Undaunted by analysis, Steinberg pushes tax swap

Sacramento Bee ^ | 8/17/10 | Kevin Yamamura

[SmithL]

In an era of term limits, Senate President Pro Tem Darrell Steinberg is now the veteran budget negotiator among the four legislative leaders. Besides the concerns of the Senate Democratic caucus he leads, Steinberg must also consider impacts on state workers who live in his district.

The Sacramento Democrat spoke with three reporters on a variety of issues last week after touring a middle school and job-training facility in North Sacramento.

What follows is part of the conversation on pensions and the Democratic proposal to raise income and vehicle taxes in exchange for decreasing sales taxes.

>Gov. Arnold Schwarzenegger says pension changes must be part of any budget he signs. You say you want him to negotiate with unions. Do you consider pension changes off the table until the unions finish negotiating?

I do think they should be bargained first. Neither (Assembly Speaker John A. Pérez) nor I have drawn any lines in the sand when it comes to a whole variety of reform ideas, but I do think they should be bargained first. The governor and the remaining unions, SEIU, have certainly been at the table now for a number of weeks. … And I don't hear anybody saying, "Absolutely no," to what the governor has asked in those areas. So finish the contracts, and if they include pension reform, we'll ratify the contracts.

>Can you respond to the Legislative Analyst's Office conclusion that your plan increases middle-class taxes?

We disagree.

[SmithL]

Fish gotta swim,

Birds gotta fly, and

RATS gotta tax!

[bill1952]

The LAO asks, will taxes be lower after next year's 1-cent tax cut goes into effect as a result of our plan? I ask a different question.

LOL!! of course you do nitwit.

By making that argument, are you saying the current higher level of taxation is more appropriate for the state than the lower level of taxation scheduled for next July?

Yes, I am saying that.

Almost unbelievable...