there that are counting on you to
support them- like illegal immigrants and state employees-
so just suck it up- work an extra 10 hours a week–
pay your taxes and quit your bitchin- just because you werent
smart enough to get a government job doesnt mean you
have the right to deny already over-paid state employees their cushy
retire at 50 with 90% pay pensions– and after all the politicians
have done for you- making laws- determining taxes and fees–
show some appreciation for your public servants - they have
sacrificed for you and this is the thanks they get? shameful
When you live with a Kennedy you become a Kennedy. I voted for McClintock and still believe he would be the best choice in the next election.
Tax my dog care……..come on……..only a democRAT could come up with such a thing. Why don’t we tax each border crossing, like a toll $4.00 each way, that could solve two problems at once.
Tax Revolt plain and simple… Can they put 6 million people in jail at one time? Fire them all and start clean, there are thousands of citizens that are more qualified than anyone presently in Sacramento.
Did anyone actually read this budget proposal? There is an increase to state workers of $759 Million and an increase to the teachers union of $972 Million. That’s not a cut, it’s nearly a Billion MORE to the teachers union.
They’re stealing $100 Million from the transportation fund.
TAYPAYER’S REVOLT
IT”S TIME TO TAKE THIS TO THE STREETS.
AND THERE WILL BE BLOOD.
OH YES, THERE WILL BE BLOOD.
To all the dummy’s that voted for change your getting it. The democrats think this is what we want. Also I consider Schwarzenegger Bush and McCain liberal democrats as they have no clue what a conservative Republican is.
We deserve the government we elect. Take a look in the mirror, suckers! It doesn’t matter who is sitting in the governor’s office. As long as you have all those socialistic tax and spend Democrats getting elected year after year in our legislature , the budget will continue to climb. Who out there thinks California’s next governor will be anything but a Democrat? It will either be that illegal alien backed midget from LA. or the homosexual backed lothario from Frisco. Either pay up or move.
Auction Heaven in ‘07…. said wy better than I could. These are the same folks crying because there is not enough fire equipment and police, they want that and smooth big roads, schools for their kids but dont want to give up a dime of their money to do it. Just like all of the other bubbles bursting on an yearly basis this day of reckoning was coming too. When cities, state and county government turned a blind eye to the lies appraisers were making about the value of homes many saw this coming and did nothing. We are now reaping what we sowed.
last person I voted for was ross perot.
Ross Perot for Prez
Ozzy for vice Prez
Who has a 5 per cent tax rate?
I sure hope we continue to take care of our illegal immigrants. When they chanted “yes we can” it meant they can and will bleed our social services, medical, education, welfare, unemployment and budget dry.
Where else do you think all your tax money goes?
I’m a state worker for Caltrans. From what i learn from our management, Caltrans employee are getting paid from private funding. The state does not have shortfall in the private fund but in the general public funds. But we are still getting cut in salary anyway.
The Governor is taking away money from private funds to help with general fund which is not enough to plug the whole.
I have no problem tighten down our family budget during tough times but i don’t like the idea of using state employee salary deduction as a leverage to deal with the legislature to get a deal.
Like any state agency, State need to improve the efficient of the management, we can always see money mismanage left and right by weak and unfit middle management.
Why not change new leadership right from the directors and going down? These people has been sitting on the same seat for so long and grown complacent.
“Read my lips”
It is time to split the state in two. Move all of the illegal immigrants from southern Calif. to the North, where Pelosi, Boxer, and Feinstein are located. They want to leave our borders open, then let them deal with it. They can move into the foreclosed houses in Sacramento.
I’ll pay taxes for government workers over illegal immigrants any day. At least they are here legally and had the sense to get a government job.
It’s the DEMS, folks! Wise up! They are messing up Congress and now it hits out State!
Box and Co. are more concerned about Obama’s plan to feed the unemployed/too lazy to find a job folk! Handouts do this to society and we, who earn well and pay taxes out the nose have to pay more!!!
Shut the border down NOW! Cut of Food Stamps NOW! The Mexicans think we are a JOKE!!!!!!
Nice comments, Les!
Damn Dems!
To ocobserver: You’re absolutley right about the tax revolt! I think it’s time we have a “Boston tea party”! I have been wondering why anyone thought Arnold was remotely qualified to be our governor. But he has shown me exactly why he’s qualified-He’s a full-fledged liar just like the rest of them. Catering to the special interest groups and ignoring the will of the people. And what is this about- “sell bonds to Wall Street investment firms based on the FUTURE value of the state lottery…”
what value is the state lottery going to have with the government and half the population going bankrupt?? Of course the idiots on Wall Street would probably buy these bonds……
californian are so dumb you voted for this uneducated stare at himself in the mirror for 5 hrs a day guy
Tax hike. That’s funny.
The upcoming “equality tax protest” on April 15th will surely make Arnold’s head spin, and will be HUGE WAKE UP CALL to all Californians who were supportive of PROP 8. Pay up, heterosexuals agaisnt equality - you bought your government, now you can PAY FOR IT.
The problem with California and the reason I moved after living there my entire life (46 yrs) is because of the lack of control over immigration, the welfare system and high crime rates. All of those who are welfare (public assistance) are NOT paying any taxes, crime alone cost the state of California billions every year and immigration is out of control and no solution in sight…….I now live in the wonderful state of Oregon where I own my own home on 1.9 acres at a very low price to purchase, we have very reasonable property taxes and NO sales tax!….it’s awesome. I use to love living in the “Golden state” but enough was enough for me….I left the sunshine, smog, traffic, high cost of living and all of the above mentioned for a peace of mind and money in my bank account…..my car registration for 2 years in Oregon is $150.00 (75.00 dollars per year) it cost me more over $200.00 for one year in California–absolutely rediculous!…there are better places to live in the U.S. where the cost of living is cheaper, the neighborhoods have no crime and people are willing to work……Oregon is a beautiful state, lots of sunshine in the spring/summer time and the 4 seasons are much appreciated
When will we all WISE UP and REALIZE that WE are the PAWNS in this game….If you really want to know the agenda, check out this video: http://www.freedomtofascism.com. You can find it on YouTube.
Standby! You really WON’T like what you see…
One day, the truth about Schwarzenegger’s so-called “water shortage” will be exposed.
Clearly, he and Alan Autry were hired to charm the public as they misguided the focus. The water infrastructure upgrade wraps up 50+/- yrs of secretly altering the valley’s water system for upcoming water diversion beyond Friant/Madera. Likely behind plans for the new dams as well.
Development. Greed. Annihilation of innocent people to pull this off.
Talk of citywide poisoning - fluoride, beyond water.
See my page http://www.myspace.com/marlalk4