ACP Pubs

Loren Faulkner

Will One Penny Break California’s Budget Impasse?
August 5, 2008

Governor Schwarzenegger has proposed temporarily raising California’s Sales Tax by one cent, hoping this will break the State’s fiscal budget log jam. It would be a temporary tax, he says, for three years only. One cent for every dollar spent. This would bring in some $4 billion the rest of the fiscal year, and $6 billion more over the next two years. A one-time shot at reducing the current $15.2 billion deficit.

But as one San Francisco attorney said, quoted in the SF Times, "A temporary sales tax increase? When was the last time you saw a temporary increase in sales tax?"

And an Oakland resident summed up what most people are thinking: “…nobody knows if the money will go to the right place, so I don't know if I can support it."

Apparently the Democrats in the Legislature would be for this, while Republicans oppose it. Nothing new here. As the SF Times reported, Senate Republican leader Dave Cogdill says a sales tax increase is out of line:

"We can balance this budget without tax increases, and people should not have to pay dearly with their hard-earned tax dollars to finally make the state implement real budget reform with real spending constraints," he said in a written statement.

Given the history of the California Legislature’s bumbling, irresponsible handling of our tax dollars, year after year, I agree with Senator Codgill, one-hundred-percent.

Posted by Loren Faulkner on August 5, 2008 | Comments (0)