Posted on 10/30/2008 3:47:24 PM PDT by NormsRevenge
Gov. Arnold Schwarzenegger established a new state commission Thursday to overhaul the state's tax structure after facing significant volatility tied to stock market losses that already have hamstrung this year's budget.
The Republican governor, joined in Los Angeles by Democratic Assembly Speaker Karen Bass, blamed the state's latest budget problem on a tax system that relies on the top 1 percent of earners to pay a significant share of revenues. He said changes are necessary to even out the state's revenues over time to stabilize funding for state programs.
Schwarzenegger did not specify exactly what types of different taxes he would seek, though Democrats in the past have suggested expanding taxes beyond retail and assessing services, such as lawn mowing or auto repair.
The governor signed a $103.4 billion general fund budget in September, but experts now believe the state could be $10 billion short of what was in that spending plan. The governor essentially confirmed that estimate Thursday, saying state "revenues have taken a major dive of 10 percent."
"We are paying for the price right now of this outdated revenue system," Schwarzenegger said. "Just as we have signed the budget a month and a half ago, we are now already having a major problem. The stock market has come down 20 percent since then. And, of course, our revenues have taken a major dive of 10 percent."
The new panel, formally titled the Commission on the 21st Century Economy, will have 12 members, with six appointed by the governor, three by Senate President Pro Tem Don Perata and three by Bass. Schwarzenegger expects them to begin meeting in November and report their findings by April 15.
(Excerpt) Read more at sacbee.com ...
Commission on the 21st Century Economy
The Black Hole Gang
A little late isn’t it?
It’s a tragedy what the Left has done to a once nice Republican state in just 25 years.
WASS!
In related news...
Schwarzenegger warns sales tax increase might be needed
Psst Arnold. I have the answer, but just between us...cut spending! Now go do it and you can take credit for the idea.
He is essentially saying they can't tax the “rich” anymore. In fact, the so called “rich” are paying their fair share and more. It's the same with the Federal Income Tax - The top 1% pays 39% of our Federal Taxes. The top 25%, pay 86% of Federal Taxes. Conversely, the remaining 75% of American wage earners are paying...14% of all Federal Income Taxes.
At least Schwarzenegger sees this...OB and the Dems are still hung up on the rich paying their fair share.
Incredible...
So are they looking for an actual overhaul, or are they just looking for more things to tax? The article seemed to suggest the latter.
“We are paying for the price right now of this outdated revenue system,” Schwarzenegger said.
—
It was chugging along pretty good there for awhile until the boom bust.. but the legislature went even more nuts and the Gub obliged and joined with ‘em and spent and borrowed like crazy.
I’m sure this is merely intended to facilitate tax reductions for Californians...
Do as the Alaskans do, follow Governor Palin’s lead. Drill offshore.
Do as the Alaskans do, follow Governor Palin’s lead. Drill offshore.
All tongue in cheek obviously. Bread and circuses will be the last things taxed.
Ha, ha, spread the wealth Arnie.
Idiots!
Here’s the plan:
1) Cut taxes, across the board, especially on businesses.
2) Cut spending, across-the-board!
3) Put a dent in regulations, that have to be god-awful in California.
4) Finish the fence along So. Ca. border (it seems to be a sieve). On the southern part of that S.D. to L.A. Interstate, you see caution signs to watch for the illegals crossing the road. How are they getting in?
Tax revenues soar! Spending reigned in! Balanced budget, improved economy. Problem solved. Businesses feel welcome!
Amen brother. I don’t even recognize this state anymore. It’s very sad.
Schwarzenegger announces commission to overhaul tax structure.
He should announces a commission to overhaul and reduce state spending
We are paying the price right now of OBSCENE spending and borrowing by government bureaucrats!
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