Analyst: California faces $28 billion deficit

The spending cuts are good, but rather than hike taxes, it would probably be better to have Tax-Free days like Rudy did in New York. 

I thought Arnold supported not raising taxes at all right now due to the economy?  WOW!  Cali is pretty heated right now in some areas and divided due to the recent election and propositions. This new info can't be coming at a good time!

Looks like a job for Terminator, Arnold! ;-)

temporary tax hikes turn into permanent tax hikes.

"Many Californians have lost their homes, they've lost their jobs ... and everyone is worried about their future," Schwarzenegger said

So all these guys who have lost their homes and their jobs are now going to pay more taxes?  My 4 year-old can see the problem with that!

No way the Republicans in the legislature will go for that.

ah my nephew won't be happy his party is raising taxes and obama is going to up his income tax. hahahahhahahaaaa    seriously its going to get worse if we can't find a way out of this.  personally i would like to see ford, and gm start selling stocks without the brokers to us little people.  my dad bought a  model t for his first car.  us little people could give an american company a leg up and get something back for it when the new green cars roll off the line.  i'm in for a hundred bucks if they do that.  coarse they would have to find out if it was cost effective to do that.  still would be nice to be able to do something now that we got obama elected.  i already changed my light bulbs and heat with pellets,  i think there are a whole lot of us that would like to do more to help this country.  i conserve, wash clothes in cold water,  keep the air up on the tires etc.  so what else can we do.  save some money, can't invest as i can't afford the brokers fees and why pay them to a broker any how as they kind of slit our throats on wall street.  still backing a good american company might be something we could do.   i wrote a email to ford,  i don't think they will hear me or read it.   ah i'm feeling like now that we got obama elected  he should tell us or ask us what we can do now to help ourselves. each other and our country. 

The Republicans, the party of "lower taxes" bawaaahahahaha.

Reaganomics is a dead concept. Give it up.

If I remember proposition 13 correctly, the Governor nor the legislative body can increase taxes, only the people of California can increase taxes.  and that is by a 66% positive vote. 

I tell ya, Arnold's pragmatism has been impressive. When he first ran and I didn't know anything about his politics it looked like another puppet regime for the backroom Cheney-esque Republicans, but this guy has looked like a true problem solver even when his solutions aren't necessarily popular. I think he's doing the best he can.

The bigger issue is that there has been a huge sucking sound in state governments since Bush took office. I've watched state sales tax, property tax, and every other kind of tax soar in the last four years as money evaporated from the federal government due to the tax cuts for the rich. I've been taxed up the you-know-what for the last eight years to subsidize Bush's rich buddies. Schwarzeneggar is just taking that to the next level in California because now they are dead broke. The Bush trickle down approach was a joke.

The most reprehensible part of this mess is that the Reps, after bleeding the country dry, are trying to use this opportunity to give a land grab to oil companies and investor robber barrons. Forget gay marraige, they need a law to prohibit Reps from stealing every last cent from the middle class.

I hope we turn this thing around in the next 8 years.

Quick !! Call Joe the Plumber. We've found another closet Socialist.

I wonder what impact the 12 million+ illegal immigrants in California has on tax revenue. Great because they are the workers and keep the place moving, but most probably don't pay income tax and work illegally, skirting payroll taxes...while benefiting from the public school system and other services. 

Now he's acting like a Democrat.  This is how you get things done in a State and a Country... you increase taxes... BUT... you cut spending.  That second part is a must.  That is what Reagan didn't do and lead to our first trillion dollar debt.  Bush kept up the tradition... now I can't even say or understand the number.  The amount is insanely foolish.

Got to love the gov. Hey were they not talking vehemently about Obama and how he was going to spread the wealth and how Joe the Plumber was going to be worse off under Obama ? HHHMMMM .. Great job CA. !

But I thought that Republicans cut taxes by borrowing money and that creates a perpetual motion cycle that propels the govt out of debt and everyone, including Joe the Plumber, makes more revenue? *looks confused* Republicans raise taxes?

I am reading all your comments about Cali living a pie in the sky life, we can afford the taxes, etc. None of you have any idea of Cali unless you live here. It is not all a ray of sunshine with swaying palm trees and drinks with little umbrellas. There are lots of neighborhoods that are like Atlanta, New Orleans, and other low income states! We are not all rich people! Why can't he just cut spending?? He has already ruined the workers comp laws, cut education for the kids, and now wants to raise taxes AGAIN!!! Is he going to pay higher taxes??? take a pay cut? Are we all going to get raises to afford higher taxes?

If California can execute 1/2 of it's felon prisoners, taxes will not have to be raised. The facts are that some dudes are born bad. They can't be rehabilitated. They will always prey on honest, decent folk. They don't want to earn their way in life, they prefer to take from others. Off with their heads.

By the way, I consider myself a liberal. Some liberals favor liberal use of the death penalty.

I use to live in San Diego,but everything got so high that I sold my  home and moved to Florida,which is a much better state to live in now a days..Glad I did..Taxes was killing my family.

Arnold thinks he's funny when he's putting Obama down personally attacking this mans body you know what I think Arnold while your all pumped up there showing your muscles I bet if Obama was the low life that you are uneducated and not even a American but having more rights all your life based on your color and those muscles well I know Obama would never stoop to your level but if he would he would tell you that he's got it where it COUNTS! you know what I mean??? betcha !

The governor often has characterized California's budget problems as being caused by runaway spending, rather than a lack of tax revenue, but he said Thursday that the severe financial crisis has flipped that.

"It is now a revenue problem rather than a spending problem," Schwarzenegger said.

Flipped?  so you want after years of over spending you want to raise taxes and now cut spending..maybe you should tighten up on the illegals there, they send alot of money over the boarder..taxfree to am sure..too many illegals draining the budget.

but no mention of illegal's

The problem with Schwarzenegger is that he has not enough lead on his idea, he spent so much energy on his muscles, that there is nothing left for his empty brain. How come this governer is facing financial problem with a state that is so dynamic and powerful? Not enough lead on his neurons