WEST SACRAMENTO — Gov. Arnold Schwarzenegger has proposed $4.4 billion in tax increases and billions more in spending cuts to close California's worsening budget deficit, declaring: "We must stop the bleeding."
Schwarzenegger on Thursday called for a special session of the state Legislature to address a deficit that has grown to $11.2 billion just six weeks after he signed the budget for the current fiscal year.
He said the state's economic condition has deteriorated significantly since then, with a cratering stock market and the continued decline of the housing industry.
California's budget relies greatly on capital gains taxes, which have dropped precipitously in recent months along with swooning stock prices. Sales and property taxes also have declined.
He said lawmakers will not be able to close the budget gap with cuts alone. He proposed a temporary 1.5 percent sales tax increase and other "revenue generators."
someone please take a barbell and ram it up his sorry behind.....please?
He's taken my state and piliged it.
You wxpected something else? Steroids do that to the brain.
He is a RINO republican in name only................As a Californian I hope Arnold leaves CAL E FORN E YA real soon. He has been suckin' wind for a while....the luster has worn off.
bottom line....we need more and more taxes to supplement those who suck off the hard working people in California and America.............Ever walk into a DMV building and actually see someone working...........ever drive down a street and not see some "fat guy" with 3 inches of "butt crack" holding a shovel waiting for someone to tell him how to use it............Ever go into a Hospital emergengy room with a real injury and have to wait behind all the illegals getting well baby care for free...................ever call a state deparment office and get someone on the other line that speaks english you can understand.............LA county spends 1 billion dollars a year on illegal aliens .........................Don't worry about that ARNOLD you twit......just tax the hard working man and take care of them..........upyurz Arnold...................
Just out of curiosity - how else is government to run if not by taxes? I don't understand this thinking.
We don't understand because Schwarzenegger, you and I are socialists. We should just report to the gulag being set up in Alaska by Sarah Palin.
Just out of curiosity how much do you want to give out of YOUR paycheck in taxes 40 -50-60 percent..........................Most taxes are wasted..why give them more.........L A COUNTY.......spends 1 BILLION a year on illegal aliens. Problem is to many fat lazy Americans who don't even try...free loaders is all they are........Quit feeding on the hard working Americans ....get off your fat ass and do your job.............
Hi Vas :-) time to learn how to build that igloo I guess!
Nice rant, didagdog -kinda - but you didn't answer my question.
The thing is governments provide essential services that must be paid for - you know, roads, police, drinking water, schools... etc. You can find 'efficiencies' up to a point in any bureacracy whether public or private enterprise but it rarely ends up cutting the real fat (at the top).
In fact there is no way around taxes and any politician who tells you different is simply lying. As it is, many governments who have aggressively cut (usually corporate) taxes have been either cutting back services or getting into debt - either one of those is simply passing your costs onto the backs of your kids and grandchildren.
Before the election, I heard many economists voice the opinion that Americans post-Bush would inevitably be paying more taxes regardless of who was elected president - the status quo is unsustainable. Time to pay the piper.
In any case, since it's sales tax that the Governator is raising, you can give yourself a tax break and just stay away from the malls.
I totally understand taxes and their need but how much is enough ? When does it stop? If you give people food stamps and all they do is sell them for cash and buy beer and cigaretts, do you just give them more food stamps?
The legacy of neoconservatism has been one of pushing the tax burden downward. Programs that used to be funded from the federal level were forced to be funded from the state level. Programs that used to be funded from the state level were forced to be funded from the county/city level. As federal and state taxes fell, local taxes were forced to increase, or services had to be cut, or cities had to go into debt. As industry has shifted abroad, cities have found themselves struggling to maintain a tax base. Do you increase your property taxes or your sales tax? Do you really need that many police officers and firefighters or can you eliminate a few of those jobs? Just how long can you let potholes go unfixed before residents decide they've had enough? Does the public library have to be open 6 days a week or can you cut it back to 5 to save some money?
If you give people food stamps and all they do is sell them for cash and buy beer and cigaretts, do you just give them more food stamps?
The Food Stamp program is administered through EBT cards now. I don't think anyone gets paper food stamps anymore. The monthly food stamp allotment gets deposited into your card account and your purchases get deducted when you swipe the card through the reader, just like a credit or debit card. I suppose you could sell your card to somebody, but it would be a one-time transaction while your allotment would be deposited to that account monthly regardless.
