Thursday, March 06, 2008

Raising Taxes

There is hardly ever a real good time to raise taxes, and surely not during tough economic times.

One hopes responsible leadership prevails.


State Democrats determined to raise taxes
Legislative leaders, saying school cuts under the governor's proposed budget are unacceptable, are prepared to dig in for a long fight to get about $5 billion in tax increases.
By Evan Halper
Los Angeles Times Staff Writer
March 5, 2008


SACRAMENTO -- — Democratic legislative leaders declared Tuesday that they are prepared to delay the state budget this year if that's what it takes to get tax increases, which they called the only reasonable solution to California's multibillion-dollar shortfall.

"This is going to be the fight of a lifetime," Senate leader Don Perata (D-Oakland) declared at a news conference. He spoke on the steps of a Sacramento high school that faces layoffs and bigger classes under Gov. Arnold Schwarzenegger's plan to close the deficit with spending cuts, borrowing and deferrals.

"We are not going to be going anywhere this summer," he said, referring to the annual process of trying to agree on a budget by the July 1 start of the new fiscal year. "I told everybody that wants to go to the Democratic [National] Convention . . . TiVo it. That is as close as you are going to get."

Perata drew his line in the sand while standing with Democrat Darrell Steinberg of Sacramento, who will succeed him as Senate chief later this year, other senators and school leaders. Perata said the governor's proposal to cut school spending by 10% is unacceptable, and Democrats will reject any budget that includes less for education next year than this year.

Asked how Democrats propose to make up the difference, Perata said: "Raise taxes. That clear enough? Raise taxes."

Republican lawmakers have repeatedly said they will not vote for any budget that includes new taxes.

Almost every GOP lawmaker has signed a "Taxpayer Protection Pledge," vowing to "oppose and vote against any and all efforts to increase taxes."

"Raising taxes can have extremely negative consequences for the economy," said Assembly Budget Committee Vice Chairman Roger Niello (R-Fair Oaks). "Right now, California has the 12th highest tax burden in the country. Why would we want to move into the top 10?"