Free Republic

SACRAMENTO, CA (KGO) -- Governor Schwarzenegger says he is opposed to raising taxes to help with California's budget shortfall, but his office is holding conversations about what to tax if he changes his mind. Instead of raising the sales tax, applying it to a range of services might be the way to go to solve the state's budget crisis. The governor's people may be testing those waters with an old ally. Golfers chasing that elusive birdie might have to cut back on lessons, if that makes the list of services to be taxed. "Golf lessons are always a 'want.' Some...

From a new iTax to higher income taxes, state lawmakers have introduced a slew of new taxes to solve California’s $20 billion budget deficit. Thanks to legislative Republicans (and even a few moderate Democrats), most of these bad ideas have been defeated. While taxpayers can celebrate these victories, the worst tax increase of all still lives: a $45 billion sales tax on services. Late last month, the Board of Equalization Chair reported to legislative leaders that a new sales tax on services could single-handedly eliminate California’s budget deficit. “At the state General Fund rate of 5 percent, a tax levy...

If anyone ever pondered what disasters would await the country if the Whitehouse did fall into the clammy hands of the Democrats we only have to look towards my home state of Michigan. Facing an enormous budget deficit caused by the far left governor Grandholm driving away businesses such as Pfizer and Comerica she resorted to the time tested democratic strategy of raising taxes for the “Rich”, so as Grandholm put it we can “Invest in our State”. Unlike most investments however I sincerely doubt any of Michigan’s taxpayers will be seeing a return on this investment anytime soon. Only...

Sponsors of sales tax expansion plan say proposal may be in trouble By TIM WHALEY A tax plan favored by Sullivan lawmakers may not ever make it up for a House floor vote, possibly leaving a flat income tax as the only leading plan near to a House vote. Lowering the state's 6 percent sales tax rate and expanding the sales tax to most services and exempted items gained steam the past two weeks as an alternative to the flat-rate income tax proposed by House Speaker Jimmy Naifeh, D-Covington. Many income tax opponents, now acknowledging the state has at least...