Exactly my experience Div/0 - when I hear promises of "tax cuts" it makes me cringe because they are in fact tax increases for me.
Meanwhile corporate taxes have been cut all the way back to the lows of the Great Depression....
Just ask local mayors and city councils how they feel about tax cuts at the federal and state levels. They hate them because they know that they will result in tax increases or reduced services at the local level. Nobody wants to live in a town that has high taxes, so they'll move elsewhere if given the chance, which further reduces the tax base.
In this neck of the woods they called it 'down-loading' back in the 90s when the Province cut it's own taxes and simultaneously decreed the municipalities were now responsible for funding services that were formerly Provincial matters. Hey Presto! balanced books for the province. For cities... not so much.
I see now dirt bag Arnold wants prop 8 overturned......along with tax hikes........Time for old Arnold to come out of the closet and declare himself a Democrat............
Am guessing Gov. Schwarzenegger isn't going to win his next reelection.
Too many issues, too many opinions for one state.
It's like controlled disorder.
California if broken into three states might do better:
Southern (Mexican border to Santa Barbara)
Central (North of Santa Barbara to Sacramento)
Eastern (everything east of the San Andreas fault and north of Sacramento)
Of course Orange County could be a state within the state
San Francisco is by itself :)
Frisco is wack.......
So, my Republican governor is gonna raise our taxes. Why the hell can't he do something about the price-gouging gas companies instead?
He is.. there going to tax the big oil companies too!!! It's awesome.. everyone is getting taxed!!! It's time for the little guy to get some free stuff from all the people that make money and get to live in homes!!!
Basing the state budget on capital gains taxes is just idiotic. Who thought of that plan? Property taxes are a far more reliable tax base and not prone to economic shifts. Even income taxes would be more stable than capital gains taxes. Sheesh!
Capital Gains taxes and sales tax will be a more even distribution of the tax burden. Property taxes would put the burden on a lower percentage of California residents.
The Governor isn't a stupid man, I'd put his intellect up against just about anybody's. If this is the plan he has approved I'm sure it was the best one presented.
As General Patton once said:"A good plan violently executed NOW, is better than a perfect plan next week." We need to act NOW, we can't wait.
Let me get this straight. Raising the taxes on capital gains is good policy for a republican, but it automatically means you have a socialist hell bent on ruining the economy if it's suggested by a democrat?
I'd like to know how that works.
Just to be clear, I'm a DEMOCRAT. I'm just happy somebody has the guts to say it like it is; "We need to balance the budget, and this is how we're going to do it."
Frankly, and government that has a Defense, Police Force, Fire Department, and Judicial System, is partially "socialist". It's just a bogeyman word used ones who don't understand, nor care to understand real economics. In other words, "I need an excuse to vote against somebody".
Someone should send out the batsignal for the Republican base and ask why ol' Schwarz is allowed to raise taxes.
I thought only Democrats did that.
Oh, Wait... they all do it.
Ole Schwarz is a Republican In Name Only. We, on the right, call them RINO's and for us to again win National elections they must be purged from our ranks. He's kind of a Dem....you take him.
I dont want him... you're stuck with him :D
If you manage to purge those RINOs and the christian right, give me a call... Id love to join the party again...
Right now, Ill stay with the sane people in the independent / unaffiliated category.
I'm sorry, but the Neo Con right is actually the RINO. You aren't fiscally conservative, you don't believe in small government, and you do believe in interfering in people's lives. Please explain to me how that is in line with Goldwater/Reagan conservatism.
You have ruined the Republican party with your extreme socially conservative values and that is why you were so roundly rejected at the polls on Tuesday. If you think it was the economy, please continue thinking that way, I will be happy to see a Democratic Congress for the next 100 years.
I didnt see anyone disagreeing with that statement
(the Neo Con right is actually the RINO. You aren't fiscally conservative, you don't believe in small government, and you do believe in interfering in people's lives. Please explain to me how that is in line with Goldwater/Reagan conservatism. )
in this thread NickA... not sure who you are talking to though...
I understand the passion... sometimes I worry about the delivery.
Yer right, I should dial it back a bit. I just get so darned mad....:)
If everyone were complacent about it, we really would be ripe for a totalitarian or fascist takeover...
Nothing wrong with a little passion :)
Only in California do they line up to shake the mans hand after he imposes a multi-billion dollar tax increase... "Oh, look, a movie star!" Next week they'll have a parade when he announces closure of all the state colleges. "Quick, get a picture!" I've often wondered if there's a lot of people secretly growing that high-test pot a bit too close to the public water supply...
