Networks Rue How Schwarzenegger’s Car Tax Cut Will Swell Deficit

MRC ^ | 11/19/03 | Brent Baker

[Tumbleweed_Connection]

California state spending has soared faster than inflation and population growth, but hours after Arnold Schwarzenegger was sworn in as the Golden State’s new Governor, the networks tagged his decision, to fulfill a promise and rescind a 300 percent hike in the car tax, as an irresponsible act which will increase the deficit.

ABC’s Brian Rooney deplored how “after running for Governor because the state had an enormous deficit, Governor Schwarzenegger's first official act was to plunge California another $4 billion further into debt.” Over on CBS on Monday night, Dan Rather asserted that “the new Governor must deliver on promises to fix the state's economy and huge budget deficit even though his first act added billions to the projected deficit.” NBC’s Tom Brokaw insisted that the “big tax cut” was “adding to the state's huge budget deficit” while NBC reporter George Lewis filled in the number: “The Governor's first act was to deliver on a popular campaign promise which will add about $4 billion to the red ink.”

Presuming all the money earned by citizens belongs to the state, on CNN’s NewsNight anchor Aaron Brown framed the issue around what it would “cost” the government: “With a stroke of the pen he cost the state tens and tens of millions of dollars in that car tax money.”

The full context for these stories aired Monday night, November 17:

-- ABC’s World News Tonight. Brian Rooney played a clip from Schwarzenegger’s late morning inaugural address: “I will sign Executive Order Number One which will repeal the 300 percent increase in the car tax.”
Rooney lamented: “He signed that order within the hour. So afer running for Governor because the state had an enormous deficit, Governor Schwarzenegger's first official act was to plunge California another $4 billion further into debt. The state was already running a $10 billion deficit, which according to the state's new budget director, could grow to $62 billion in four years unless Schwarzenegger makes tough choices and pushes them through a legislature controlled by Democrats.”
John Burton, Senate Majority Leader: “If they want to take money away from the aged, blind and disabled, or kick a lot of poor children off of health care, that could be done. I don't think the Democrats are going to do that.”

-- CBS Evening News. Dan Rather introduced a story: “Movie actor Arnold Schwarzenegger took the oath of office today as Governor of California. Now, the hard part. CBS's Bill Whitaker reports the new Governor must deliver on promises to fix the state's economy and huge budget deficit even though his first act added billions to the projected deficit.”

Whitaker explained: “That tax cut, however, adds an extra $4 billion to California's staggering budget deficit, which Schwarzenegger's own analyst says could reach $60 billion. And Governor Schwarzenegger still has released no concrete plan to get the state over the hump.”

-- CNN’s NewsNight. Following a live report from Sacramento from Candy Crowley, anchor Aaron Brown rued: “With a stroke of the pen he cost the state tens and tens of millions of dollars in that car tax money. So where does he make up for it, or how does he make up for it?” (Crowley related talk of issuing a bond.)

-- NBC Nightly News. Before an ad break, Tom Brokaw plugged the upcoming story: “Up next, Governor Schwarzenegger takes office and goes right to work with a big tax cut adding to the state's huge budget deficit.”

George Lewis soon warned: “But the Governor's first act was to deliver on a popular campaign promise which will add about $4 billion to the red ink.”
Arnold Schwarzenegger in his inaugural address: “I will sign Executive Order Number One which will repeal the 300 percent increase in the car tax.”

[Rummyfan]

Good that he cancelled this tax.... now when is he going to repeal driver's licenses for illegals?

[SunStar]

Good that he cancelled this tax.... now when is he going to repeal driver's licenses for illegals?

He can't do this by executive order. SB60 must be overturned by the voters or by the legislature.

[Wright is right!]

He will be calling a special session of the Ledge TODAY to repeal the illegal license law.

Michael

[Pompah]

Oh Geez, I never watch network news programs. (Never) So I guess I missed another load of DemoCrap.

FOX ROX. Go Arnold.!!

[concerned about politics]

So? The socialist shouldn't have become so dependant on other peoples money. If they don't like it - tough. They got California deep into debt in the first place. Accept it. Live with it. Get over it.

[princess leah]

Arnold must be more of a threat to the liberals than previously thought since the mainstream press has done a 180 degree turn from idolizing him to trashing him!

[So Cal Rocket]

The unfortunate thing about having the Legislature repeal the Driver's Licenses for Illegals law is that if they pass it by a majority vote, the repeal won't take effect for 90 days (around the end of February), giving the Illegals a couple of months to get their Driver's Licenses from the DMV (since the law goes into effect on Jan 1st).

There are only two ways for this law to NEVER take effect:

1. Have the Legislature repeal the laws by a 2/3rds majority in both houses, or
2. Get enough signatures on the petition for the ballot initiative repealing the law.

[whereasandsoforth]

Leftist Swines are two-faced fresh-water fish feces (bass turds)...they whine about tax cuts for the rich, well why aren't they whining about taxes imposed on the poor. It ain't the California rich that were going to have to line up in court to face fines because they couldn't afford to register the only car they own that transports them to school/work/healthcare facility. Idiots one and all.

[CommandoFrank]

And Governor Schwarzenegger still has released no concrete plan to get the state over the hump.”

Wow, been there two days and has yet to solve the financial problems of the State. What's he doing???

[calljack]

New car sales were down 30% in october due totally to the new car tax. When new car sales tax revenue goes back up with the repeal of this stupid law I wonder if there is really any net loss or gain of money to the state. Nobody on the news talks about this. Cutting taxes will normally result in a net gain of revenue when applied to income taxes, I wonder if this applies to state sales tax revenue vs license fees??

[goldstategop]

The liberal media is annoyed Arnold didn't "grow up" and become "more responsible" when he assumed office, code words for breaking a campaign pledge and facing the reality a budget deficit can be solved only with a tax increase. Poor Arnold. His honeymoon already appears to be over before it began.

[Chancellor Palpatine]

The guy is priming the pump, and working to reinstill economic confidence - a psychological factor.

[goldstategop]

Funny, they never blamed Gray Davis for NOT doing his job and now they're bashing Arnold for stepping up to the plate. You can sniff their bias from a mile away!

[Hugin]

Not one of the arrogant media eletists mentioned that it was a repeal of a 300% tax increase that took effect only a month and a half ago.

[ampat]

I love that headline. Arnold's tax cut will not swell the deficit. The deficit already exists. You can describe it in as many ways as there are accountants (although I doubt they will approach reality). But tax cuts won't cause the deficit to grow (since the deficit came first).

[Maigrey]

I guess liberal journalists are journalists for a reason: they don't understand economics.

Journalists don't do math! That's why they are jouralists.

[Hugin]

Ask 10 economists a question about an economic problem and you will get 11 carefully hedged opinions citing a wide variety of factors.

Ask 10 journalists a question about it and you will get 1 opinion catagorically blaming it Ronald Reagan and George W. Bush.

[talleyman]

"And Governor Schwarzenegger still has released no concrete plan to get the state over the hump.”

Breaking News: The Governator just announced that he will eliminate the budget deficit by imposing an emergency 5000% tax on television networks whose initials don't spell "Fox"... Coronaries at 11:00 ...

[Caleb1411]