The Lie of a 'No New Taxes' Budget, or Why Arnold Should Use His Veto
Details of the budget deal reached today by legislative Democrats and Republicans have not been officially released, but the leaks have begun. Republicans are saying the budget is a "no new taxes" budget. Of course, that's not the truth.
Tax rates don't increase under this budget, but that doesn't mean the budget doesn't raise taxes. Instead, this budget will rely on borrowing and gimmicks that inevitably force tax increases in the future. In fact, this unbalanced budget will add to the state's debt and debt service costs, which cuts into the amount of the budget that can be spent on actual government services. In the end, people will pay the same tax rates, but they will get less in services. That's right -- less services for the same money. That's a tax increase in disguise.
And if you want to maintain services -- and the public wants to maintain levels of services, eventually taxes will have to be raised to cover this borrowing and the service level. Bottom line: it would be more accurate to call this a "No New Taxes While The Current Republican Lawmakers Are Running For Re-Election" budget.
I would bet that Schwarzenegger will embrace this budget compromise and be done with it. But I'd like to see him use his veto pen. He could call the budget a "fraud." Perhaps he could even make a few campaign appearances around the state and remind Republican voters, in particular, that these legislators just raised their taxes.


















Califorina needs to cut
Califorina needs to cut spending massively. We see all kinds of businesses going out of business. What kind of message do they need ?
CUT YOUR SPENDING...CUT OVERHEAD...CUT JOBS...
What were hearing is they want to help the economy with stimulus spending!
The government cannot create one job without taxing someone else to pay for it.
I hope it all crashes into a bankrupt failure, they deserve it.
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