I live in California, I'm a Democrat, and I pay a ton in property taxes. But on the other hand, I choose to live in California, I LOVE living in California, and if I've got to sacrifice a little because my Governor has come up with a plan that is fiscally responsible (take note US Congress) that will get us back on track, and improve our economy in California, I'll make that sacrifice. Budweiser vs Heineken...Budweiser ain't all that bad.
Let's face it, getting through these tough times ain't gonna be pain-free for 95% of us. It's time we bucked-up and started realizing it.
That's the most intelligent piece I've read on the Vine! That's how you run a government, hopefully Obama will take a hint!
I'm going to frame your reply. Thanks very much for the support!
My son lives in Susanville as I did in the '70s when Jerry Brown was Gov. My son would have voted for "The Governator" from the start had he been able to run for President. Your Gov. is one of the few polititians that doesn't act like a polititian and is by far well advanced in the economic needs of California. After Davis I don't envision a fast clean-up, as I understand vast amounts of damage were done.
The people in Cal. should try living in New Mexico, our Gov is trying to kiss Obama's you know what to get back to the Cabinet post he flunked during the Clinton mess. It was during Richardson's reign as Sec of Energy that LANL "lost" national security information to the Chinese. All detractors of that fact, please check the facts. By the way, anyone detracting from your Gov's business should look and take note of Richardson, he could'nt stand to be away from the press in news-making events while running for President, i.e. kissing up to Hugo Chavez (hugging him actually, same thing! ) Again, any detractors of the facts, please note, check them first!
When he ousted Grey Davis I was still living in Cali. It was the only election in my entire life that I refused to vote in.
It was the year we had to choose between this ass, Gary Coleman and a porn star.
seriously.....not a breath of intelligence between them.
2010 cannot come soon enough.
O.K. so here's the plan: for all you families who have seen their disposable income battered by higher costs across the board, who have watched as their home value has gone way south while their asssesed values and resultant property tax have gone north by 2% this year (as mandated by Prop 13), who are already paying one of the highest sales sand income tax rates in the country, whose potential for capital gains is zero for the forseeable future -- we're gonna make it harder by increasing your sales tax and any other revenue source we can find. We're $11B dollars in the hole despite the fact that we just raised about $6B through a bond offering that many of you purchased. We have to make sure we have enough revenue to pay you your interest --wouldn't want us to default now, would you?
This great state is in a sorry state, thanks in no small part to his role as the Governor. Don't know how to tell you Arnold, but this is not a movie about being governor, this is the real thing. It's time you stop with the stogies and the cute one-liners and get to the bottom line of our problems: a revenue model that doesn't work and a legislature that doesn't know how to fix it. If you don't get this sorted out soon, you'll go out the same way as Gray.
This State has been going to hell since 85, I really noticed it in the 90s and now present. Sacramento and the current regime have destroyed this once great and proud state. Diane F, Boxer and Pelosi are just the top losers & there is a boat load that are so out of step with the Constitution and what is good for the people of this State. Don't Blame the Governor for something the legislation has been pummeling for 20 years. He isn't the one spending our money like a bunch of drunken sailors and he hasn't been around as long as the regime who have had there way with this State. The legislature has destroyed this State not the Governor he can only do so much without bipartisanship support and true American Grit. 8) Hell you could put anybody as Governor nothing will ever change it will only get WORSE. (Traffic, Jobs leaving, Open Borders, Ruthless Street Gangs, Higher Gas Prices, High State Taxes, Property Taxes etc.., High Crime, OMG Health Care Insurance Sucks so expensive) I would say Taxes are the toughest- everyone in my office right now agrees higher taxes is the worst and Out of Control State Spending. rant off 8)
Once again, the truth is spoken. Pelosi is an embarrasment to the whole Democracy, so much for the Liberals that are taking over the Federal Government.
Alright, I can't believe I'm going to do this but here it goes:
Arnold is doing the right thing here. He is stiking up for what he believes in like he has done all summer with the budget issues! He is right, california is way over budget and no one is going to agree to cut any programs so we have to raise taxes. Yes, I will be paying these taxes but I will do so gladly if they are accompanied by a plan to get us out of this.
So... Arnold, show me a plan, a viable plan, that will eventually lower our taxes and keep california out of this mess in the future and I will pay... but not a cent before!
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