Poizner's economic plan calls for slashing budget, taxes

Sacramento Bee ^ | 10/20/9 | Jack Chang

[SmithL]

Republican gubernatorial candidate Steve Poizner said Monday he would restore order to the state's finances by cutting taxes, reducing the state budget by 10 percent over two years and creating a $10 billion rainy-day fund.

Poizner's so-called 10-10-10 plan makes the deepest cuts in welfare, Medi-Cal and prison health care while finding the greatest savings – $3.85 billion over two years – by eliminating government waste revealed after a "top-down review" of programs.

The plan predicts cutting taxes will immediately generate more revenue by encouraging businesses to invest in the state, Poizner said in a news conference.

"My vision for California is we need to do whatever it takes to make California the innovation capital of the world again so people will come here and start companies," said Poizner, who is state insurance commissioner. "And then and only then will we have the money we need to make investments in K-12 and higher education and health care."

Monday's announcement built on earlier Poizner proposals to cut personal income, corporate and sales taxes by 10 percent and halve capital gains taxes.

Poizner's GOP gubernatorial rival Meg Whitman, the former CEO of online auction firm eBay, has proposed making at least $15 billion in permanent spending cuts, including reducing the state work force by 40,000 people.

In May, former Silicon Valley congressman Tom Campbell, the third Republican gubernatorial candidate, released a detailed budget that would cut spending by $12.65 billion and generate $2.7 billion in revenue by asking state employees to give back part of their salaries.

Poizner's plan drew skepticism from Stephen Levy, director of the nonpartisan Center for the Continuing Study of the California Economy.

He said any extra revenue generated by tax cuts would take years to materialize.

[KEmom]

It’s a start.

Cutting gov’t spending MUST be a priority at ALL levels of gov’t.

[Tenacious 1]

He said any extra revenue generated by tax cuts would take years to materialize.

In the past, it seems to have only taken months to materialize. There is some history here to support the approach.

Is CA starting to come around?

[Mariner]

"In May, former Silicon Valley congressman Tom Campbell, the third Republican gubernatorial candidate, released a detailed budget that would cut spending by $12.65 billion and generate $2.7 billion in revenue by asking state employees to give back part of their salaries".

ASKING State Employees to give back part of their salaries!?

Campbell is ELIMINATED for his stupidity. It's down to Whitman and Poizner.