Archived: Editorial: Maybe Sacramento Needs A Washington Bail Out

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Gov. Arnold Schwarzenegger, panicking at the states’ ever-growing budget gap that is now projected to reach $27.8 billion over the next 20 months, has suddenly decided he needs to try anything and everything — from a myriad of new taxes and fees to budget cuts — to try and stave off the state’s impending financial disaster.

The governor has proposed a 1.5 percent sales tax increase, which will probably add the final blow to our dwindling car sales. Not only will it hurt sales of big-ticket items to consumers, it will further add to the states growing reputation as a high tax state.

And those who will be hardest hit by the increase are low- to moderate-income earners, already hurt by rising prices for such luxuries as food and rent. Locally, Angelenos could wind up paying 10 cents on every taxable dollar spent; $10 dollars on every $100; $100 on very $1,000.

The Governor also wants to raise auto registration fees by $12 and increase the vehicle license fee from 0.65 percent of the car’s value to 1 percent. Guess how much more that will add to the ticket price of that car you were thinking about not buying?

Another idea being floated in some corners is an income tax increase. All this, just days after our elected officials pushed for more bond borrowing which they rightly said aren’t new taxes, but tried to cover up the fact that bond payments come from state revenues. Revenues we don’t seem to have.

But Assembly Speaker Karen Bass has another idea—tell the feds the state also needs a federal bail out,

After all, California’s economy should merit at least as much consideration as AIG, don’t you think? The state employs thousands of people, thousands of businesses depend on state business, millions depend on state services.

The analysts say that whatever the governor and the legislature decide to do, they need to start doing it now. We guess that the analysts have lost sight of the fact that this is California: The governor and legislature do not do anything now. And when they do manage to get around to doing something, it is usually done through rose-colored glasses that allow them to believe they can keep spending and not worry about tomorrow.

Maybe we [taxpayers]would all be better off if they do nothing and let the feds foreclose on California. What have we got to lose?

Posted - Copyright © 2022 Eastern Group Publications, Inc.

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  1. Pingback: As I See it » Economic troubles all over…bail us out too.

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