Dan Walters: Old fight over California taxes flares anew

Sacramento Bee ^ | 7/26/10 | Dan Walters

[SmithL]

When California faced a major budget crisis in the early 1990s, thanks to what was then the worst recession since the Great Depression, a Republican governor – Pete Wilson – and the Legislature enacted a big, albeit temporary, increase in state taxes.

Despite the boost in sales and income taxes, however, state revenue continued to decline as the recession deepened, touching off years of political debate over causes and effects.

Those on the right contended that by increasing taxes, Wilson and the Legislature depressed economic activity, thus causing a further decline in revenue. Those on the left argued that if tax rates had not been increased, revenue would have declined even further due to the recession.

Wilson later recanted, saying he regretted twisting arms of fellow Republicans to vote for the tax increase because revenue did not jump.

History is repeating itself.

[SmithL]

Fish gotta swim,

Birds gotta fly, and

RATS (and Rinos) gotta tax!

[Graybeard58]

RATS (and Rinos) gotta tax!

Well, as long as they are just taxing the rich, I guess it's ok.

[SmithL]

Most Californians like the idea of taxing “everybody but me”.

[JPG]

Stop pussyfooting around. Increase taxes to 100% and be done with it.

[Logical me]

Government employees are too many and is costing us too much. Their generous retirement system has broke the State. Most employees have pay scales that are just too high com paired to the general public.

[going hot]

Pretty much ran out of stuff to tax, and the rich are leaving in record numbers. The only thing left of any residual value is the very homes lived in. Look for a push to lift the prop 13 property tax protections, cause that's where the money is.

Of course, that will really fix things! /s

[beachn4fun]

Pretty much ran out of stuff to tax, and the rich are leaving in record numbers

Ha! That is one thing that we just can't get through the thick heads of liberals.

[cranked]

File bankruptcy already California...opps, my bad, you can't......

[VR-21]

Californias parasites seem to have “run out of other peoples money.”

[NormsRevenge]

ReTWEET! ReTWEET !! Re-PeTe Wilson!!

Does he still hold the record for largest state tax increase of all times??

Then came along his protegee , aRnold.

[netmilsmom]

>>Well, as long as they are just taxing the rich, I guess it’s ok. <<

LOL! I admire you greatly!

[calcowgirl]

"Anyone that runs around, I think, and says that (balancing the budget) can be done without raising taxes, I think has not really looked at it carefully to understand this budget or has a math problem and has to get back, as I said, and take math 101," Schwarzenegger said.

He's a moron and a fraud.

[SierraWasp]

Nobody says it better... Lots of interesting history in the Walters essay. Pete tried to publically embarrass Tom McClintock in the main hall of the Crapitol, right in a crowd in front of the Governor's office door by yelling at him that he was "F-ing Irrelevant" because Tom would NOT cowtow to the pressure to pass that largest tax increase in the history of the state.

But you already knew that, right?

[calcowgirl]

Yeah - I remember sumthin’ ‘bout that, LOL.

As Walters points out, Pete finally saw the error of his ways.
But it didn’t stop his protege Arnold (and turncoats like Maldonado and Villines)
from pushing for the same stupid thing again.

If they had an honest bone in their body, they would feel some remorse — but I doubt they do.