Well, they probably should have made these cuts a while back. This state has been underwater for a while, and the Republican Govenor and Democrat controlled Legislature cannot come up with a plan.
California Governor Arnold Schwarzenegger will seek “terrible cuts” to eliminate an $18.6 billion budget deficit.
"California’s revenue in April, when income-tax payments are due, trailed the governor’s estimates by $3.6 billion, or 26 percent. The gap wiped out gains from the previous four months, leaving collections $1.3 billion behind projections for the budget year that ends in June."
"Democrats this week introduced a package of bills that would raise as much as $2.9 billion annually by imposing a 10 percent severance tax on oil production in the state, repealing corporate-tax breaks approved last year to spur job growth and assessing commercial property taxes differently."
Okay, let's raise tax on oil production which these companies will just pass on to the consumer. The unemployment rate is 13% and underemployment rate somewhere near 20%, so let's repeal tax breaks for companies. This doesn't make sense for two reasons. One, companies/corporations are the ones for the most part that hire the unemployed and Two, any tax increase to corporations will be passed on to the consumer, so prices for goods and services will increase. Where are the proposals to cut spending? How about reducing entitlement programs, no more free services to illegal immigrants, and less government spending.
Just these three things would save billions of dollars. But these require common sense.
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